From Home Furnishing Business
Wayfair Q4 Loss Widens as Revenue Jumps 33.1%
E-commerce powerhouse Wayfair Inc. (NYSE: W) said fourth-quarter revenue leaped 33.1% to $984.6 million, but the retailer’s net loss more than doubled to $44 million.
The net loss, which equals 51 cents per share, came as the company ramped up its advertising, marketing, sales and technology spending as it expanded its operations in North America and Europe.
The company said the average order value slipped to $203 in the most recent quarter from $222 in the fourth quarter of 2015, but the number of active customers rose 53.9% to 8.3 million as of Dec. 31.
For the 2016 calendar year, revenue jumped 50.2% to $3.38 billion, but the company’s net loss widened to $194.4 million or $2.29 per share. In 2015, Wayfair had a loss of $77.4 million or 92 cents per share.
"We are extremely pleased to report yet another year of exceptional growth with total net revenue up $1.1 billion to $3.4 billion in 2016," said Niraj Shah, CEO, co-founder and co-chairman. "As we continue to rapidly gain market share in the approximately $600 billion home category across North America and Europe, we are reaping the gains from the large, long-term investments we have been making over the past few years. Our largest investment is in our international business in Canada, the United Kingdom and Germany, where we are starting to see real traction and increased brand awareness.
“In the U.S., we are also investing in our proprietary logistics network, including CastleGate and the Wayfair Delivery Network, as well as in newer categories, such as home improvement and housewares. Even with this substantial ongoing investment in our U.S. business, the U.S. business continues to deliver strong results.”
Most of Wayfair’s revenue is generated from five websites – Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane.