Piper Jaffray: Wayfair's 'Way Day' Could Land Retailer New Customers

With Wayfair Inc. (NYSE: W)’s new retail holiday Way Day set for April 25, Piper Jaffray analysts see an opportunity for the online retailer to lift revenue and draw new customers.

The Analyst

Peter Keith of Piper Jaffray reiterated an Overweight rating on Wayfair with a $92 price target.

The Thesis

Way Day, is scheduled to begin at midnight on April 25 this year. Way Day will offer Black Friday-equivalent prices on over 70,000 products and provide free shipping as well as triple reward points, Keith said in a Wednesday note.

Way Day could be an opportunity for Wayfair to draw new customers by focusing on items eligible for two-day shipping, Keith said.

“Customers (new and repeat) focusing on promoted items are likely to experience Wayfair's best-in-class logistics for the home furnishings category — which in turn could/should drive more repeat business in the future.”

Feedback so far has been positive and customers have expressed interest in trying Wayfair for the first time or visiting again, the analyst said.

Keith predicts that Way Day could be a catalyst for a Q2 revenue lift and said that when Amazon.com, Inc. (NASDAQ: AMZN) launched a similar initiative with Prime Day in 2015, the company saw a strong acceleration in unit growth.

“With Way Day running a full week before the scheduled Q1 earnings announcement May 2, Wayfair should be able to provide a healthy/positive Q2 quarter-to-date update.”

Price Action

At the time of publication, Wayfair was trading up 2.61 percent at $70.02

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