Wayfair posts nearly 10% revenue growth in strongest quarter since pandemic

Wayfair reported its strongest quarter of growth since the pandemic, with nearly 10% revenue gains and a 4.7% increase in active customers during the third quarter, Retail Dive reported.

The retailer's active customer base grew to 22.2 million, and orders delivered increased by 12.2%, although the average order value declined slightly in the period, according to Retail Dive.

Wayfair's revenue growth outpaced both analysts' and the company's own forecasts, driven in part by a 4.7% rise in active customers and a broad assortment across multiple home categories, Retail Dive noted.

Despite the growth, Wayfair managed to increase advertising spend by only 2.4% year over year, which as a percentage of revenue fell to 9.9% from 10.6% last year, according to GlobalData Managing Director Neil Saunders cited by Retail Dive.

The company's expanding physical store network also contributed to customer acquisition, with over half of shoppers at its Chicago-area store being new to the brand. Wayfair plans to open its 10th store in Altamonte Springs, Florida, in 2028, joining locations in Atlanta, Denver, and Columbus, Ohio, Retail Dive reported.

Smaller home projects appear to be supporting Wayfair's growth as consumers delay larger remodels, benefiting the retailer's broad product offering suited to fragmented buying patterns, Saunders said, as cited by Retail Dive.