Wayfair earnings crush estimates amid pandemic-driven demand
Wayfair Inc. reported third-quarter earnings and sales that topped analysts’ expectations as consumers continue to work from and update their home amid the pandemic.
The online home furnishings company reported that its net income totaled $173.2 million, or $1.67 per share, in the quarter ended Sept. 30, compared to a loss of $272.0 million, or $2.94 per share, in the year-ago period. Analysts had expected earnings of $0.82 per share.
Revenue jumped 66.5% to $3.84 billion from $2.31 billion, topping estimates of $3.66 billion.
The number of active customers rose 50.9% to 28.8 million during the quarter. Repeat customers placed 71.9% of orders, or 11.3 million, during the third quarter. The average order value was $243, down from $252 last year.
“Category momentum is vibrant, demand is moving online at an accelerated pace, and we expect the home to be even more important than usual when it comes to celebrating the holidays this year,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “Our long-term mindset and strategic investments in merchandising, selection, service and delivery both in North America and in Europe are translating to share gains, sustained profitability, and positive free cash flow generation. While today’s unique environment has accentuated these trends, we are confident that there is a long runway for continued strong profitable growth ahead for Wayfair -- well beyond when the current circumstances have passed.”