Wayfair skyrockets 41% after saying revenue doubled in March as coronavirus drove online furniture shopping
- Wayfair said Monday its gross revenue doubled in March, fueled by online shopping amid the coronavirus pandemic.
- Shares of the company surged 41% Monday.
- The company now expects to meet or exceed its previous guidance for fiscal first quarter revenue growth.
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Shares of Wayfair surged 41% Monday after the company said that business is going well amid the coronavirus pandemic.
Wayfair's gross revenue growth was about 20% at the beginning of March, similar to January and February, according to a statement. But by the end of March, the rate had more than doubled, the company said. Wayfair said the trend has continued in April.
"We are encouraged by our increasing sales momentum, yet remain highly focused on our plan to rapidly reach profitability and positive free cash flow," said Niraj Shah, Wayfair CEO. "The additional capital we are raising, though not strictly necessary, should only enhance our ability to successfully navigate through any market backdrop."
Now, the company expects to meet or exceed its previous guidance of 15% to 17% revenue growth in the fiscal first quarter of 2020. The company added that it's "making solid early progress" against initiatives to lead it to profitability. It reports earnings on May 5.
The company also addressed its actions to curb the spread of COVID-19 and keep employees and customers safe.
"We are closely monitoring the current market as we all respond to the threat of COVID-19. Wayfair's e-commerce model is uniquely suited to serving customers' very real needs at this challenging time," Shah said.
Wayfair's employee base is working from home while "fulfilment, logistics and transportation facilities are fully operational," according to the statement. The company has implemented no-contact delivery, encourages drivers to wash hands, and has instituted temperature checks at several locations, it said. It also rolled out emergency paid time off for workers who are not feeling well, it said.
The company also announced today $535 million in convertible notes as a step to "further strengthen its balance sheet and optimize its liquidity position to allow it to continue to serve customers from a position of operational and financial strength."
Even with today's gains, Wayfair is down roughly 21% year-to-date.
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