Wayfair saw its sales in the fourth quarter pass $1 billion for the first time, although its net loss continued to grow.
In a fourth quarter when it surpassed a billion dollars in sales for the first time, Wayfair posted a net loss of $72.8 million, or 83 cents per diluted share, versus $44 million, or 51 cents per diluted share, in the period a year earlier.
Adjusted for one-time charges, net loss was $50.9 million, or 58 cents per diluted share, versus an adjusted net loss of $29.2 million, or 34 cents per diluted share, in the quarter a year prior. Wayfair beat a MarketBeat-published analyst average estimate that called for a loss of 79 cents per adjusted diluted share in the quarter.
Net revenue was $1.44 billion versus $984.6 million in the previous fourth quarter. Direct retail net revenue, primarily from Wayfair’s five major websites, was $1.42 billion, up 48% from the quarter in the year previous. Direct revenue in the U.S. was $1.23 billion, up from $858.6 million year over year.
For the full fiscal year, Wayfair posted a net loss of $244.6 million, or $2.81 per diluted share, versus $194.4 million, or $2.29 per diluted share, in the year earlier. Adjusted net loss was $171.5 million, or $1.97 cents per diluted share, versus an adjusted net loss of $141.8 million, or $1.67 per diluted share, in the fiscal year prior.
Net revenue was $4.72 billion versus $3.38 billion in the fiscal year before. The 2017 fiscal year was the first when Wayfair sales surpassed $4 billion. Direct retail net revenue was $4.6 billion, up 42.5% year over year.
“We are pleased to report another year of incredible growth with total net revenue up $1.3 billion to $4.7 billion in 2017, as well as a record fourth quarter with the largest year-over-year increase in direct retail dollars in company history,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “Our long-term investing approach and customer-centric mentality continue to pay off as we outpace the shift to online spending in our category and gain significant market share. Technology, combined with continuous testing and innovation, allows us to constantly enhance the shopping experience while quickly scaling our operations. This experience is resonating with our customers across the U.S. and in Canada, the United Kingdom and Germany with our international business completing a particularly strong year. Across North America and Europe, we continue to expand the footprint of our Wayfair delivery network and CastleGate, offering faster and more seamless delivery across more products and regions than ever before. As we enter 2018 with tremendous strength, we look forward to building upon this momentum as we lead the way in creating the best possible shopping experience for home.”