Wayfair Reports A Decline In Q2 Sales

Wayfair Inc. (NYSE: W), one of the world’s largest online destinations for the home, today reported financial results for its second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights

• Total net revenue of $3.3 billion decreased $573 million, down 14.9% year over year
• U.S. net revenue of $2.8 billion decreased $302 million, down 9.7% year over year
• International net revenue of $0.5 billion decreased $271 million, down 35.7% year over year. International Net Revenue Constant Currency Growth was (34.4)%
• Gross profit was $896 million or 27.3% of total net revenue
• Net loss was $378 million and Non-GAAP Adjusted EBITDA was $(108) million
• Diluted loss per share was $3.59
• Non-GAAP Adjusted Diluted Loss per Share was $1.94
• Net cash flows used in operating activities was $115 million and Non-GAAP Free Cash Flow was $(244) million
• Cash, cash equivalents and short-term investments totaled $1.7 billion

“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,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

“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 prioritization exercise intended to balance continued investment in long-term growth while ensuring tight day-to-day execution across a range of macro scenarios.”

Other Second Quarter Highlights

• Active customers reached 23.6 million as of June 30, 2022, a decrease of 24.1% year over year

• LTM net revenue per active customer was $537 as of June 30, 2022, an increase of 12.3% year over year

• Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the second quarter of 2022, compared to 1.96 for the second quarter of 2021

• Orders delivered in the second quarter of 2022 were 10.0 million, a decrease of 28.2% year over year

• Repeat customers placed 78.6% of total orders in the second quarter of 2022, compared to 75.6% in the second quarter of 2021

• Repeat customers placed 7.8 million orders in the second quarter of 2022, a decrease of 25.7% year over year

• Average order value was $330 for the second quarter of 2022, compared to $278 for the second quarter of 2021

• In the second quarter of 2022, 59.0% of total orders delivered were placed via a mobile device, compared to 59.4% in the second quarter of 2021

Key Financial and Operating Metrics

Source : Wayfair

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