Wayfair Pushes Sales Higher In Q3 But Losses Grow

As it continues to push revenue growth, Wayfair reported bigger sales but also bigger losses in third quarter results affected by its expansion investments and, to some extent, by tariffs.

For the third quarter, Wayfair posted a net loss of $272 million, or $2.94 per diluted share, versus $151.7 million, or $1.69 per diluted share, in the year-before period. Adjusted net loss, excluding one time charges, was $206.7 million, $2.23 per diluted share, versus adjusted net loss of $115 million, or $1.28 per diluted share, in the quarter a year earlier.

Net revenue was $2.31 billion versus $1.71 billion in the year-previous quarter. Loss from operations was $259.7 million versus a loss from operations of $145.3 million, in the period a year prior.

Direct revenues from operations in the U.S. was $1.96 billion versus $1.46 billion in the previous third quarter, while direct revenue from activity in the company’s international segment advanced to $338.8 million from $232.4 million in previous third quarter.

“We are pleased to report third quarter direct retail net revenue growth of $607 million up 36% year over year,” said Niraj Shah, Wayfair CEO, co-founder and co-chairman. “This period of strong growth took place, despite some short-term tariff related volatility. We could not be more confident in the future growth of the business. Our business continues to benefit from meaningful long-term investments that directly and dramatically impact the customer experience further propelled by a massive structural shift in shopping behavior from offline to online. To further cement our leadership position and growth trajectory, we have continued to expand our logistics network to meet a high level of customer demand in both North America and Europe and, among other initiatives, are driving deeper penetration in emerging category opportunities across the business. We are excited for the upcoming holiday season and expect to continue to disrupt the current retail landscape through innovative solutions to traditional customer pain points as we solidify Wayfair’s position as the best place to shop across all home-related categories.”