Wayfair customer count, activity soar in Q1
Aided in part by increased investment in advertising to attract higher-value customers, home furnishings and décor e-commerce company Wayfair Inc. generated strong sales gains in the first quarter, and its net loss beat analysts’ expectations.
The number of active customers in its direct retail business ballooned 49.3% to 3.6 million.
Repeat customers placed 53.9% of total orders compared to 50.7% last year. Orders delivered were up 57.9% to 1.8 million, while average order value increased to $206 from $199. In addition, 33.8% of total orders delivered for its direct retail business were placed via a mobile device, up from 27.6%.
For the quarter ended by March 31, Wayfair pared its net loss to $27.1 million, or 23 cents per share, from $28.0 million. Net revenue jumped 52.3% to $424.4 million from $278.7 million, with a 63.4% hike in direct retail revenue (sales generated primarily through the sites of Wayfair’s five brands) to $369.4 million.
“We are off to a strong start this year and are particularly pleased with the revenue strength and accelerated growth in our direct retail business,” said Niraj Shah, co-founder, ceo and co-chairman.
The Wayfair brand portfolio includes: Wayfair.com, which offers a wide range of home products; Joss & Main, an online flash sales site; AllModern, which concentrates on modern design; DwellStudio, which offers fashion-forward modern furnishings; and Birch Lane, which offers updated traditional home furnishings.
For the last 12 months, net revenue per active customer increased 7.1% to $346 year over year, and orders per customer – which the company calculated as orders divided by active customers – increased to 1.64 in Q1, up from 1.62 year over year.
In April, the first month of Wayfair.com’s second quarter, and its aided brand awareness reached 62%.
Source: Home&Textiles Today