Wayfair shares rally on upbeat Q3 results, increased spending by repeat customers

[Wayfair Store]
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Repeat customers helped fuel an 8% increase in sales for Wayfair (NYSE:W [https://seekingalpha.com/symbol/W]) during the third quarter, [https://seekingalpha.com/news/4509197-wayfair-non-gaap-eps-of-0_70-beats-by-0_26-revenue-of-3_1b-beats-by-90m] beating Wall Street’s expectations and driving shares up by double-digits in Tuesday’s premarket trading.

“The third quarter was a great success,” said Wayfair CEO Niraj Shah, pointing to the company’s accelerated revenue growth, 5% increase in delivered orders and 70% year-over-year gain in adjusted EBITDA.

The increase in sales coupled with tight expense management enabled Wayfair (NYSE:W [https://seekingalpha.com/symbol/W]) to earn an adjusted profit of $0.70 per share, more than triple from a year ago and $0.26 better than expected.

During the quarter, Boston-based Wayfair (NYSE:W [https://seekingalpha.com/symbol/W]) saw the number of active customers down 2.3% during the quarter, but spending by customer increased 6%, orders delivered increased 5.4% and the average order increased by $7. Additionally, repeat customers placed 7.9M orders, accounting for 80.1% of total orders, an increase of 20 basis points from last year.

Shares last traded more than 12% higher, setting the stock up to set a new 3 1/2-year high.

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