Why Wayfair Stock Is Up Today

Shares of Wayfair (NYSE:W) leaped 11% on Wednesday after the home goods-focused e-commerce leader delivered stronger-than-expected profits despite a tepid overall economic environment.

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Wayfair's growth is accelerating

Wayfair's net revenue rose 9.7% year over year to $3.4 billion in the third quarter.

The gains were fueled by an 11.4% jump in U.S. net revenue to $3 billion, marking the online shopping platform's fastest pace of growth since the early stages of the pandemic.

"At the start of this year, we told you we expected to take share in the U.S. at a pace we had not seen in several years," CEO Niraj Shah said. "With U.S. revenue growing double digits against a roughly flat category here in Q3, we've done exactly that."

Wayfair's active customers grew 4.7% to 22.2 million as of Sept. 30.

Although average order value declined to $311 from $317 the prior-year quarter, customers are ordering more often and spending more overall.

Orders delivered in the third quarter jumped 12.2% to 11 million, while last 12-month net revenue per active customer increased 3.1% to $596.

All told, Wayfair's adjusted earnings per share surged 33% to $0.93. That was well above Wall Street's estimates, which had called for per-share profits of $0.79.

Wayfair expects to win more market share

Looking ahead, Wayfair sees "high single-digit growth" in revenue in the fourth quarter.

"The momentum we have on orders and customers gives us confidence that our share gains are structural, and we are still in the early innings," Shah said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Wayfair. The Motley Fool has a disclosure policy.