Wayfair Q3 Results: Earnings Beat Street, But Sales And Customer Base Decline

Wayfair Inc. W shares are trading lower on Friday.

The company reported third-quarter adjusted earnings per share of 22 cents, beating the street view of 13 cents. Quarterly sales of $2.884 billion (down 2%) topped the analyst estimate of $2.876 billion.

U.S. net revenue was $2.5 billion, down $60 million or 2.3% year over year. International net revenue was $372 million, with constant currency growth unchanged.

“Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit Adjusted EBITDA margin for the second quarter in a row,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. 

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Gross profit totaled $873 million (year-ago $917 million), representing 30.3% of total net revenue.

As of September 30, there were 21.7 million active customers, a 2.7% decrease from the previous year.

In the third quarter, 9.3 million orders were delivered, down 6.1% year over year.

“The core goal across each of our initiatives in 2024 is to foster customer loyalty and spur repeat business while driving economic value,” Shah added.

Mobile devices accounted for 63% of total orders delivered in the third quarter, up from 61.7% year over year.

The company exited the quarter with cash and equivalents worth $1.3 billion. Inventories as of quarter end totaled $81 million. Long-term debt at the end of the third quarter was $3.061 billion.

Needham analyst Bernie McTernan reiterated Wayfair with a Buy and maintained a $60 price target.

Price Action: W shares are trading lower by 2.6% to $41.72 at last check Friday.

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