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NEW YORK (Reuters) – Shares of Wayfair (NYSE:W) Inc rose by as much as 24% on Thursday, hitting their highest level in more than a year, after the online furniture retailer reported a smaller-than-expected second quarter loss driven by higher orders and slimmer costs.
Wayfair said that although its net revenue fell 3.4% year-on-year to $3.2 billion, it delivered more than 10 million orders in the quarter, up 3% from a year earlier.
The cost of the merchandise Wayfair sold to its customers fell 8.4% to $2.2 billion. That allowed its gross profit to rise by nearly 10% and its net loss to narrow to $46 million. Analysts had been expecting a net loss of $74 million, per Refinitiv.
Wayfair’s shares rose as high as $90.5, the highest since May 2022. The stock, which has risen by 173% year-to-date, was last up 23% to $90.3 per share.
“The second quarter saw gross margins exceed 30%, a milestone we’ve only previously accomplished during the peak pandemic period of 2020,” Wayfair Chief Executive Niraj Shah told an analyst conference call on Thursday.
