29 May 2024, 11:54
By Furniture News Aug 05, 2022

Wayfair struggles against strong comparatives

Wayfair has reported its worldwide results for Q2 (ended 30th June, 2022).

Total net revenue was $3.3b, down $573m (or -14.9% YoY).

US net revenue was $2.8b, down $302m (or -9.7% YoY), while international net revenue was $0.5b, down $271m (or-35.7% YoY).

Wayfair achieved a gross profit of $896m (or 27.3% of total net revenue), yet suffered a net loss of $378m (non-GAAP adjusted EBITDA was down -$108m).

Cash, cash equivalents and short-term investments totaled $1.7b.

“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the home. We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period,” says Niraj Shah, CEO, co-founder and co-chairman.

“Consumers remain engaged and responsive to the right combination of wide selection, great deals, and satisfying service, while suppliers are leaning in with Wayfair, extending us more product and better wholesale costs, while using more of our service offerings.

"Simultaneously, we are actively maneuvering Wayfair to generate cash consistently and to control our own destiny. Underpinning this plan is a broad prioritisation exercise intended to balance continued investment in long-term growth while ensuring tight day-to-day execution across a range of macro scenarios.”

During Q2, Wayfair's active customer base stood at 23.6 million (down -24.1% YoY), but net revenue per active customer was $537 (up +12.3% YoY).

Some 10 million orders were delivered in Q2 – a YoY decrease of -28.2%. AOV was $330, compared to $278 YoY.

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