Wayfair Sees Q1 Sales Momentum But Loss Grows

Wayfair’s first quarter net revenue and revenue derived from website sales in the U.S. both surpassed a billion dollars for the first time, but the company’s losses almost doubled during the period.

For the first quarter ended March 31, Wayfair posted a net loss of $107.8 million, or $1.22 per diluted share, versus a net loss of $56.5 million, or 66 cents per diluted share, in the year-earlier period.

Wayfair adjusted net loss, excluding one-time charges, was $80.4 million, or 91 cents per diluted share, versus an adjusted net loss of $41.4 million, or 48 cents per diluted share, in the year-prior period. Despite the deeper net loss, loss per adjusted diluted share topped a MarketBeat-published analyst average estimate, which placed the loss at $1.16.

Net revenues were $1.4 billion versus $960.8 million in the year-previous period. Direct revenue derived primarily from Wayfair’s e-commerce websites in the U.S. was $1.19 billion versus $837.6 million, in the year-before quarter.

The number of active customers engaging the Wayfair direct retail business reached 11.8 million as of March 31, an increase of 33.2% year over year. Repeat customers placed 64.3% of total orders in the 2018 first quarter versus 60.4% in the 2017 period. First quarter average order value was $236 compared to $223 in the 2017 period.

“Our direct retail business continues to grow at a strong rate, both in the U.S. and internationally, as our customers benefit from the investments we have been making across our business and reward us with their loyalty and spending,” said Niraj Shah, Wayfair CEO, co-founder and co-chairman. “We are delighted with this momentum as we continue to lead the way in bringing customers the best possible shopping experience in our category online. We are really pleased with the growth we are seeing across our business and the market share gains this growth represents. Most recently, we were excited to see the success of Way Day as we offered our customers a compelling shopping event that was well-timed for shoppers looking to refresh their homes for the spring season. Overall, we are delighted with how the business performed in the first quarter and are excited to build on this strength moving forward.”