Wayfair Gains Market Share Despite Weak Furniture Market
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Wayfair's Q3 revenue grew 4% despite weak home furnishing market, indicating market share gains.
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Gross margin expanded over 200 basis points to 31.2% due to improving costs, merchandising and mix.
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Early indications point to further market share gains, with Q4 revenue guidance flat to up low single digits.
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Plan to lower $99 fair value estimate by mid-single digit rate due to weak consumer spending outlook.
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Longer-term outlook includes 5% sales growth and low-single digit adjusted EBITDA margins over next 3-4 years.