Online-first homewares retailer Wayfair is gaining momentum through strong sales performances in the US, particularly among specialty brands.

Its second fiscal quarter of the year brought $3.5 billion in revenue, up 7.5 per cent year-on-year. This was led by an 8.7 per cent increase in the US, while international sales fell by 1.3 per cent.

“We saw the best sequential growth we’ve seen in a Q2 since the second quarter of 2020,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair.

“In fact, revenue growth in the US was the best we’ve seen in the entire post-Covid period, with nearly 9 per cent year-over-year revenue growth, continuing the high single-digit share spread we’ve held since last fall.” 

Wayfair’s specialty retail brands grew by nearly 20 per cent in the quarter. The Perigold brand grew by more than 35 per cent. 

Neil Saunders, the MD of insights company GlobalData, said the development of Wayfair’s product portfolio has aided its growth,

“It is to Wayfair’s credit that it has developed a tiered portfolio of brands that can cater for these needs,” he added. “Growth in the core business remains reasonable, although it is somewhat more impacted by a degree of skittishness among some lower- and middle-income consumers. 

“However, our data suggest that Wayfair is still acquiring new shoppers as people turn to it for its wide selection and its broad spectrum of prices.

“Alongside this, repeat custom is also up – which is helpful as it relies less on expensive advertising, which is something Wayfair is trying to bring under control,” he concluded.