Online furniture retailer’s loss widens in Q3
Despite soaring sales, Wayfair’s net loss got deeper during the third quarter.
For the quarter ended Sept. 30, Wayfair reported a net loss of $76.4 million, compared to $60.9 million for the same period last year.
The adjusted net loss per diluted share was $0.65, which exceeded an analyst average estimate of $0.46, according to The Street.
On a positive note, direct retail net revenue, which consists of sales generated primarily through Wayfair’s sites, reached $1.2 billion, a 41.9% year-over- year (YOY) increase. This $348.8 million jump was in line with the Street’s projections.
Meanwhile, total revenue increased $336.7 million to $1.2 billion, up 39.1% year over year. The number of active customers in Wayfair’s direct retail business reached 10.3 million, an increase of 39.2% YOY. Repeat customers placed 61.0% of total orders in the third quarter of 2017, compared to 56.9% in the third quarter of 2016.
"We are very pleased with the company’s strong growth and momentum as we continue to reinforce our position as a clear online leader in the massive home category," noted Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
“Through significant advancements across our supply chain network, we are now able to promise our customers a more seamless shopping experience and even faster delivery times for millions of products,” he added. “The majority of large parcel orders such as sofas, dining tables, bathroom vanities, chandeliers and more are now flowing through the Wayfair Delivery Network, which means we can ensure a flawless experience from start to finish for even the largest and heaviest products. We are also able to leverage our enhanced logistics network and greater efficiencies to offer our customers creative and compelling promotions in time for the holidays in the U.S., Canada and Europe.”
According to Shah, Wayfair expects these initiatives, as well as those planned in other business areas to continue propelling the company’s growth as it moves into 2018.
For the quarter ended Sept. 30, Wayfair reported a net loss of $76.4 million, compared to $60.9 million for the same period last year.
The adjusted net loss per diluted share was $0.65, which exceeded an analyst average estimate of $0.46, according to The Street.
On a positive note, direct retail net revenue, which consists of sales generated primarily through Wayfair’s sites, reached $1.2 billion, a 41.9% year-over- year (YOY) increase. This $348.8 million jump was in line with the Street’s projections.
Meanwhile, total revenue increased $336.7 million to $1.2 billion, up 39.1% year over year. The number of active customers in Wayfair’s direct retail business reached 10.3 million, an increase of 39.2% YOY. Repeat customers placed 61.0% of total orders in the third quarter of 2017, compared to 56.9% in the third quarter of 2016.
"We are very pleased with the company’s strong growth and momentum as we continue to reinforce our position as a clear online leader in the massive home category," noted Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
“Through significant advancements across our supply chain network, we are now able to promise our customers a more seamless shopping experience and even faster delivery times for millions of products,” he added. “The majority of large parcel orders such as sofas, dining tables, bathroom vanities, chandeliers and more are now flowing through the Wayfair Delivery Network, which means we can ensure a flawless experience from start to finish for even the largest and heaviest products. We are also able to leverage our enhanced logistics network and greater efficiencies to offer our customers creative and compelling promotions in time for the holidays in the U.S., Canada and Europe.”
According to Shah, Wayfair expects these initiatives, as well as those planned in other business areas to continue propelling the company’s growth as it moves into 2018.