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Wayfair (W) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
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Wayfair (W - Free Report) reported a fourth-quarter 2023 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate for a loss of 23 cents per share. The company reported a loss of $1.71 per share in the year-ago quarter.
Net revenues of $3.11 billion surpassed the consensus mark by 0.5%. The top line increased 0.4% year over year.
Growth in the active customer base positively impacted results. Active customers were up 1.4% year over year to 22.4 million and beat the consensus mark by 0.51%.
LTM net revenues per active customer decreased 3% year over year to $537, which beat the Zacks Consensus Estimate by 0.05%.
Net revenues in the United States (87% of total net revenues) increased 0.9% year over year to $2.7 billion. The figure beat the Zacks Consensus Estimate by 0.08%.
International net revenues (13% of total net revenues) declined 2.7% year over year and 4.6% on a constant currency basis to $404 million. It also beat the consensus mark by 4.9%.
Orders per customer for the quarter were 1.84, up from 1.81 reported in the year-ago quarter. The figure was in line with the Zacks Consensus Estimate of 1.84.
The average order value declined 2.5% year over year to $276, which beat the consensus mark by 2.99%.
The total number of orders delivered in the reported quarter was 11.3 million, which increased 2.7% year over year.
Repeat customers placed 9 million orders (accounting for 79.4% of total orders) in the fourth quarter, up 5.9% year over year.
Additionally, 62.8% of total orders delivered were placed through mobile devices in the reported quarter compared with 61.7% in the year-ago quarter.
Operating Results
Wayfair’s fourth-quarter gross margin was 30.3%, expanding 150 basis points on a year-over-year basis.
Adjusted EBITDA was $92 million against an EBITDA loss of $71 million in the year-ago quarter.
Customer service and merchant fees decreased 15.3% year over year to $138 million.
Advertising expenses fell 6.2% year over year to $381 million. Selling, operations, technology and general and administrative expenses decreased 8.9% year over year to $597 million.
Wayfair incurred a GAAP operating loss of $172 million in the reported quarter compared with an operating loss of $330 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash, cash equivalents and short-term investments were $1.4 billion, up from $1.28 billion reported on Sep 30, 2023.
Long-term debt, as of Dec 31, 2023, was $3.092 billion compared with $3.207 billion on Sep 30.
In the fourth quarter, cash generated from operations amounted to $158 million compared with $121 million generated from operations in the third quarter.
Wayfair generated a free cash flow of $62 million in the reported quarter.
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Wayfair (W) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
Wayfair (W - Free Report) reported a fourth-quarter 2023 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate for a loss of 23 cents per share. The company reported a loss of $1.71 per share in the year-ago quarter.
Net revenues of $3.11 billion surpassed the consensus mark by 0.5%. The top line increased 0.4% year over year.
Growth in the active customer base positively impacted results. Active customers were up 1.4% year over year to 22.4 million and beat the consensus mark by 0.51%.
LTM net revenues per active customer decreased 3% year over year to $537, which beat the Zacks Consensus Estimate by 0.05%.
Wayfair Inc. Price, Consensus and EPS Surprise
Wayfair Inc. price-consensus-eps-surprise-chart | Wayfair Inc. Quote
Quarter Details
Net revenues in the United States (87% of total net revenues) increased 0.9% year over year to $2.7 billion. The figure beat the Zacks Consensus Estimate by 0.08%.
International net revenues (13% of total net revenues) declined 2.7% year over year and 4.6% on a constant currency basis to $404 million. It also beat the consensus mark by 4.9%.
Orders per customer for the quarter were 1.84, up from 1.81 reported in the year-ago quarter. The figure was in line with the Zacks Consensus Estimate of 1.84.
The average order value declined 2.5% year over year to $276, which beat the consensus mark by 2.99%.
The total number of orders delivered in the reported quarter was 11.3 million, which increased 2.7% year over year.
Repeat customers placed 9 million orders (accounting for 79.4% of total orders) in the fourth quarter, up 5.9% year over year.
Additionally, 62.8% of total orders delivered were placed through mobile devices in the reported quarter compared with 61.7% in the year-ago quarter.
Operating Results
Wayfair’s fourth-quarter gross margin was 30.3%, expanding 150 basis points on a year-over-year basis.
Adjusted EBITDA was $92 million against an EBITDA loss of $71 million in the year-ago quarter.
Customer service and merchant fees decreased 15.3% year over year to $138 million.
Advertising expenses fell 6.2% year over year to $381 million. Selling, operations, technology and general and administrative expenses decreased 8.9% year over year to $597 million.
Wayfair incurred a GAAP operating loss of $172 million in the reported quarter compared with an operating loss of $330 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash, cash equivalents and short-term investments were $1.4 billion, up from $1.28 billion reported on Sep 30, 2023.
Long-term debt, as of Dec 31, 2023, was $3.092 billion compared with $3.207 billion on Sep 30.
In the fourth quarter, cash generated from operations amounted to $158 million compared with $121 million generated from operations in the third quarter.
Wayfair generated a free cash flow of $62 million in the reported 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 American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch (ANF - Free Report) and The Gap (GPS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters shares have gained 8.6% year to date. AEO is scheduled to release fourth-quarter 2023 results on Mar 7.
Abercrombie & Fitch shares have gained 37.4% year to date. ANF is set to report its fourth-quarter 2023 results on Mar 6.
The Gap shares have declined 8.7% year to date. GPS is set to announce fourth-quarter 2023 results on Mar 7.