Wayfair Q1 Loss Grows as Revenues Jump 28.6%

May 9, 2017  by Larry Thomas in Economic News, Industry   

Gross margin increased to 24.7% from 24% in last year’s first quarter, but higher expenses for advertising, merchandising, marketing, operations and technology resulted in the larger loss.

The first-quarter loss of 66 cents per share compares to a loss of $40.9 million or 49 cents per share in the same quarter last year.

Wayfair said the average order value dropped to $223 from $238 in last year’s first quarter, but said repeat customers placed 60.4% of total orders, up from 55.4% in the comparable quarter

The number of active customers in the company’s direct retail business jumped 45.8% to 8.9 million, the company said.

"We are very pleased to report strong momentum in the first quarter of 2017 as we continue to gain significant traction across our key strategic initiatives and steadily increase our market share in the $600 billion-dollar home category across North America and Europe," said Niraj Shah, CEO, co-founder, and co-chairman.

"The home category is driven by visual imagery and discovery, with customers responding most positively to an inspirational shopping experience that brings product to life and solves traditional retail challenges in unexpected and compelling ways. The house brands that we are building are good examples of our best in class merchandising and technology capabilities that showcase the vast selection we offer our customers.”

In addition to its flagship Wayfair site, the retailer operates the Joss & Main, AllModern, Dwell Studio and Birch Lane websites.