Wayfair Inc. shares hit a new high recently as a result of fourth quarter sales. The company’s sales were up 40%, beating the Street’s predictions. The recent government shutdown and trade negotiations between China and the United States upset the markets, but this company seems to be unfazed. As of Friday, February 22, the stock was up 34% in New York. The S&P 500 was up less than 1%.
During the fourth quarter, about 2/3 of Wayfair’s orders were from repeat customers. Order values also rose during this time period, leading to a new record for the home goods and furniture company. During the holidays, Wayfair’s sales increased by almost 60%.
In general, e-commerce has captured business from brick-and-mortar stores. Analysts expect Wayfair’s success to continue as a result of their willingness to invest in advertising. The company is known for personalized marketing, price leadership, and best-in-class selection.
In 2018, the stock increased 12%, after wild swings including a 90% gain and double-digit losses. Competition from Overstock didn’t slow them down in 2018.
The company plans to expand into various niches. They recently delved into vanities, and plan to expand their home improvement and home furnishings categories. The company has spent more money than it earned during the past five years.