That said, despite Wayfair's perplexing initial drop following those third-quarter results, shares have since rebounded nearly 20% as of this writing, and for good reasons.
For one, third-quarter revenue grew 45% year over year, to $861.5 million, driven by a more than 60% increase in direct retail customers (to 7.4 million), and a roughly 4% increase in average order value, to $244. On the bottom line, that translated to an adjusted loss of $0.54 per share, widening from a loss of $0.13 per share in the same year-ago period. And both figures were well above analysts' consensus estimates, which predicted third-quarter revenue of $849 million and an adjusted loss of $0.49 per share.
What's more, Wayfair confirmed in late November that it enjoyed its strongest ever performance over the crucial peak holiday shopping period, with direct retail gross sales climbing 52% year over year over the five days from Thanksgiving through Cyber Monday.
Unless Wayfair offers another encouraging press release in the meantime, investors will need to wait until next month's formal report for more clarity on Wayfair's full holiday-quarter performance. But as it stands, and as the company continues to outgrow its industry and take market share, it appears Wayfair is exactly where it wants to be.
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