Wayfair (W) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Strategic shift and financial discipline

• Focus shifted from pure growth to profitable growth, with significant cost reductions in OpEx, SG&A, and CapEx since late 2022.

• Achieved mid-single digit adjusted EBITDA margins after addressing post-COVID profitability challenges.

• Targeting 10%+ adjusted EBITDA margins through gross margin expansion and SG&A leverage, with supplier advertising and logistics as key drivers.

• Supplier advertising is expected to reach 3-4% of revenue, providing 2-3 points of gross margin lift.

• Investments in pricing are made selectively to maximize gross profit dollars, especially during category downturns.

Competitive positioning and market dynamics

• Gained share alongside Amazon and HomeGoods, with strengths in selection, delivery, and home-focused customer experience.

• Unique logistics for large and multi-carton parcels and tailored customer service differentiate from broadline competitors.

• Marketplace model with 20,000+ suppliers enables flexibility and resilience against tariff and supply disruptions.

• No discernible price inflation observed recently; suppliers are incentivized to maintain competitive pricing.

• Marketplace structure allows margin protection even amid cost changes.

Growth drivers and future initiatives

• Near-term growth from Perigold (high-end brand) and B2B business, both contributing positively.

• Mid-term drivers include the new Wayfair Verified program and a growing loyalty program, both aimed at increasing conversion and share of wallet.

• Long-term growth expected from physical retail expansion, with a second large-format store opening in Atlanta in early 2026.

• Over 50% of in-store customers are new, and physical retail shows a positive halo effect on regional sales.

• Initiatives like loyalty and product verification are expected to help rebuild active customer numbers as order volumes recover.