Daily News
From Home Furnishing Business
Wayfair posts wider loss as spending rises
May 9,
2016 by in Financial Reports, Industry 
Wayfair Inc. (NASDAQ: W) said today it posted a wider loss in the first quarter amid higher spending, though revenue at the online home-goods retailer soared 76%, topping Wall Street views.
Chief Executive Niraj Shah said the company has benefited from new customer growth and repeat customers.
Wayfair, which began trading publicly in the fall of 2014, has posted losses since its trading debut as growing expenses have offset rapid sales growth. Those losses had begun to narrow recently.
The Boston company said the number of active customers grew 69% from a year ago, to 6.1 million. Repeat customers placed 55% of orders during the first quarter, compared with about 54% a year ago.
Over all, Wayfair reported a first-quarter loss of $41.2 million, or 49 cents a share, compared with a year-earlier loss of $27.1 million, or 33 cents a share. Excluding items, the company said its loss was 36 cents a share. Analysts expected a loss of 33 cents a share, according to Thomson Reuters. Revenue rose to 76% to $747.3 million. Analysts projected $695 million in revenue. Direct retail revenue, which consists of sales generated mainly through the sites of Wayfair's five brands, nearly doubled to $711.8 million. Total operating expenses climbed 70% to $221.2 million, as the company spent more on items such as advertising and marketing.
Wayfair shares, which have risen 13% over the past three months, were inactive premarket.