• by Sarah Mahoney , Yesterday

After years of financial pressure and uneven performance, Wayfair may be turning a corner. The home furnishings retailer just reported its strongest sales growth and profitability since 2021, and announced plans to open a new 140,000-square-foot store in Denver—its third new large-format location this year—as it continues experimenting with physical retail.

Second-quarter sales climbed 5% to $3.3 billion. Excluding the impact of last year’s exit from the German market, revenue increased by 6%. Net income reached $15 million, compared to a net loss of $40 million in the same period last year.

“The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability,” said Niraj Shah, CEO, co-founder and co-chairman. “As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market. Two decades of this approach have taught us that building great things takes time, but when done with thought, care and prudence, can have a payoff well worth the wait.”

The number of active customers declined 4.5%, to 21 million. However, revenue per active customer rose to $572, up 5.9% year over year.

The Denver store, set to open late next year, marks the Boston-based Wayfair’s first physical entry into the Mountain West region. It follows new locations in Atlanta and Yonkers, New York, as the brand works to position itself more competitively against rivals like Ikea and HomeGoods.

Still, some analysts question whether the company’s strategy deserves the credit. “The growth is very much aligned with wider trends in the market,” wrote Neil Saunders, managing director at GlobalData, citing tariff-driven purchase timing and broader category gains. “We believe the company’s market share was broadly flat over the period.”