Wayfair Reports Better-Than-Expected Second-Quarter Results

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Wayfair (W) on Thursday reported better-than-expected results for the second quarter as online home-goods retailer saw a nearly 40% jump in active customers from the year before.

The Boston-based company said its loss for the quarter ended June 30 widened to $1.35 on diluted non-GAAP basis from $0.77 in the prior-year period. Capital IQ had expected a loss of $1.37. Net revenue rose to $2.34 billion from $1.66 billion last year, ahead of the Street’s view for $2.26 billion.

“We are very pleased to report another strong quarter with direct retail revenue up $691 million, an increase of 42% year over year,” Chief Executive Niraj Shah said.

Wayfair said US revenue rose to $2 billion from $1.41 billion while international revenue advanced to $342.7 million from $243.9 million.

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Operating expenses rose to $730.8 million from $480.3 million, while selling, operations, technology, general and administrative costs advanced to $383.1 million from $241 million. Advertising spending rose to $259.2 million from $177.6 million, and customer service and merchant fees were $88.5 million, up from $61.8 million.

“As we continue to strengthen our global logistics network through the addition of Castlegate warehouses and last mile delivery systems, we are driving cost of efficiencies and building an unparalleled experience for our customers with even faster delivery,” Shah said, referring to the company’s logistics unit. “We look forward to building on this tremendous momentum as we continue to scale our operations and capture an out-sized share of the consumer spending moving online in our market segment.”

 
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