Wayfair reports 1.6% decline in Q1 revenues

Company reduces net loss to $248 million, compared to $355 million last year

BOSTON — Online home furnishings retailer Wayfair reported a 1.6% decline in net revenues, while also reducing its loss to $248 million for its first quarter ended March 31.

The company reported total net revenues of $2.7 billion, down $45 million from $2.8 billion the same period last year. U.S. net revenues were down 1% to $2.4 billion and international revenues were down 5.8% to $338 million.

Niraj Shah

The company reported gross profits of $819 million, or 30% of total net revenues, down slightly from the $821 million reported last year. It cut its overall net loss to $248 million, or $2.06 per share, from $355 million, or $3.22 per share, the same period last year.

“The first quarter ended on an upswing,” said Niraj Shah, chief executive officer, co-founder and co-chairman. “Our revenue was down just under 2% year over year for Q1, which marks our sixth straight quarter of share gain. Shoppers are increasingly choosing Wayfair, with year-over-year active customer growth once again positive and accelerating compared to last quarter.”

“For the first time since pre-pandemic, we’re seeing suppliers introducing large groups of new products into their catalogs as they look to build momentum for the next stage of growth,” he added. “Across the board, we’re hearing their enthusiasm to partner with Wayfair and substantial interest to lean in behind our entire offering — joining our curated brands, being featured in our promotional events, leveraging our fulfillment solutions, taking advantage of supplier advertising and having shelf space in our stores.”

The company also reported cash, cash equivalents and short-term investments of $1.2 billion and total liquidity of $1.7 billion, which includes funds available through its revolving credit facility.

Other takeaways from the report were as follows:

+ The company said it had 22.3 million active customers as of March 31, up 2.8% from last year.

+ The average order value was $285 in the first quarter, down slightly from $287 the same period last year.

+ Last 12 month net revenue per active customer was $537 as of March 31, down 2.8% from last year.

+ Repeat customers placed 7.7 million orders in the first quarter, up 1.3% from last year.

+ There were $9.6 million in orders delivered in the first quarter, down 1% year over year.

+ Repeat customers placed 80.5% of total orders delivered in the first quarter, up from 79.1% last year.

+ The company spent $324 million on advertising during the quarter, compared to $327 million last 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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