Shares of online home-decor retailer Wayfair Inc. (W) jumped more than 22% on Friday to $143.95 after the company reported an increase in sales as well as a surge in active customers, though revealed a wider adjusted loss.
Wayfair said it lost $143.8 million, or $1.12 a share, vs. a year-earlier loss of $50.9 million, or 58 cents. Analysts surveyed by FactSet had expected a loss of $1.28 a share. Direct retail revenue increased 41% to $1.99 billion vs. $1.41 billion in the year-earlier quarter.
The online retailer's number of active customers jumped 38% to 15.2 million during the quarter; orders per customer came in at 1.85 vs. 1.77 a year ago. Average order value was $227 vs. $229, while repeat customers placed 66.4% of total orders in the fourth quarter compared with 62.4% in the fourth quarter of 2017.
Insider tip: Treat a faded antique-style rug as a neutral to make any room feel designer-curated. The muted colors complement any space, and add a subtle pattern. #Wayfair https://t.co/edxPPYORTm pic.twitter.com/BGmaysK8zA— Wayfair.com (@Wayfair) February 19, 2019
"Our offering is resonating more and more with our customers in North America and Europe, and we see clear parallels in the progress of our businesses in Canada, the United Kingdom and Germany and the successful course of Wayfair.com in the U.S. at similar stages of development," Wayfair CEO Niraj Shah said in a statement.
Wayfair generated gross profit of $585 million, or 24% of sales, and recorded an adjusted EBITDA loss of $54 million, narrower than the $76 million expected by analysts. For the full year, the company posted a net loss of $504.1 million, or $4.09 a share, vs. $244.6 million, or $1.96 a share, in 2017. The company's year-end cash position was $970 million.