Wayfair (W) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Share gain drivers and strategic initiatives

• Share gains accelerated in late 2024 and are expected to continue through 2025, driven by a return to core strengths and new initiatives.

• Loyalty program launched in October 2024 is increasing purchase frequency and expanding spend in higher-frequency categories.

• Wayfair Verified, launched summer 2024, helps customers navigate the large catalog by highlighting top products.

• Storefront experience improved after replatforming (2021–2024), enabling faster site changes and enhanced delivery options like Delivery Plus.

• Ongoing improvements in delivery and site experience, combined with loyalty and product curation, are key to continued share gains.

Loyalty program performance and customer behavior

• Loyalty members are making more frequent purchases, with most buying three or more times a year.

• Renewal rates for the loyalty program are strong, indicating sustained engagement beyond initial project-based signups.

• Loyalty incentives include free shipping on smaller orders and exclusive promotions in targeted categories.

Financial strategy and margin outlook

• Targeting over 10% Adjusted EBITDA margin, up from break-even in 2023 and over 6% currently.

• Investments in loyalty and marketing are designed to optimize gross profit and contribution margin, supporting EBITDA growth.

• Marketing spend is held at 15% to balance contribution margin and EBITDA objectives.