Wayfair Slims Q2 Loss as Sales Rocket
August 12, 2015,
BOSTON-With net sales making a 66.4 percent leap, Wayfair’s second-quarter net loss narrowed from $28 million to $19.3 million.
Net sales reached $491.8 million in the quarter, which ended on June 30. Crucial to the Wayfair business growth was a 53.5 percent jump in active customers of the company’s direct-retail business, which reached 4 million by the end of the quarter. Wayfair’s direct-retail sector is comprised of its home products brands: wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane.
In addition, net revenue per active customer over the 12 months ending on June 30 was $357, up 7.5 percent year over year. Orders per customer were 1.67 for the second quarter, up from 1.62 for last year’s second quarter.
“As we continue to deliver a truly differentiated retail experience from start to finish, we are seeing tremendous growth and momentum across the business,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair. “At the same time, we are benefiting from a strategic shift in our advertising plan that allows us to attract higher value customers with a propensity for repeat purchases.”
Second-quarter gross margin rose 140 basis points to 24.6 percent. Selling, general and administrative expenses were up 53.4 percent in dollars but fell 252 basis points as a percentage of sales, to 28.5 percent.
“From new, exclusive brand offerings to our ongoing commitment to attentive and knowledgeable customer service, Wayfair is delivering a shopping experience that exceeds customers’ expectations,” Shah said. “We remain excited about the market opportunity ahead of us.”