From Home Furnishing Business
Wayfair Reports $60.9M Loss on 45% Revenue Gain
Online retail giant Wayfair (W) said third-quarter revenue jumped 45% to $861.5 million, but the e-commerce heavyweight reported a net loss of $60.9 million or 72 cents per share.
The most recent loss, which totaled 54 cents per share after being adjusted for stock option expenses, was well above a loss of $15.5 million or 18 cents per share in last year’s third quarter, but less than most Wall Street projections.
Most analysts were projecting a loss, after the stock option adjustments, of about 60 cents per share, according to various media reports.
As of Sept. 30, the retailer said the number of active customers for its direct retail business stood at 7.4 million, an increase of 60.4% year-over-year. Repeat customers placed 59.6% of total orders during the third quarter, and the average order size was $244, up from $235 in last year’s third quarter.
“We are very pleased to report yet another strong quarter of rapid growth as we continue to gain significant market share,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair. "With a core focus on enhancing the retail experience for our customers through technology, innovation, and inspiring merchandising, we are rapidly redefining the way people shop for their homes.
“From augmented and virtual reality solutions to a brand-new wedding registry experience, we are applying cutting-edge technologies to traditional retail challenges to make our e-commerce experience the preferred way to shop for furniture, décor, home improvement products, seasonal décor and more.”
For the nine months ended Sept. 30, revenues totaled $2.396 billion, an increase of 58.7% from $1.51 billion in the first nine months of 2015.
The nine-month net loss totaled $150.4 million or $1.77 per share. That was up from a loss of $61.9 million or 74 cents per share in the comparable period.
In addition to Wayfair, the retailer’s family of brands include Joss & Main, All Modern, Dwell Studio and Birch Lane.