Wayfair reported strong double-digit sales growth in the fourth quarter, but the home product retailer also saw its net loss grow for the three months ended December 31 as well.
Direct retail net revenue was $1.99 billion, up from sales of $576.6 million in the comparable quarter the previous year. Net loss in the quarter was $143.8 million compared to a net loss of $72.8 million in the fourth quarter of the prior year.
“We remain focused on our long-term approach to investing in the business and believe the company’s outsized growth at scale is a testament to the strength of our brand and platform as we redefine the shopping experience in our category,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
The number of active customers in Wayfair’s direct retail business reached 15.2 million as of December 31, an increase of 37.9%. The company in the fourth quarter delivered 8.8 million orders, an increase of 42%.
For the full fiscal year, direct retail net revenue was $6.7 billion, an increase of 44.7% year-over-year. Net loss was $504 million versus a net loss of $244.6 million in the prior fiscal year.
Looking ahead, Shah said Wayfair continues to expand its proprietary logistics infrastructure to take greater control of its inbound supply chain. “This enables us to offer faster and more seamless delivery to customers and putting suppliers in the best possible position to scale their businesses as spend in our category moves online at pace,” he said. “In 2019, we look forward to building upon the strength we see across our business today as we continue to innovate in creating the best possible shopping experience for home.”