Wayfair (W - Free Report) reported third-quarter 2021 non-GAAP earnings of 14 cents per share, which declined 93.9% year over year and 92.6% sequentially. The reported figure, however, surpassed the Zacks Consensus Estimate of 4 cents per share.
Total revenues were $3.1 billion, which declined 18.7% year over year and 19.1% sequentially. The top line also missed the consensus mark by 3.4%.
The top-line decrease was a result of declining domestic and international revenues. Further, a decline in orders per customer affected the results.
Top-Line Details
Net revenues in the United States decreased 20.8% year over year to $2.6 billion. International net revenues also decreased 6.8% from the prior-year quarter to $0.5 billion. Nonetheless, international net revenues reported 12.1% growth on a constant-currency basis.
Active customers were up 1.5% year over year to 29.2 million. In addition, LTM net revenues per active customer increased 7.3% year over year to $484. Average order value climbed 16.5% year over year to $283.
Total number of orders delivered in the reported quarter was 11 million, down 30.1% year over year. In addition, orders per customer for the quarter were 1.92 million compared with 1.94 million in the year-ago period.
Further, repeat customers placed 8.4 million orders (accounting for 76.3% of total orders) in the third quarter, down 25.8% year over year.
Additionally, 57.7% of total orders delivered were placed through a mobile device in the reported quarter compared with 60% in the year-ago period.
Operating Details
Wayfair’s third-quarter gross margin was 28.3%, contracting 160 basis points on a year-over-year basis.
Adjusted EBITDA was $101.1 million compared with $371.1 million in the year-ago quarter.
Customer service and merchant fees increased 0.2% year over year to $139.9 million. Advertising expenses declined 8.4% from the prior-year quarter to $315 million. Selling, operations, technology, general and administrative expenses increased 12.6% year over year to $497.6 million.
The company incurred an operating loss of $69.8 million for the reported quarter. It reported an operating income of $221.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2021, cash, cash equivalents and short-term investments were $2.39 billion, reflecting a decline from $2.60 billion reported on Jun 30, 2021.
Long-term debt as of Sep 30, 2021 was $3.049 billion compared with $3.048 billion on Jun 30, 2021.
Net cash for operations was $130.8 million while free cash flow was a negative $203.2 million.
Zacks Rank & Stocks to Consider
Wayfair currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the retail-wholesale sector include AutoNation (AN - Free Report) , Conn’s (CONN - Free Report) and Macy’s (M - Free Report) . While AutoNation and Macy’s sport a Zacks Rank #1 (Strong Buy), Conn’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Macy’s, AutoNation, and Conns are currently projected at 12%, 19.1%, and 23%, respectively.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
Wayfair (W - Free Report) reported third-quarter 2021 non-GAAP earnings of 14 cents per share, which declined 93.9% year over year and 92.6% sequentially. The reported figure, however, surpassed the Zacks Consensus Estimate of 4 cents per share.
Total revenues were $3.1 billion, which declined 18.7% year over year and 19.1% sequentially. The top line also missed the consensus mark by 3.4%.
The top-line decrease was a result of declining domestic and international revenues. Further, a decline in orders per customer affected the results.
Top-Line Details
Net revenues in the United States decreased 20.8% year over year to $2.6 billion. International net revenues also decreased 6.8% from the prior-year quarter to $0.5 billion. Nonetheless, international net revenues reported 12.1% growth on a constant-currency basis.
Active customers were up 1.5% year over year to 29.2 million. In addition, LTM net revenues per active customer increased 7.3% year over year to $484. Average order value climbed 16.5% year over year to $283.
Total number of orders delivered in the reported quarter was 11 million, down 30.1% year over year. In addition, orders per customer for the quarter were 1.92 million compared with 1.94 million in the year-ago period.
Further, repeat customers placed 8.4 million orders (accounting for 76.3% of total orders) in the third quarter, down 25.8% year over year.
Additionally, 57.7% of total orders delivered were placed through a mobile device in the reported quarter compared with 60% in the year-ago period.
Operating Details
Wayfair’s third-quarter gross margin was 28.3%, contracting 160 basis points on a year-over-year basis.
Adjusted EBITDA was $101.1 million compared with $371.1 million in the year-ago quarter.
Customer service and merchant fees increased 0.2% year over year to $139.9 million. Advertising expenses declined 8.4% from the prior-year quarter to $315 million. Selling, operations, technology, general and administrative expenses increased 12.6% year over year to $497.6 million.
The company incurred an operating loss of $69.8 million for the reported quarter. It reported an operating income of $221.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2021, cash, cash equivalents and short-term investments were $2.39 billion, reflecting a decline from $2.60 billion reported on Jun 30, 2021.
Long-term debt as of Sep 30, 2021 was $3.049 billion compared with $3.048 billion on Jun 30, 2021.
Net cash for operations was $130.8 million while free cash flow was a negative $203.2 million.
Zacks Rank & Stocks to Consider
Wayfair currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the retail-wholesale sector include AutoNation (AN - Free Report) , Conn’s (CONN - Free Report) and Macy’s (M - Free Report) . While AutoNation and Macy’s sport a Zacks Rank #1 (Strong Buy), Conn’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Macy’s, AutoNation, and Conns are currently projected at 12%, 19.1%, and 23%, respectively.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
Get the latest research report on M - FREE
Get the latest research report on AN - FREE
Get the latest research report on CONN - FREE
Get the latest research report on W - FREE