3 Reasons Wayfair Can Survive the Great Reopening
Wayfair's (NYSE: W) second-quarter earnings results were somewhat muted, as revenue posted a decline of 10% year over year. This was expected, however, as the company faces tough year-over-year growth comparisons in the near term. In the third quarter of 2020, revenue surged 66% year over year, but analysts expect Wayfair to grow revenue by just 1.8% in the next quarter.
The economy is more fully open than this time a year ago, and that makes forecasting near-term results very difficult. However, it is encouraging that Wayfair's second-quarter revenue was still up 28% on a two-year compound annual growth rate basis, which indicates what growth will look like once Wayfair moves beyond the year-over-year comparisons with the start of the pandemic.
Despite the recent decline in revenue, there are three reasons Wayfair is looking very strong as the economy reopens.
Source Fool.com
