Online home-goods retailer, Wayfair (NYSE: W), reported a wider-than-expected first-quarter loss on Thursday. The Company announced a loss of USD 200.4 Million, or USD 2.20 a share. Adjusted, it lost USD 1.62 a share, compared to analysts’ consensus of USD 1.60.
Revenue climbed 39% year-over-year to USD 1.95 Billion. Wayfair paid a hefty price for that growth, however. Each new customer came at the cost of USD 88, up from USD 77 per customer in the fourth quarter. The furniture merchant reached 14.9 active customers in the first three months of 2019, up 39% the year-quarter prior. The Company reported 53% of all orders from Wayfair's direct retail business were placed on a mobile device, up from 49% in the first quarter of 2018.
"Our ongoing investments in building our logistics infrastructure, deepening our product offering, and finding new ways to serve our customer are just a few of the many areas that are driving the momentum we are seeing today” said Wayfair CEO, Niraj Shah.
While Wayfair has nearly perfected the logistics of selling and delivering furniture online, it’s yet to see a profit- and there’s plenty of profit to be made. According to Statista, worldwide online furniture sales are expected to grow at an average annual rate of 11.9% between 2018 and 2022, resulting in a market volume of USD 294 Billion in 2022.
In an effort to reach profitability and build brand loyalty, the Boston-headquartered company announced its first physical store will open in Natick, Massachusetts in early fall. The Company plans to open four pop-up shops as well this summer.
Shares of Wayfair are up 105% over the past 12 months.