Image Source: Pixabay

Wayfair Inc (W) reported a second-quarter FY21 sales decline of 10.4% year-on-year, to $3.86 billion, missing the analyst consensus of $3.96 billion.

International net revenue increased 16.3% to $0.8 billion, while the U.S. revenue declined 15.2% to $3.1 billion.

The number of active customers reached 31.1 million as of June 30, 2021, a 19.6% increase Y/Y. The average order value grew 22.5% Y/Y to $278.

In Q2, 59.4% of total orders delivered were placed through a mobile device, versus 60.6% last year. Adjusted EPS of $1.89 beat the analyst consensus of $1.17. Adjusted EBITDA of $310.8 million decreased 29.3%. Gross profit fell 14.6% Y/Y to $1.1 billion with a profit margin of 29.2%.

The operating margin was 3.8%, and operating income for the quarter declined 51.5% to $145.2 million. The company held $2.1 billion in cash and equivalents as of June 30, 2021. Net cash from operating activities amounted to $275.4 million with a free cash flow of $206.9 million.

"While the current macro environment is dynamic, the home remains a high priority for our customers and longer-term tailwinds to online category growth are firmly in place," said CEO Niraj Shah.

Price action: W shares are trading higher by 11.17% at $279.26 on the last check Thursday.