Wayfair Slims Q2 Loss as Sales Rocket

The online retailer’s sales jump 66.4 percent in the quarter
August 12, 2015David Gill

Wayfair.comBOSTON-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.”

David GillDavid Gill | Senior Editor
dgill@hfnmag.com

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.

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