Wayfair reports 3.4% decline in Q2 net revenues

Company also lowers net loss significantly largely because of cost-cutting measures

BOSTON — Driven by declines in international sales, Wayfair reported a decrease in overall net revenues for the second quarter ended June 30.

It reported $3.2 billion in net revenue, down 3.4% from $3.3 billion reported the same period last year.

U.S. net revenues totaled $3.2 billion, down .4%, or $11 million, from last year, while international revenues fell 20.9% to $386 million, from $488 million last year.

Its net loss decreased substantially, to $46 million, or 41 cents per share, compared to a net loss of $378 million, or $3.59 per share the same period last year.

For the full first half, net revenues totaled $5.95 billion, compared to $6.3 billion the same period last year, a 5.3% decrease.

Its net loss for the first half also declined to $401 million, or $3.60 per share, compared with $697 million, or $6.62 per share, in the first half of 2022.  

It also reported $217 million in net cash provided by operating activities and $1.3 billion in cash, cash equivalents and short-term investments. Its total liquidity was $1.8 billion, which includes funds available under its revolving credit facility.

“Last year, we laid out a plan to strengthen our business that included a path to sustainable and growing profitability with several key milestones,” said Niraj Shah, CEO, co-founder and co-chairman. “For the past few quarters, you’ve seen us execute against that plan — to lower our costs, focus on the basics and earn more customer and supplier loyalty. And you’ve seen the tangible impact of this plan as our performance has continued to improve. I’m pleased to share today that we’ve passed one of our key milestones and we are reporting positive adjusted EBITDA and positive free cash flow.”

“This is in combination with a return to momentum in our top line with positive year-over-year order growth, and sequentially higher active customer count, all while investing into initiatives for future growth,” he added. “This is how we ran the business for our first decade and how we’ll continue to do so going forward — profitable, while investing for growth. We think we are now in a very exciting place — having scale while remaining ambitious and entrepreneurial — and we plan to take full advantage of this.”

Other highlights of its second-quarter report were as follows:

+ The company reported it had 21.8 million active customers as of June 30, down 7.6% year over year.

+ Last 12-month (LTM) net revenues per active customers was $545, as of June 30, up 1.5% year over a year.

+ The average order value was $307 in the second quarter, compared to $330 the same period last year.

+ Orders delivered in the second quarter totaled 10.3 million, up 3% year over year.

+ Repeat customers placed 80.1% of total orders delivered in the second quarter, compared to 78.6% in the same period last year.

+ Repeat customers placed 8.3 million in orders in the second quarter, up 6.4% year over year.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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