Wayfair guided for high single-digit revenue growth in the third quarter with an adjusted EBITDA margin in the 6% to 7% range. CFO Kate Gulliver said the guidance does not contemplate a change in the macro environment and expects gross margin at the lower end of the 29.5% to 30.5% range as the company invests in customer experience. CEO Niraj Shah highlighted second-quarter net revenue growth of 7.5%, driven by a 6% increase in orders and nearly 9% U.S. revenue growth, while specialty retail brands grew nearly 20% and luxury brand Perigold grew more than 35% to over $400 million in annual sales. The company generated $242 million of EBITDA in the second quarter for a 6.9% margin, the best since 2021, and reported $301 million of free cash flow. Management expressed confidence in reaching double-digit margins over time and noted plans to shift toward share repurchases after redeeming convertible bonds.
Wayfair IncCompany guides high single-digit Q3 growth and 6-7% adjusted EBITDA margin, with strong Q2 results and plans for share repurchases.