Wayfair sales fall but loss narrows; ends quarter on ‘upswing’

Wayfair reported mixed second-quarter results as its loss narrowed and active customer count increased but its sales fell, with the biggest decline overseas.

The home furnishings giant  reported a loss of $248 million, or $2.06 a share, in the quarter ended March 28, down from a loss of $355 million, or $3.22 a share, in the year-ago period.  The company’s adjusted loss per share was $0.32, with analysts expecting a loss of $0.31 per share. Analysts had expected a loss of $0.44.

In January, Wayfair announced plans to cut 13% of its global workforce, or around 1,650 employees, in a move that was expected to save the retailer about $280 million.  

Total revenue edged down 1.2% to $2.729 billion, ahead of estimates of $2.635 billion. U.S. net revenue was down 1.0% to $2.4 billion. Sales in Wayfair’s international segment decreased 5.8% to $338 million.

Active customers totaled 22.3 million at the end of the quarter, an increase of 2.8% year over year.

"The first quarter ended on an upswing," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. "Our revenue was down just under 2% year-over-year for Q1, which marks our sixth straight quarter of share gain. Shoppers are increasingly choosing Wayfair, with year-over-year active customer growth once again positive and accelerating compared to last quarter."

Shah noted that, for the first time since pre-pandemic, Wafair is seeing suppliers introducing large groups of new products into their catalogs as they look to build momentum for the next stage of growth.

“Across the board, we're hearing their enthusiasm to partner with Wayfair and substantial interest to lean-in behind our entire offering - joining our curated brands, being featured in our promotional events, leveraging our fulfillment solutions, taking advantage of supplier advertising, and having shelf space in our stores,” he said.

Wayfair will open its first-ever large-format store at the end of May. The 150,000 sq. ft. Wayfair store is located at Edens Plaza in the Chicago-suburb of Wilmette, Ill.

Based in Boston, Wayfair generated $12.0 billion in net revenue for the twelve months ended March 31, 2024.