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A Wayfair employee works in his office at Wayfair’s corporate headquarters in Boston on July 31, 2018.
Suzanne Kreiter | Boston Globe | Getty Images
Wayfair shares surged Thursday after the furniture seller’s second quarter results showed it was retaining some of the gains it made in its business during the pandemic.
Profits exceeded estimates, and although sales declined and fell short of Wall Street expectations, revenues were above pre-pandemic rates.
Wayfair has benefited from increased demand during the pandemic, with consumers spending more money online during shutdowns. Buyers also focused on improving their homes as they spent more time working and relaxing there.
But Wayfair’s latest results show it was able to hold on to some of these new buyers. The company said the number of active customers rose to 31.1 million, an increase of nearly 20% year-over-year.
The company’s shares rose 6.7% in pre-market trading. The stock is down more than 28% from its 52-week high of $ 369, which it hit on January 14, with investors worried its pandemic momentum is unlikely to last.
Here’s how the company fared for its second quarter ended June 30 compared to what analysts polled by Refinitiv expected:
- Earnings per share: $ 1.89 vs. $ 1.15 expected
- Turnover: 3.86 billion dollars against 3.94 billion dollars expected
In its second quarter, the company reported a loss of net income of $ 130.4 million, or $ 1.14 per share, compared to $ 273.9 million, or $ 2.54 per share, a year earlier.
Excluding items, the company reported earnings of $ 1.89 per share, exceeding the $ 1.15 per share expected by analysts polled by Refinitiv.
The company reported revenue of $ 3.86 billion, against expectations of $ 3.94 billion.
Net income per active customer over the past 12 months was $ 478 at the end of the second quarter, an increase of 8.6% year over year.
“Home remains a high priority for our customers and the longer term favorable winds for the growth of the online category are firmly in place,” CEO Niraj Shah said in the earnings release.
During the quarter, Wayfair said, its average order value was $ 278, higher than the $ 277 a year earlier.
The company delivered 13.9 million orders in the quarter, down 26.5% year-on-year.
Repeat customers placed 10.5 million orders during the quarter, representing 75.6% of total orders. Regular customer orders were down 17.6% year-on-year.
After four quarters of growth above 40%, its revenue is expected to decline 8.4% for the second period, according to StreetAccount.
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