We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wayfair (W) Q2 Earnings Miss Estimates, Revenues Down Y/Y
Read MoreHide Full Article
Wayfair (W - Free Report) reported second-quarter 2024 non-GAAP earnings of 47 cents per share, missing the Zacks Consensus Estimate by 6%. The company reported earnings of 21 cents per share in the year-ago quarter.
Net revenues of $3.12 billion lagged the consensus mark by 2%. The top line decreased 1.7% year over year.
LTM net revenues per active customer decreased 0.9% year over year to $540, which beat the Zacks Consensus Estimate by 1.5%.
Nevertheless, growth in the active customer base remained positive. Active customers increased 0.9% year over year to 22 million and missed the consensus mark by 2.1%.
Net revenues in the United States (87.6% of total net revenues) decreased 2% year over year to $2.73 billion. The figure missed the Zacks Consensus Estimate by 2.2%.
International net revenues (12.4% of total net revenues) grew 0.3% year over year and 1.3% on a constant currency basis to $387 million. It beat the consensus mark by 1.8%.
Orders per customer for the quarter were 1.85, up from 1.82 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 1.1%.
The average order value increased 2% year over year to $313, which beat the consensus mark by 1.9%.
The total number of orders delivered in the reported quarter was 10 million, which decreased 2.9% year over year.
Repeat customers placed 8.1 million orders (accounting for 81.7% of total orders) in the second quarter, down 2.4% year over year.
Additionally, 63.7% of total orders delivered were placed through mobile devices in the reported quarter compared with 61.6% in the year-ago quarter.
Operating Results
Wayfair’s second-quarter gross margin was 30.2%, contracting 90 basis points on a year-over-year basis.
Adjusted EBITDA was $163 million, up from $128 million in the year-ago quarter.
Customer service and merchant fees decreased 16% year over year to $121 million.
Advertising expenses increased 3.7% year over year to $365 million. Selling, operations, technology and general and administrative expenses decreased 22.4% year over year to $489 million.
Wayfair incurred a GAAP operating loss of $35 million in the reported quarter compared with an operating loss of $142 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and short-term investments were $1.34 billion, up from $1.2 billion reported on Mar 31, 2024.
Long-term debt, as of Jun 30, 2024, was $3.059 billion compared with $3.095 billion on Mar 31, 2024.
In the second quarter, cash from operations amounted to $245 million compared with $139 million used in operations in the first quarter.
Wayfair reported a free cash flow of $183 million in the second quarter.
Image: Bigstock
Wayfair (W) Q2 Earnings Miss Estimates, Revenues Down Y/Y
Wayfair (W - Free Report) reported second-quarter 2024 non-GAAP earnings of 47 cents per share, missing the Zacks Consensus Estimate by 6%. The company reported earnings of 21 cents per share in the year-ago quarter.
Net revenues of $3.12 billion lagged the consensus mark by 2%. The top line decreased 1.7% year over year.
LTM net revenues per active customer decreased 0.9% year over year to $540, which beat the Zacks Consensus Estimate by 1.5%.
Nevertheless, growth in the active customer base remained positive. Active customers increased 0.9% year over year to 22 million and missed the consensus mark by 2.1%.
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 (87.6% of total net revenues) decreased 2% year over year to $2.73 billion. The figure missed the Zacks Consensus Estimate by 2.2%.
International net revenues (12.4% of total net revenues) grew 0.3% year over year and 1.3% on a constant currency basis to $387 million. It beat the consensus mark by 1.8%.
Orders per customer for the quarter were 1.85, up from 1.82 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 1.1%.
The average order value increased 2% year over year to $313, which beat the consensus mark by 1.9%.
The total number of orders delivered in the reported quarter was 10 million, which decreased 2.9% year over year.
Repeat customers placed 8.1 million orders (accounting for 81.7% of total orders) in the second quarter, down 2.4% year over year.
Additionally, 63.7% of total orders delivered were placed through mobile devices in the reported quarter compared with 61.6% in the year-ago quarter.
Operating Results
Wayfair’s second-quarter gross margin was 30.2%, contracting 90 basis points on a year-over-year basis.
Adjusted EBITDA was $163 million, up from $128 million in the year-ago quarter.
Customer service and merchant fees decreased 16% year over year to $121 million.
Advertising expenses increased 3.7% year over year to $365 million. Selling, operations, technology and general and administrative expenses decreased 22.4% year over year to $489 million.
Wayfair incurred a GAAP operating loss of $35 million in the reported quarter compared with an operating loss of $142 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and short-term investments were $1.34 billion, up from $1.2 billion reported on Mar 31, 2024.
Long-term debt, as of Jun 30, 2024, was $3.059 billion compared with $3.095 billion on Mar 31, 2024.
In the second quarter, cash from operations amounted to $245 million compared with $139 million used in operations in the first quarter.
Wayfair reported a free cash flow of $183 million in the second quarter.
Zacks Rank & Stocks to Consider
Currently, Wayfair has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader retail-wholesale sector are The Gap (GPS - Free Report) , Amazon (AMZN - Free Report) and Best Buy (BBY - Free Report) . While The Gap sports a Zacks Rank #1 (Strong Buy), Amazon and Best Buy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has gained 11.2% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 3.38%.
Shares of Amazon have gained 19.6% in the year-to-date period. The long-term earnings growth rate for AMZN is currently projected at 29.60%.
Best Buy has gained 11.5% in the year-to-date period. The long-term earnings growth rate for BBY is currently anticipated at 5.07%.