Wayfair posts stronger first quarter, signaling home-category demand remains firm

Shoppers are still buying for the home, and they are doing it in ways Big Lots should recognize: smaller refreshes, practical upgrades and value-driven decor rather than big-ticket splurges. Wayfair’s first quarter showed that demand can hold up even in a pressured economy, with the category still drawing customers who want price, convenience and a usable selection.

Wayfair reported $2.9 billion in total net revenue for the quarter, up 7.4% from a year earlier. U.S. net revenue reached $2.6 billion, also up 7.5%, while active customers climbed to 21.4 million as of March 31, up 1.4% year over year. The company also said last-twelve-month net revenue per active customer rose to $591, up 5.2%, and orders per customer ticked up to 1.88 from 1.85. Orders delivered increased to 9.4 million, up 3.3%.

The quarter was not just about volume. Wayfair said gross profit reached $880 million, equal to 30% of revenue, and the improvement in profitability helped narrow its net loss. Management described the period as one of strong share capture and a return to active customer growth, a sign that the company believes it is taking business from competitors even in a volatile macro backdrop.

For Big Lots, that matters because the chain is not competing with Wayfair on the same model, but it is fighting for the same household spending. Big Lots entered voluntary Chapter 11 proceedings on September 9, 2024, in the U.S. Bankruptcy Court for the District of Delaware after years of strain tied to low-income shoppers and weak demand for low-priced furniture and decor. At the time, it had about 1,392 stores in 48 states and roughly 27,700 employees.

Big Lots later announced a strategic transaction with Gordon Brothers and Variety Wholesalers on December 27, 2024, aimed at preserving the brand, hundreds of stores and thousands of jobs. Variety Wholesalers planned to acquire and operate roughly 200 to 400 stores and two distribution centers.

Wayfair’s results reinforce a practical lesson for Big Lots workers: home demand is not dead, but the fight is being won by retailers that make the offer easy to understand and hard to pass up. In stores, that comes down to the basics: the right mix, solid in-stock levels, clean presentation, and clear value on furniture, decor, mattresses and household essentials. The customer is still there. The retailers that keep winning are the ones that give that shopper a reason to walk in, buy and return.