by Retailer also narrows net loss for each period, reporting its ‘best quarter of profitability and cash flow in 3 years‘
BOSTON — Retailer Wayfair reported slight declines in second-quarter and first-half revenues, while also lowering its net loss for the same periods.
The company reported total net revenues of $3.1 billion for the quarter ended June 30, a 1.7% decrease of $54 million from the same period last year.
Its $2.7 billion in U.S. revenues were down 2%, a decrease of $55 million, while international net revenues of $387 million rose $1 million, up .3%
During the second quarter, the company reported a net loss of $42 million, or 34 cents per share, down from $46 million, or 41 cents per share, the same period last year.
It also reported gross profits of $941 million, or 30.2% of total net revenue, down 4.4% from the $985 million, or 31.1% of revenues last year.
For the first half, net revenues totaled $5.8 billion, down 1.7%, or $99 million from the same period last year. It also narrowed its second-half net loss to $290 million, or $2.39 per share, compared with $401 million, or $3.60 per share last year.
“Q2 was a dynamic quarter that resulted in another period of share gain, amid continued macro headwinds that are pressuring the ways customers are shopping the category,” said Niraj Shah, chief executive officer, co-founder and co-chairman of Wayfair. “Customers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis.”
The results show that the company’s efforts to cut costs, including reductions in head count, are paying off.
“Every action we’ve taken, every goal we’ve prioritized, and every dollar we’ve spent has been considered under the intense scrutiny of our high expectations for return-on-investment,” Shah added. “Even with the challenging macro, this was our best quarter of Adjusted EBITDA and Free Cash Flow generation in three years, clear evidence of our strict operating discipline. We are running the business with the goal of demonstrating substantial growth in profitability this year, even as the top line remains challenging. And that will be our mindset every year going forward as well.”
Other highlights of the report were as follows:
+ The company said that active customers totaled 22 million as of June 30, 2024, up .9% year over year.
+ Last 12 Month net revenue per active customer was $540 as of June 30, 2024, down .9% year over year.
+ Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the second quarter of 2024, compared to 1.82 for the second quarter of 2023.
+ Orders delivered in the second quarter of 2024 were 10 million, down 2.9% year over year.
+ Repeat customers placed 81.7% of total orders delivered in the second quarter of 2024, compared to 80.1% in the second quarter of 2023.
+ Repeat customers placed 8.1 million orders in the second quarter of 2024, down 2.4% year over year.
+ The average order value was $313 in the second quarter, compared to $307 in the second quarter of 2023.
+ 63.7% of total orders delivered were placed via a mobile device in the second quarter of 2024, compared to 61.6% in the second quarter of 2023.
