Not very well, though (and I don't think BMW sells wagons in the US anymore). They are positioned as "cool & snobby", rather than "useful".
Peak wagon was the P3 Volvo V70/XC70, built on the Ford EUCD platform [1], which had amazing utility via tie-down rails, 40/20/40 fold-flat middle seats, and a front passenger seat that folded flat to create a uniform load floor for carrying 10 foot long boards. They were better at being useful than the Subaru Outback and yet had higher quality leather and carpets. And don't forget the vertical rear hatch, giving more interior space with a larger window (and larger rear wiper!) that gave them excellent rearward visibility.
Peak wagon was the P3 Volvo V70/XC70, built on the Ford EUCD platform [1], which had amazing utility via tie-down rails, 40/20/40 fold-flat middle seats, and a front passenger seat that folded flat to create a uniform load floor for carrying 10 foot long boards. They were better at being useful than the Subaru Outback and yet had higher quality leather and carpets. And don't forget the vertical rear hatch, giving more interior space with a larger window (and larger rear wiper!) that gave them excellent rearward visibility.
[1] https://en.wikipedia.org/wiki/Ford_EUCD_platform