Wayfair surges 35% after announcing 90% jump in April sales as quarantined people buy furniture online (W)
AP Photo / Jenny Kane
- Wayfair was up as much as 35% on Tuesday morning after the e-commerce company announced that April sales were up 90% year over year-Over the year as quarantine people buy home office furniture and cookware.
- Wayfair reported earnings for the first quarter on Tuesday morning that exceeded analyst estimates.
- Despite the increase in revenue, Wayfair posted a net loss of $ 289.9 million in the first quarter.
- You can find more stories on the Business Insider homepage.
Wayfair rose as much as 35% to $ 181.39 on Tuesday morning after announcing on its conference call that April sales were up 90% year over year.
The Boston-based e-commerce company reported first quarter results that beat analysts’ estimates as quarantined consumers bought more office furniture, kitchen appliances, and cookware products.
Here are the key numbers:
Revenue: $ 2.33 billion versus the estimate of $ 2.31 billion
GAAP earnings per share: – $ 3.04 versus $ 3.31 estimate
Active customers: 21.1 million, an increase of 28%
The company initially traded 3% lower in Tuesday’s pre-market trading session following the results as investors digested a growing net loss of $ 289.9 million despite a 20% increase in sales.
It wasn’t until the conference call on the company’s earnings that the share rose significantly.
Continue reading: Renowned strategist Tom Lee recommends buying 12 rundown travel stocks now for an average profit of 32% during the pandemic recovery.
On the conference call, Wayfair announced the increase in sales for the month of April and provided further details on the second quarter results.
“Year-to-date, our gross sales growth has been approximately 90% year over year, an increase of over $ 800 million year over year. This dynamic is widespread across almost all categories,” said Michael Fleisher, Wayfair’s chief financial officer.
Fleisher added, “While we don’t know how long these trends will last, we believe that this period has certainly and permanently accelerated e-commerce adoption in our category.”
The move to Wayfair comes after Amazon reported a “sharp surge” in demand in its earnings call for the first quarter on Thursday.
Today’s move in Wayfair appears to have had a positive impact on the stock prices of other e-commerce companies. Shopify and Chewy stocks are up 4%, and Etsy was up 10% in Tuesday’s trading session.
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