Wayfair furnishes another strong quarter
Both first-time and repeat customers were on the rise for Wayfair in the first quarter, suggesting the company is doing what it takes to grow into a powerful player in e-commerce.
The Internet home furnishings retailer reported that the number of active customers rose by 380,000 in the first quarter, to 3.6 million in total, from the previous quarter. Wayfair also said that repeat customers accounted for 53.9% of total orders during Q1, compared to 50.3% of orders in Q4. Those dynamics contributed to a boost for the top line: Wayfair's direct-retail revenue rose 63.%, year-over-year, to $369.4 million.
“We are off to a strong start this year and are particularly pleased with the revenue strength and accelerated growth in our Direct Retail business,” noted Niraj Shah, co-founder, CEO and co-chairman of Wayfair. “We believe the growth rate this quarter underscores the size of the market opportunity, the rapidly changing, and favorable dynamics of how customers purchase home goods and Wayfair’s unique position in this large and rapidly growing market segment. Additionally, the increase in our advertising spend last year helped attract new, and higher value customers, driving both revenue growth and advertising spend leverage this quarter. We remain excited about the opportunity ahead as we continue to gain market share and grow.”
Wayfair reported other highlights
• Orders per customer, measured as LTM orders divided by active customers, increased to 1.64 for the First Quarter, up from 1.62 year over year
• Orders delivered in the First Quarter of 2015 were 1.8 million, a 57.9% increase year over year
• Average order value was $206 for the First Quarter 2015, up from $199 year over year
The Wayfair family of brands includes: Wayfair.com, an online destination for all things home, Joss & Main, an online flash sales site offering inspiring home design daily, AllModern, a go-to online source for modern design, DwellStudio, a design house for fashion-forward modern furnishings, Birch Lane, a collection of classic furnishings and timeless home décor
Wayfair is headquartered in Boston, with additional locations in New York, Ogden, Utah, Hebron, Kentucky, Galway, Ireland, London, Berlin and Sydney.