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A press release from Wayfair reveals that the e-commerce company sees an increase in business when people stay inside to avoid coronavirus from China. This includes more shopping for home goods, which is true for both US and international customers.
Revenues are also increasing by almost 20% compared with the same period last year in early March. This is in line with growth in January and February, but that number more than doubled at the end of March. The trend also seems to continue until April.
The Wayfair news release also includes some details about its upcoming earnings report. This is what the company expects to meet or exceed its previously issued guidance. This includes its revenue guidance of 15% to 17% growth and consolidated EBITDA margin range of non-GAAP adjusted to -7.3% to -7.8%.
Niraj Shah, co-founder, co-chairman and CEO of Wayfair, said this about the news that moved the W share higher.
“We are encouraged by our increasing sales momentum, but are still very focused on our plan to quickly achieve profitability and positive free cash flow. The additional capital we raise, but not strictly necessary, should only improve our ability to successfully navigate through any market background. ”
Wayfair notes that it will publish its first quarter 2020 earnings report on May 5, 2020 before the markets open. There will also be a conference call reviewing the results at 8:00 Eastern Time.
The W share increased by 38.8% as of Monday afternoon.
At the time of writing, William White had no position in any of the above securities.