#Wayfair #Stock #Declines #Online #Home #Furnisher #Loses #Customers
Key takeaways
- Wayfair’s adjusted third-quarter earnings were well above analyst estimates, but its shares fell on Friday due to its loss of customers.
- The online home furnishings retailer also saw deliveries and a decline in repeat customer orders.
- Co-founder and CEO Neeraj Shah said the company faced “continuous challenges in this category.”
Wayfair (W) shares fell on Friday even as adjusted earnings rose above analyst estimates as the online home furnishing retailer lost customers.
The company reported third-quarter adjusted earnings per share (EPS) of $0.22, nearly double the expectations of analysts surveyed by Visible Alpha. Revenue fell 2% year over year to $2.88 billion, in line with expectations. Adjusted EBITDA margin was 4%.
The number of active customers fell 3% to 21.7 million, and orders delivered fell 6% to 9.3 million. Repeat customers placed 7.4 million orders, down 6%.
On the plus side, last-12-month (LTM) revenue per customer rose 1% to $545, and average order value rose $13 to $310. The company reduced its operating expenses by 11% to $947 million.
CEO points to “sustainable challenges”
Co-founder and Chief Executive Officer (CEO) Neeraj Shah explained that Wayfair increased its market share “in the face of ongoing challenges in the category.” Shah added that the company “successfully weathered a dynamic consumer environment with increased cost discipline to achieve adjusted EBITDA margin for the second consecutive quarter.”
Wayfair shares, which initially rose in premarket trading after the report, fell 1% in recent trading and have lost a third of their value this year.
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#Wayfair #Stock #Declines #Online #Home #Furnisher #Loses #Customers
