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Wayfair W reported first-quarter 2025 non-GAAP earnings of 10 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 18 cents. The company had incurred a loss of 32 cents per share in the year-ago quarter.
Net revenues of $2.7 billion beat the consensus mark by 0.7%. The top line increased a mere $1 million year over year, driven by a healthy performance in the U.S. segment.
Last Twelve Months (LTM) net revenues per active customer increased 4.7% year over year to $562, which beat the Zacks Consensus Estimate by 7.68%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Further, the active customer base declined. The metric decreased 5.4% year over year to 21.1 million and missed the consensus mark by 5.8%.
Wayfair Inc. Price, Consensus and EPS Surprise
Wayfair Inc. price-consensus-eps-surprise-chart | Wayfair Inc. Quote
Wayfair’s Q1 in Details
Net revenues in the United States (88.9% of total net revenues) increased 1.6% year over year to $2.4 billion. The figure beat the Zacks Consensus Estimate by 1.55%.
International net revenues (11.1% of total net revenues) decreased 10.9% year over year to $301 million. The number missed the consensus mark by 2.77%.
Orders per customer for the quarter were 1.85, up from 1.84 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.35%.
The average order value increased from $285 to $301 year over year, beating the consensus mark by 4.89%.
The total number of delivered orders in the reported quarter was 9.1 million, which decreased 5.2% year over year.
Repeat customers placed 7.3 million orders (80.5% of total orders delivered) in the first quarter, down 5.2% year over year.
Additionally, 63.4% of total delivered orders were placed through mobile devices in the reported quarter compared with 63.1% in the year-ago quarter.
Operating Results of Wayfair
Wayfair’s first-quarter gross margin was 30.7% compared with 30% in the year-ago quarter. This was driven primarily due to company’s proactive reinvestments.
Adjusted EBITDA was $106 million, up from $75 million in the year-ago quarter.
Customer service and merchant fees decreased 8.5% year over year to $107 million.
Advertising expenses increased 6.2% year over year to $344 million. Selling, operations, technology and general and administrative expenses decreased 19.7% year over year to $429 million.
Wayfair incurred a GAAP operating loss of $122 million in the reported quarter compared with an operating loss of $235 million in the year-ago quarter.