Wayfair Q2 Sales Surge While Net Loss Builds

Wayfair reported strong double-digit growth in the second quarter, but the online retailer also reported a jump in net loss for the period ended June 30.

Direct retail net revenue increased $538.5 million to $1.6 billion, up 48.8% year over year. Net loss for the quarter was $100.7 million as compared to a net loss of $38.9 million in the comparable quarter the prior year.

“Our long-term investments in further developing our logistics networks, international business and in scaling headcount to improve our product and service offerings are resonating strongly with new and returning customers,” said Niraj Shah, Wayfair’s CEO. “By focusing on bringing customers the best possible experience in shopping for the home, from the home, we are leading the way in our category.”

Shah noted that Way Day, its Black Friday-style one-day sales event held in April, was the biggest revenue day in the company’s history. In addition, the number of active customers for Wayfair’s direct retail business grew 34% to 12.8 million, and orders delivered in the quarter were 6.5 million, up 50.8% year over year. However, the average order value in the quarter was down $4 to $254.