Wayfair Inc. revenue managed to grow year over year in Q1 despite “persistent category volatility that showed a fourth consecutive year beginning with contraction,” said CEO Niraj Shah.

That growth excludes the impact of sales in Germany, a market Wayfair left in January.

That exit led to a 10.9% revenue decline in Wayfair’s international segment, said chief financial officer Kate Gulliver. However, a “robust performance” from Wayfair’s U.S. business offset that decline, she added.

Wayfair also saw “some temporary impact” from its logistics network, CastleGate, Gulliver said.

“Many of our suppliers accelerated inventory imports as tariff considerations rose in the back half of the quarter,” she said.

In today’s challenging macroenvironment, Wayfair’s strategy “remains clear,” Shah said: continue gaining market share, deepen partnerships with suppliers and invest “judiciously” in high-ROI growth initiatives. Some of the ways Wayfair is sticking to that plan are through Wayfair Rewards, its Verified Program and its physical retail efforts.

Wayfair ranks No. 9 in the Top 2000 Database. The Top 2000 is Digital Commerce 360’s ranking of North American online retailers by their annual ecommerce sales. Wayfair is also the highest-ranking Housewares & Home Furnishings retailer in the Top 2000.

Wayfair addresses tariffs

“Tariffs are clearly top of mind for everyone,” Shah said.

Wayfair “saw many suppliers lean into CastleGate” to bring inventory into the U.S. before duty taxes increase, Gulliver said.

Shah said that like other retail channels, Wayfair’s platform allows suppliers to choose the wholesale price they want to charge the retailer. Then, Wayfair will “layer” a take rate on top of that, he said. Suppliers who offer more competitive wholesale prices often succeed on Wayfair because it translates directly to better prices for customers, he added.

“So when an incremental cost like a tariff enters the system, suppliers have to make a decision on how much they want to pass through versus bearing themselves,” Shah said.

Meanwhile, Wayfaur has already diversified its supply chain over the years, he said. Anti-dumping duties on wood furniture products from China in the early 2000s, some of which were more than 50%, began a migration of production out of China, he said. Then, a 25% duty hit home furnishings products more broadly in 2019 and “never went away.”

“We have suppliers that manufacture in over 100 countries across the world, including a substantial base of production that is done domestically,” Shah said. “Across dozens of our top classes, such as area rugs, beds, dining chairs, end tables, and more, we have thousands of items made in the U.S. These products come from the thousands of our suppliers that manufacture here in the [United] States.”

He added that he expects Wayfair to navigate the tariff environment well.

“Periods of disruption have historically been moments where Wayfair pulls ahead, and today is no different,” Shah said. “We’ve deliberately built a platform that thrives in dynamic conditions — flexible, resilient, and efficient.”

Wayfair revenue in Q1

In Q1, Wayfair revenue was close to flat. Wayfair Q1 revenue increased $1 million year over year to reach a total of $2.7 billion.

And $2.4 billion of that came from the U.S. That’s a 1.6% year-over-year increase from Wayfair revenue in Q1 2024, or $38 million more.

International Wayfair revenue decreased $37 million year over year in Q1, which the retailer attributed to exiting the German market. International revenue was $301 million, a 10.9% decrease.

Customer service and merchant fees accounted for 3.8% of Wayfair revenue in Q1.

In the last 12 months, Wayfair revenue per active customer grew 4.7% year over year to reach $562. Wayfair had 21.1 million active customers in Q1, a 5.4% decrease from the prior year.

Wayfair delivered 9.1 million orders in Q1, down 5.2% from the year-ago period. And repeat customers placed 80.5% of orders Wayfair delivered in Q1 of both 2025 and 2024. However, they placed 7.3 million orders in Q1 2025, a 5.2% year-over-year decrease.

Wayfair’s average order value in Q1 2025 was $301, up from $285 the year before. And 63.4% of all orders Wayfair delivered came from a mobile device in Q1. That compares to 63.1% the prior year.

Wayfair in-house ad service

Advertising accounted for 12.6% of Wayfair Q1 revenue, Gulliver said. That’s down “quite a bit from Q4,” she added.

Internal experts at Wayfair run advertising campaigns for the retailer’s suppliers, Shah said.

And many of those suppliers are newer to digital advertising than large consumer brands, he added. Wayfair has seen the number of suppliers spending at least 1% of their revenue on advertising increase by more than 40% in the past year, Shah said.

“We’re constantly running tests to measure the impacts of higher ad load on conversion, ensuring that we can continue to grow our footprint while also driving incrementality,” he said.

Wayfair’s advertising teams work with suppliers to help drive enough volume to optimize production flows, Shah said. They also help with product launches.

“In a period where margin pressure is high, whether from tariffs or other factors, advertising becomes a way for suppliers to actively manage demand levels,” Shah said.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Wayfair revenue.