Wayfair, after cutting its losses in its fourth quarter, reported it is preparing for a year ahead that will include further business improvements and the launch of new initiatives, including the first Wayfair banner store and a brand refresh.
Net loss was $174 million, or $1.49 per diluted share, versus a net loss of $351 million, or $3.26 per diluted share, in the year-prior quarter. Adjusted for one-time events, net loss was $12 million, or 11 cents per diluted share, versus a net loss of $184 million, or $1.71 per diluted share, in the year-earlier quarter, the company reported
Wayfair bettered a Yahoo Finance-published analyst consensus estimate that anticipated a loss of 16 cents per adjusted diluted share, and the company matched a revenue estimate.
Net revenue was $3.11 billion compared to $3.1 billion in the year-before quarter. Loss from operations was $172 million versus $330 million in the year-previous period.
Net revenue in the United States was $2.71 billion, while that from international operations was $404 million versus $2.69 billion and $415 million, respectively, in the year-past quarter.
Wayfair’s active customers totaled 22.4 million as of December 31, 2023, up 1.4% year over year. Average order volume came in at $276 compared to $283 in the year-past period.
For the full fiscal year, the net loss was $738 million, or $6.47 per diluted share, versus a net loss of $1.33 billion, or $12.54 per diluted share, in the year prior. The company stated that the adjusted net loss was $127 million, or $1.13 per diluted share, versus an adjusted net loss of $818 million, or $7.71 per diluted share, in the year earlier.
Net revenue was $12 billion compared to $12.22 billion in the fiscal year before. Loss from operations was $813 million versus a loss from operations of $1.38 billion in the year previous.
In a conference call, Niraj Shah, Wayfair co-founder, CEO and co-chairman, said efforts initiated in 2023 focused on reemphasizing business basics and driving customer and supplier loyalty took hold and supported operational improvements that translated into share expansions and an increased active customer count. The company also amended its cost structure, which allowed Wayfair to reinvest in customer experience. Shah added the 2023 initiatives and the resulting business improvements carried forward into 2024.
Shah also commented on some of the high points expected by the company in the coming year, including the March rollout of an updated brand campaign, which, he said, includes “a vibrant refresh to the Wayfair brand with new merchandising, new marketing and new ways to connect with our shoppers.” Wayfair plans a May opening of its first full-line Wayfair-branded store (rendering pictured above). Located in metro Chicago, the physical store will give the company a chance to showcase the breadth and depth of its product offering in a new way. In the fall, Wayfair will introduce a new non-tender loyalty program available to anyone regardless of payment method, rather than one tied to a specific credit card or financing product.
In announcing the financial results, Shah said, “Q4 was another definitive step on our profitability journey and a reflection of the immense progress we achieved throughout the entire year. Even in a difficult macro environment, we generated a 3% adjusted EBITDA margin and had our third consecutive quarter of positive adjusted EBITDA and free cash flow. In fact, on a revenue base that largely mirrored 2022, our free cash flow in 2023 improved by more than one billion dollars. Our efforts over 2023 led to large improvements in our core recipe across availability, speed and price competitiveness. These improvements were directly responsible for our robust share expansion throughout the year, and for the step-up, we saw in customer loyalty, including year-over-year growth in our active customer count by the fourth quarter.”
