Need to Know
- The online furniture and housewares retailer reported Q2 sales of $4.3-billion, a year-over-year increase of 83.7%.
- The entirely-digital retailer received 12.7 million orders during the quarter, with orders from repeat customers increasing by 105% compared to the same period in 2019.
- Wayfair has 26 million active customers, with the average individual order costing $227. The retailer delivered 18.9 million orders over the quarter—more than double the number from this time in 2019
- Sales bump can be attributed to the rise of e-commerce and work-from-home situations during COVID-19 lockdowns; the average customer order value was $227.
Wayfair, the online-only housewares retailer, posted its Q2 earnings this week, with the company reporting total sales for the quarter at $4.3-billion—an increase of 83.7% over this time last year.
More notably, the company reported a profit of $1.3-billion for the quarter. Wayfair, historically, has been a largely unprofitable company, having at the end of 2019 announced its 21st consecutive quarterly loss since going public five years prior.
The bump is a substantial one not only year-over-year, but since last quarter, as well: in Q1 2020, Wayfair reported revenue growth of 20% year-over-year, to $2.3 billion, but was not profitable at the time, despite the spike.
“We are all currently living and operating in uncertain times, which are dominated by the global pandemic as well as pressing social issues,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair. “In this environment, Wayfair remains fully committed to supporting our customers, our employees, and our broader communities, while continuing to operate with excellence. The second quarter was a very strong period for Wayfair. Our strategic long term investments positioned us well to
serve our customers and to quickly adapt during a challenging time.”
Net income for Wayfair for Q2 was $273.9 million, compared to a $181.9 million loss this time last year.
The company received 12.7 million orders during the quarter, and 26 million active customers, with the average individual order costing $227. The company delivered 18.9 million orders over the quarter—more than double the number from this time in 2019. COVID-19 lockdowns, which have pushed consumers strongly towards e-commerce while confining many to their homes (which could result in many individuals making home purchases and home-improvement investments) are in part to thank for Wayfair’s Q2 success.
Wayfair’s sales were high for Q2, but so were its costs: ad spend was reported at $417.8 million, an increase of more than 60% from Q2 2019.