Why Is Online Home Goods Seller Wayfair On Fire Today?

Zinger Key Points
  • Wayfair Q1 revenue of $2.729 billion beats the analyst consensus estimate of $2.635 billion.
  • Wayfair held over $1.1 billion in cash and equivalents as of March 31, 2024.

Wayfair Inc W shares are shooting higher after the company reported better-than-expected first-quarter FY24 earnings.

The company reported a first-quarter FY24 sales decline of 1.6% year-on-year to $2.729 billion, beating the analyst consensus estimate of $2.635 billion.

International net revenue fell 5.8% to $338 million, while U.S. revenue declined 1% to $2.4 billion.

The number of active customers reached 22.3 million as of March 31, a 2.8% increase Y/Y. The average order value remained flat at $285.

In the first-quarter, 63.1% of total orders delivered were placed through a mobile device, versus 62.1% last year.

Adjusted EPS loss of $(0.32) beat the analyst consensus of $(0.44).

Gross profit slipped 0.2% Y/Y to $819 million, and the margin expanded 50 basis points to 30%.

Loss from operations for the quarter narrowed to $(235) million versus a loss of $(347) million last year.

The company held over $1.1 billion in cash and equivalents as of March 31. Net cash used in operating activities for the quarter was $(139) million.

Adjusted EBITDA for the quarter totaled $75 million, with an adjusted EBITDA margin of 2.7%.

Niraj Shah CEO, co-founder and co-chairman, said, “For the first time since pre-pandemic, we’re seeing suppliers introducing large groups of new products into their catalogs as they look to build momentum for the next stage of growth.”

Price Action: W shares are trading higher by 12.3% at $56.54 at the last check Thursday.

Now Read: Will Apple Crack AI Code And Spark Investor Optimism? Tim Cook’s Tech Strategy In Focus Amid Expected Q2 Slump

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: NewsGeneralBriefse-commerceStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!