Wayfair expects mid-single-digit Q2 growth but warns of tougher H2 amid weakening demand and rising ad costs

Wayfair is on track for about 5% revenue growth in Q2, supported by improving website traffic and strong performance from its luxury brand Perigold. However, Jefferies remains cautious about the second half of 2026 due to declining consumer purchase intentions and rising advertising costs, which may pressure margins. The company could face challenges as supplier pricing advantages fade and fuel costs rise, potentially limiting sales growth in the latter half of the year. Shares have fallen over 31% this year amid these concerns.