Amid the COVID-19 pandemic, Wayfair turned a second quarter profit as sales soared.
Net income in the quarter ended June 30 was $273.9 million, or $2.54 per diluted share, versus a net loss of $181.9 million, or $1.98 per diluted share, in the year-before period.
Adjusted for one-time events, net income was $375.1 million, or $3.13 per diluted share, versus a net loss of $124.3 million, or $1.35 per diluted share, in the quarter a year previous. Wayfair topped a Zacks Investment Research analyst consensus second quarter adjusted earnings per share estimate of 89 cents.
Net revenue was $4.3 billion versus $2.34 billion in the year-earlier period.
Niraj Shah, Wayfair co-founder, co-chairman and CEO, said, “We are all currently living and operating in uncertain times, which are dominated by the global pandemic as well as pressing social issues. In this environment, Wayfair remains fully committed to supporting our customers, our employees, and our broader communities, while continuing to operate with excellence. The second quarter was a very strong period for Wayfair. Our strategic long-term investments positioned us well to serve our customers and to quickly adapt during a challenging time. We experienced unprecedented demand in Q2 and saw record numbers of new and repeat customers choose Wayfair. Our proprietary logistics network, strong supplier partnerships, and nimble and dedicated team of more than 16,000 employees enabled Wayfair to consistently serve our customers at a time they needed us most, both in North America and Europe. The plans that we put in place in late 2019, combined with these factors, translated to a powerful profitability inflection, and we generated over $1 billion in free cash flow in the quarter. Our financial performance in Q2 also highlighted the inherent structural profitability of the business, as we begin to pair our strong growth characteristics with consistent profit delivery while continuing to make investments with a long-term orientation.”