Wayfair’s revenues continued to surge in its first quarter, but the home e-tailer’s net loss also increased.
For the first quarter ended March 31, Wayfair posted a net loss of $56.3 million, or 66 cents per diluted share, versus a loss of $41.2 million, or 49 cents per diluted share, in the period the year before. Adjusted net loss was $41.4 million, or 48 cents per share, versus an adjusted net loss of $30.2 million, or 36 cents per diluted share, in the quarter a year prior.
Direct retail net revenue, consisting of sales generated primarily through Wayfair’s sites, gained 32.1% in the quarter year over year to $940.4 million. Total net revenue advanced 28.6% to $960.8 million from last year’s period.
Wayfair said that the number of active customers engaged with the direct retail business reached 8.9 million as of March 31, a 45.8% from the end of last year’s first quarter. Repeat customers placed 60.4% of total orders in the 2017 first quarter versus 55.4% in the 2016 quarter, and repeat customers placed 2.5 million orders in the period, up 53.3% year over year. First quarter orders delivered totaled 4.2 million, an increase of 40.6% from the year-earlier period. Average order value was $223 compared to $238 in the 2016 quarter. In the first quarter, 44.6% of total orders delivered as part of Wayfair’s direct retail business arrived via a mobile device, compared to 38.6% in the 2016 period.
“We are very pleased to report strong momentum in the first quarter of 2017 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,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “The home category is driven by visual imagery and discovery with customers responding most positively to an inspirational shopping experience that brings product to life and solves traditional retail challenges in unexpected and compelling ways. 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. 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.”