W Q3 FY26 earnings call: key takeaways

• New customer orders up over 14%, another post-pandemic record (9:36)
• Loyalty program helped grow orders faster while spending less on advertising (16:18)

Results vs expectations

What changed since last quarter

• Guidance for Q4 was not provided, but the company expects contribution margin to return to around 15%. (1:28:24)
• The company raised its focus on loyalty programs and their impact on customer retention and profitability. (58:24)
• The company noted that international markets are lagging in implementing U.S.-based strategies, but there is potential for improvement. (1:31:14)

What analysts pressed on

• Whether the company's gross margin will fall below 29.5% next year due to reactive factors like discounts from loyalty programs. (1:40:23)
• How the company plans to sustain its contribution margin while growing profit dollars faster than revenue. (1:40:23)
• Concerns about the impact of macroeconomic factors like high gas prices and election spending on the home furnishings market. (1:15:54)

In their words

• We're very excited by the trajectory we're on and we're still in the early innings. (9:36)
• We believe that what you're going to find is most customers are really going to want to be the ones who then explore. (1:34:56)
• We do a lot of detailed analysis underneath that to understand the lift. (1:45:12)