Wayfair Inc. (NYSE: W) shares jumped Tuesday after the online home furnishings retailer reported second-quarter results that beat Wall Street estimates. But the move wasn't just about the numbers; it was also about the bears.

With 18% of the public float sold short, the stock was primed for a squeeze. The company has a short float of 14.75 million shares, representing 18.38% of its publicly traded float, an exceptionally high level of bearish positioning. When good news hits, short sellers scramble to cover, and that can send the stock flying even higher.

The company reported its strongest post-COVID U.S. revenue growth, with U.S. sales rising nearly 9% year over year, supported by continued market share gains and momentum across its specialty and premium brands.

Wayfair Earnings Beat Driven By U.S. Growth

Wayfair reported adjusted second-quarter earnings of 95 cents per share, topping the analyst consensus estimate of 90 cents. Revenue increased 7.5% year over year to $3.52 billion, ahead of the Street estimate of $3.47 billion.

U.S. net revenue rose 8.7% to $3.1 billion, while international net revenue slipped 1.3% to $394 million.

Adjusted gross profit increased to $1.06 billion from $986 million a year earlier. Adjusted EBITDA rose to $242 million from $205 million in the prior-year quarter.

Chief Financial Officer Kate Gulliver told Bloomberg that domestic growth was driven primarily by higher order volumes. She said premium banner Perigold posted more than 35% sales growth during the quarter.

Customer Growth Continues

Wayfair ended the quarter with 21.7 million active customers, up 3.3% from a year earlier. Orders delivered increased 6% to 10.6 million, while average order value rose to $332 from $328.

The company finished the quarter with $1.1 billion in cash and cash equivalents.

Premium Brands And Stores Support Expansion

Gulliver said higher-income consumers continue to drive demand, adding that more than 40% of Perigold customers are new to the company.

She also said Wayfair's marketplace model helps reduce exposure to tariffs and higher input costs because suppliers, rather than Wayfair, serve as the importer of record.

The retailer has continued expanding its brick-and-mortar footprint with large-format stores in cities including Chicago and Atlanta. It is also promoting its $29 annual membership program, which offers benefits including cash back and free delivery.

CEO Sees Further Growth

CEO, co-founder and co-chairman Niraj Shah said Wayfair delivered its strongest sequential second-quarter growth since 2020 and its best post-pandemic U.S. revenue growth rate. He added that the company's specialty retail brands grew nearly 20% during the quarter.

Shah said continued strength in the core Wayfair business, along with faster growth from specialty and luxury brands, positions the company for further acceleration as it executes its growth initiatives.

Wayfair Price Action

W Price Action: Wayfair shares were up 19.03% at $106.31 during premarket trading on Tuesday, according to market data.