Wayfair (W - Free Report) reported a first-quarter 2024 non-GAAP loss of 32 cents per share, narrower than the Zacks Consensus Estimate for a loss of 45 cents per share. The company reported a loss of $1.13 per share in the year-ago quarter.
Net revenues of $2.73 billion surpassed the consensus mark by 3.3%. The top line decreased 1.6% year over year.
LTM net revenues per active customer decreased 2.8% year over year to $537, which beat the Zacks Consensus Estimate by 0.45%.
Nevertheless, growth in the active customer base remained a positive. Active customers were up 2.8% year over year to 22.3 million and beat the consensus mark by 0.26%.
Quarter Details
Net revenues in the United States (87.6% of total net revenues) decreased 1% year over year to $2.4 billion. The figure beat the Zacks Consensus Estimate by 4.1%.
International net revenues (12.4% of total net revenues) declined 5.8% year over year and 7.5% on a constant currency basis to $338 million. It missed the consensus mark by 0.7%.
Orders per customer for the quarter were 1.84, up from 1.81 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.5%.
The average order value declined 0.7% year over year to $285, which beat the consensus mark by 4.99%.
The total number of orders delivered in the reported quarter was 9.6 million, which decreased 1% year over year.
Repeat customers placed 7.7 million orders (accounting for 80.5% of total orders) in the first quarter, up 1.3% year over year.
Additionally, 63.1% of total orders delivered were placed through mobile devices in the reported quarter compared with 62.1% in the year-ago quarter.
Operating Results
Wayfair’s first-quarter gross margin was 30%, expanding 40 basis points on a year-over-year basis.
Adjusted EBITDA was $75 million against an EBITDA loss of $14 million in the year-ago quarter.
Customer service and merchant fees decreased 15.8% year over year to $117 million.
Advertising expenses fell 0.9% year over year to $324 million. Selling, operations, technology and general and administrative expenses decreased 14.4% year over year to $534 million.
Wayfair incurred a GAAP operating loss of $235 million in the reported quarter compared with an operating loss of $347 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash, cash equivalents and short-term investments were $1.2 billion, down from $1.4 billion reported on Dec 31, 2023.
Long-term debt, as of Mar 31, 2024, was $3.095 billion compared with $3.092 billion on Dec 31, 2023.
In the first quarter, cash used in operations amounted to $139 million compared with $158 million generated from operations in the fourth quarter.
Wayfair reported a free cash outflow of $193 million in the first quarter.
Zacks Rank & Other Stocks to Consider
Currently, Wayfair has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the retail-wholesale sector are The Gap (GPS - Free Report) , DICK'S Sporting Goods (DKS - Free Report) and Target (TGT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has lost 3.6% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 12%.
DICK'S Sporting Goods shares have gained 41.2% in the year-to-date period. DKS’ long-term earnings growth rate is currently projected at 35.5%.
Target has gained 12.8% in the year-to-date period. The long-term earnings growth rate for TGT is currently anticipated at 11.36%.
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Wayfair (W - Free Report) reported a first-quarter 2024 non-GAAP loss of 32 cents per share, narrower than the Zacks Consensus Estimate for a loss of 45 cents per share. The company reported a loss of $1.13 per share in the year-ago quarter.
Net revenues of $2.73 billion surpassed the consensus mark by 3.3%. The top line decreased 1.6% year over year.
LTM net revenues per active customer decreased 2.8% year over year to $537, which beat the Zacks Consensus Estimate by 0.45%.
Nevertheless, growth in the active customer base remained a positive. Active customers were up 2.8% year over year to 22.3 million and beat the consensus mark by 0.26%.
Quarter Details
Net revenues in the United States (87.6% of total net revenues) decreased 1% year over year to $2.4 billion. The figure beat the Zacks Consensus Estimate by 4.1%.
International net revenues (12.4% of total net revenues) declined 5.8% year over year and 7.5% on a constant currency basis to $338 million. It missed the consensus mark by 0.7%.
Orders per customer for the quarter were 1.84, up from 1.81 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.5%.
The average order value declined 0.7% year over year to $285, which beat the consensus mark by 4.99%.
The total number of orders delivered in the reported quarter was 9.6 million, which decreased 1% year over year.
Repeat customers placed 7.7 million orders (accounting for 80.5% of total orders) in the first quarter, up 1.3% year over year.
Additionally, 63.1% of total orders delivered were placed through mobile devices in the reported quarter compared with 62.1% in the year-ago quarter.
Operating Results
Wayfair’s first-quarter gross margin was 30%, expanding 40 basis points on a year-over-year basis.
Adjusted EBITDA was $75 million against an EBITDA loss of $14 million in the year-ago quarter.
Customer service and merchant fees decreased 15.8% year over year to $117 million.
Advertising expenses fell 0.9% year over year to $324 million. Selling, operations, technology and general and administrative expenses decreased 14.4% year over year to $534 million.
Wayfair incurred a GAAP operating loss of $235 million in the reported quarter compared with an operating loss of $347 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash, cash equivalents and short-term investments were $1.2 billion, down from $1.4 billion reported on Dec 31, 2023.
Long-term debt, as of Mar 31, 2024, was $3.095 billion compared with $3.092 billion on Dec 31, 2023.
In the first quarter, cash used in operations amounted to $139 million compared with $158 million generated from operations in the fourth quarter.
Wayfair reported a free cash outflow of $193 million in the first quarter.
Zacks Rank & Other Stocks to Consider
Currently, Wayfair has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the retail-wholesale sector are The Gap (GPS - Free Report) , DICK'S Sporting Goods (DKS - Free Report) and Target (TGT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has lost 3.6% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 12%.
DICK'S Sporting Goods shares have gained 41.2% in the year-to-date period. DKS’ long-term earnings growth rate is currently projected at 35.5%.
Target has gained 12.8% in the year-to-date period. The long-term earnings growth rate for TGT is currently anticipated at 11.36%.
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 >>
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