Wayfair Shares Leap on Report of Jump in Revenue-Growth Rate

Shares of Wayfair jumped after the online furniture retailer said its revenue-growth rate more than doubled toward the end of March into April, compared with a year earlier.
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Shares of Wayfair  (W) - Get Report leaped after the online furniture retailer reported that its revenue-growth rate doubled amid the coronavirus pandemic.

Apparently, people who are stuck at home are buying home furnishings.

“After entering the month of March with gross revenue growing at slightly below 20% year-over-year, consistent with January and February growth rates, Wayfair saw this rate of growth more than double towards the end of March,” the company said in a statement. “This run-rate has continued into early April.” 

The company said it’s seeing strong demand for most categories, both in the U.S. and overseas.

Wayfair expects to meet or exceed its previously issued guidance of 15% to 17% net revenue growth year-over-year and adjusted Ebitda margin in a negative 7.3% to 7.8% range.

The company said it’s making progress in its drive for adjusted profitability based on earnings before interest, taxes depreciation and amortization, and for improved cash flow.

Wayfair also said that it privately placed convertible senior notes totaling $535 million.

In February, the company said it was laying off 500 employees, as sales hadn’t turned into profit.

And the company reported Feb. 28 that its fourth-quarter net loss totaled $330.2 million, widened from $143.8 million a year earlier.

Wayfair’s adjusted loss per share totaled $2.80 in the quarter, compared with analysts’ average forecast of $2.63, according to FactSet.

At last check, Wayfair shares traded at $69.17 up 37%. 

After plunging 80% from Jan. 22 to March 19, the stock has about tripled.