• Clint Engel

Wayfair’s 1Q revenue, losses climb

BOSTON — Wayfair’s first quarter net loss increased to $56.5 million, but revenue neared $1 billion for the period as the home furnishings e-commerce giant continued to take market share.

The loss for the period ended March 31 was up 37.2% from a net loss of $41.2 million for the same period a year ago. On a per share basis the loss increased 34.7% to 66 cents from 49 cents. The company’s non-GAAP net loss of 48 cents per share beat analyst estimates by 10 cents, and shares were up about 13% in pre-market trading Tuesday.

Wayfair’s net revenue increased 28.6% to $960.8 million from $747.3 million a year ago. Its direct retailer net revenue was up 32.1% to $940.4 million.

At the end of the quarter, the e-tailer’s number of active customers reached 8.9 million, up 45.8% from the same period last year, it said. Repeat customers placed 60.4% of total orders, compared with 55.4% in the first quarter of 2016, while the average order value dipped to $223 from $238.

Wayfair said 44.6% of orders delivered during the period were placed on mobile devices, compared with 38.6% of the total a year ago.

In a release, Wayfair CEO, Co-chairman and Co-founder Niraj Shah said the company was pleased with its momentum “as we continue to gain significant traction across our key strategic initiatives and steadily increase our market share in the $600 billion home category across North America and Europe.

“The house brands that we are building are good examples of our best in class merchandising and technology capabilities that showcase the vast selection we offer our customers,” he added.

“In addition, our investment in a proprietary logistics network customized for furniture and décor is paying off as we continue to increase sales conversion through faster delivery and greater customer satisfaction. With technology and innovation as the backbone of our business, we feel confident that we have built a category-leading retail brand that is exceptionally well positioned for long term growth and continued success.”

Wayfair Inc.
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 3/31 2017 2016 % change
Revenue $960,825,000 $747,348,000 28.6%
Adjusted EBITDA ($20,896,000) ($20,960,000) (0.3%)
Net income ($56,539,000) ($41,205,000) (37.2%)
Earnings per share ($0.66) ($0.49) (34.7%)
Clint EngelClint Engel | Senior Retail Editor, Furniture Today

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