Wayfair (W) announces first-quarter 2022 losses

Neeraj Shah, CEO of Wayfair

ashley spine | CNBC

Weaver Shares fell in premarket trading on Thursday after the online furniture retailer reported larger-than-expected losses in the first quarter as shoppers cut back on spending on the home category.

Wayfair also announced that its chief financial officer, Michael Fleischer, will retire early next year. Kate Gulliver, the current chief human resources officer, will move to the role of chief financial officer in November. She added that Fleischer will remain in the company for a transitional period until next January.

Neeraj Shah, co-founder and CEO of Wayfair, said that despite the decline in sales, consumer health remains “relatively robust”.

The retailer has been a huge beneficiary during the pandemic as consumers shifted their spending to the web and purchased new home décor and office furniture. But it is plagued by supply chain complications that have delayed orders and frustrated shoppers.

“The companies that will be most successful in navigating this dynamic environment are those that can operate quickly,” Shah said in a press release.

Wayfair reported that the number of active customers in the first quarter of 2022 was down 23.4% from a year ago, to 25.4 million. Total orders per customer were 1.87, compared to 1.98 in the same period last year. Similarly, orders from repeat customers decreased from 2021, reaching 8.1 million, 26% lower than last year.

Active customers represent shoppers who have purchased at least once directly from Wayfair in the previous 12-month period.

For the three months ended March 31, Wayfair reported a loss of $319 million, or $3.04 per share, compared to net income of $18 million, or 16 cents per share, a year earlier.

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Excluding one-time items, the company lost $1.96 per share. Analysts were looking at a loss of $1.56 per share, according to a poll by Refinitiv.

Sales fell nearly 14% to $2.99 ​​billion from $3.48 billion a year earlier. That was in line with analyst estimates.

US net revenue fell 9.9% to $2.5 billion, while international net revenue fell 31.4% to $451 million.

Shah said Wayfair is focused on returning to profitability, on an adjusted EBITDA and amortization basis.

Wayfair shares are down more than 52% since the start of the year.

Find Wayfair’s full quarterly financial statement here.

By Elvira Soto

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