Wayfair investors say ‘way to go’
Online home furnishings retailer Wayfair is losing less money than before and gaining new customers at a rapid pace.
The retailer reported that for the second quarter ended June 30,revenue increased to $491.8 million, up 66.4% year over year. Direct retail revenue, consisting of sales generated primarily through the sites of Wayfair’s five brands, increased to $440.3 million, up 80.8% year over year.Gross profit was $120.8 million or 24.6% of total net revenue, compared to 23.2% of total net revenue in the same quarter last year and 24.2% in the prior quarter.
“As we continue to deliver a truly differentiated retail experience from start to finish, we are seeing tremendous growth and momentum across the business,” noted Niraj Shah, CEO, co-founder and co-chairman of Wayfair. “From new, exclusive brand offerings to our ongoing commitment to attentive and knowledgeable customer service, Wayfair is delivering a shopping experience that exceeds customers’ expectations. At the same time, we are benefitting from a strategic shift in our advertising plan that allows us to attract higher value customers with a propensity for repeat purchases. We remain excited about the market opportunity ahead of us.”
The company says the number of active customers in its direct retail business reached 4 million as of June 30, up 53.5% year over year.Orders per customer, measured as LTM orders divided by active customers, increased to 1.67, up from 1.62 year over year.
"We believe our growing brand awareness and the investment we’ve made in brand advertising both through TV and online have helped to drive new customer acquisitions," said CFO Michael Fleisher.
Repeat customers placed 56.6% of total orders, compared to 51.6% in the second quarter of 2014.And 34.1% of total orders delivered for the direct retail business were placed via a mobile device, up from 28.2% in the second quarter of 2014.
Wayfair sells over seven million products from over 7,000 suppliers across five brands: Wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane.
