Wayfair's Q2 earnings top estimates, revenue growth slows following pandemic surge
Online retail giant Wayfair delivered mixed second quarter results on Thursday, with revenue slightly missing estimates as the pandemic-induced home spending spree begins to wind down. Wayfair said second quarter revenue was $3.9 billion, down 10.4% from a year ago, with net income of $130 million, or $1.14 a share. Adjusted non-GAAP earnings for the first quarter were $1.89 a share.
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Wall Street was expecting non-GAAP second quarter earnings of $1.17 a share on revenue of $3.96 billion.
The company's US revenue declined 15.2% to $3.1 billion while international sales were up 16%.
Elsewhere on the balance sheet, Wayfair said active customers for direct retail were 31.1 million, up 19% from a year ago. The number of orders per customer were 1.96 in the second quarter. Repeat customers placed 75.6% of total orders in the quarter, while average order value was $278, up from $227 a year ago. Out of all orders, Wayfair said 59% were placed on a mobile device.
Wayfair -- which runs a handful of websites including Joss and Main, AllModern, Birch Lane and Perigold -- delivered consistently strong results throughout the COVID-19 pandemic, as furniture and other home-focused retailing moved online. Like other pandemic beneficiaries in the retail space, Wayfair is seeing sales trend back to pre-pandemic levels as consumer spending habits shift once again.
Nonetheless, Wayfair CEO Niraj Shah said the home continues to be a dominant category of e-commerce and net revenue remains well above pre-pandemic run-rates.
"Wayfair delivered $3.9 billion in net revenue in Q2 even as we began to lap the early heights of COVID-related lockdowns in 2020," Shah said. "While the current macro environment is dynamic, the home remains a high priority for our customers and longer term tailwinds to online category growth are firmly in place. Meaningful adjusted EBITDA and free cash flow in Q2 also reflect strong returns from many years of thoughtful investments behind each facet of our platform model. Even as we navigate any near-term volatility, we remain most focused on the long-term and further reinforcing Wayfair's position as the category leader for home with both customers and suppliers alike."
Shares of Wayfair were up slightly in early trading.