Wayfair Drives Revenue In Q3 As Losses Increase

As it continued a recent pattern of posting higher year-over-year losses, Wayfair continues to push customer experience and market share gains in the third quarter as it achieved significant revenue increases.

Net loss for the quarter was $151.7 million, or $1.69 per diluted share, versus $76.4 million, or 88 cents per diluted share, in the year-before period. Adjusted net loss, excluding one-time charges, was $115 million, or $1.28 per diluted share, versus $56.6 million, or 65 cents per diluted share, in the period a year previous.

Net revenue was $1.71 billion versus $1.2 billion in the year-earlier quarter, while direct retail revenue, generated by the company’s e-commerce websites, increased to $1.69 billion from $1.18 billion in the period year over year. Operating loss was $145.3 million versus $74 million in the quarter a year prior.

“We are pleased to report another quarter of incredibly strong growth with our direct retail business growing 43% this past quarter,” said Niraj Shah, Wayfair CEO, co-founder and co-chairman. “We are delighted with the market share we are winning as we continue to invest in leading the way in bringing customers the best possible shopping experience in our category online. Our customers are responding extremely well to our offering in the U.S. and internationally, with our customer KPIs continuing to strengthen. We are taking a long-term approach to building our business and putting shoppers first by investing further in our logistics capabilities, in our international regions and in scaling headcount to enhance our customer offering in under-penetrated product categories and services.”