Wayfair reports Q1 2026 revenue growth and announces physical store expansion
Net revenue rose 7.4% to $2.9 billion, while the company plans to open large-format locations in New Jersey and Ohio in 2027 to complement its digital strategy.
Wayfair reported first-quarter 2026 net revenue of $2.9 billion, marking a 7.4 per cent increase year-on-year. The company returned to active customer growth, with active customers reaching 21.4 million at the end of the quarter, a 1.4 per cent rise from the previous year. US net revenue rose 7.5 per cent to $2.6 billion, while international net revenue increased 6.0 per cent to $319 million.
Orders delivered rose 3.3 per cent to 9.4 million, and average order value increased to $312 from $301 a year earlier. Last-12-month net revenue per active customer rose 5.2 per cent to $591. The company reported a net loss of $105 million, which was narrower than the $113 million loss a year earlier. Adjusted EBITDA rose to $151 million from $106 million, and adjusted diluted EPS rose to 26 cents from 10 cents.
In a strategic shift towards omnichannel retail, Wayfair announced plans to open two large-format physical stores in 2027. A 135,000-square-foot location will open in Princeton, New Jersey, at Nassau Park Pavilion, serving shoppers across central New Jersey and the broader Northeast. A 130,000-square-foot store will open in Cincinnati, Ohio, at 4825 Marburg Avenue, targeting customers across Ohio, Kentucky, and Indiana.
Wall Street analysts broadly maintained positive or neutral ratings but lowered share price targets for Wayfair shares. Citi lowered its price target to $95 from $110 while keeping a Buy rating, and Mizuho cut its target to $90 from $110 with an Outperform rating. Morgan Stanley reduced its target to $110 from $128, citing softer industry demand, while Goldman Sachs lowered its target to $79 from $92 with a Neutral rating.
The analyst cuts reflect soft home-furnishing demand despite Wayfair’s improving unit economics. Recent data from the US Census Bureau showed nonstore retailers, a category including online shopping, rose 12.2 per cent from a year earlier. Bank of America’s Consumer Spend Collective report noted e-commerce spending rose 13 per cent year over year in May, providing a positive signal for the company’s online-heavy model.
