Wayfair continued its sales growth momentum in the third quarter, but earnings remained elusive as the retailer posted a steeper net loss.
In the third quarter, Wayfair.com recorded a net loss of $76.4 million, or 88 cents per diluted share, versus a net loss of $60.9 million, or 72 cents per diluted share, in the year-earlier quarter. Adjusted net loss was $56.6 million, or 65 cents per diluted share, versus $45.7 million, or 54 cents per diluted share, in the year-prior quarter. The adjusted net loss per diluted share exceeded a MarketBeat-published analyst average estimate of 47 cents.
The company posted third quarter net revenue of $1.2 billion versus $861.5 million in the previous third quarter. Loss from operations was $74 million versus a loss from operations of $61.6 million in the 2016 quarter. Wayfair noted that direct retail net revenue, consisting of sales generated primarily through its sites, advanced $348.8 million in the third quarter to $1.18 billion, up 41.9% year over year.
The number of active customers in the direct retail business reached 10.3 million, an increase of 39.2% year over year. The net revenue per active customer was $408, up 0.5% year over year. Repeat customers placed 61% of total orders in the third quarter versus 56.9% in the 2016 period. Orders delivered in the third quarter were 4.7 million, an increase of 38.1% from the period a year previous. The average order value was $250 for the quarter compared to $244 in the period a year before. In the third quarter, 45.4% of total orders delivered in the company’s direct retail business were placed via a mobile device versus 40.3% in the 2016 period.
“We are very pleased with the company’s strong growth and momentum as we continue to reinforce our position as a clear online leader in the massive home category,” said Niraj Shah, Wayfair CEO, co-founder and co-chairman. “We are already quickly outpacing the shift of dollars online in our category and taking a high proportion of market share as customers embrace our shopping experience. Through advancements across our supply chain network, we are now able to promise our customers a more seamless shopping experience and even faster delivery times. The majority of large parcel orders such as sofas, dining tables, bathroom vanities, chandeliers and more are now flowing through the Wayfair-controlled delivery network, which means we can ensure a flawless experience from start to finish for even the largest and heaviest products. We are also able to leverage our enhanced logistics network and greater efficiencies to offer our customers creative and compelling promotions in time for the holidays in the U.S., Canada and Europe. We believe these exciting initiatives and many others across all areas of the business will continue to propel significant growth for Wayfair as we move into 2018.”