Boston, Massachusetts – Wayfair, the online furniture giant, surpassed Wall Street’s expectations in its recent financial report. The company reported a narrower loss per share and higher revenue than analysts had predicted. Following the news, Wayfair’s shares increased up to 9% in premarket trading on Thursday.
In the three-month period ending March 31, Wayfair reported a net loss of $248 million, an improvement from the $355 million loss in the same period last year. Excluding one-time items, the company posted a loss of 32 cents per share. Despite the overall decrease in sales from $2.77 billion to $2.73 billion, Wayfair’s international segment experienced the sharpest decline, with sales dropping nearly 6% to $338 million.
Despite the challenges faced, Wayfair’s CEO Niraj Shah expressed optimism, stating that the quarter ended on a positive note. The company saw a rise in active customer growth, further accentuating its upbeat outlook for the future.
Like other online retailers, Wayfair had to implement layoffs as sales fluctuated during and after the pandemic. In January, the company announced plans to cut 13% of its global workforce to reduce costs. This restructuring was projected to save Wayfair around $280 million. The company’s efforts to streamline operations led to a $107 million reduction in losses during the fiscal first quarter.
Additionally, Wayfair managed to increase its active customer count to 22.3 million, slightly exceeding analysts’ expectations. While the average order value was higher than anticipated during the quarter, it fell compared to the previous year due to changes in pricing strategies.
Looking ahead, Wayfair continues to navigate its path to profitability amidst challenges in the home goods sector. The company remains focused on enhancing its customer experience to drive growth and long-term success in the competitive e-commerce landscape.