Wayfair
stock is making strides in premarket trading after the online furniture retailer flew past estimates for its second quarter.
Wayfair (ticker: W) posted adjusted earnings of 21 cents a share, while Wall Street had forecast a loss of 73 cents, according to FactSet. Net loss for the quarter was 41 cents a share, or $46 million. Total net revenue of $3.17 billion beat the estimate for $3.10 billion. Active customers for the period fell 7.6% to 22 million from a year ago.
Net revenue per active customer in the latest 12 months ended June 30 inched up to $545 from $537. Wayfair says the metric is “a key indicator of our customers’ purchasing patterns, including their initial and repeat purchase behavior.”
CEO Niraj Shah said in the earnings release that Wayfair has been working to “lower…costs, focus on the basics and earn more customer and supplier loyalty.”
And it’s working. For its second quarter, the company reported adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $128 million and free cash flow of $128 million, compared with Ebitda of negative $108 million and free cash flow of negative $244 million a year ago.
The company has been working on slashing costs after a series of wider-than-expected losses. In January, the company said it was laying off 10% of its global staff, amounting to approximately 1,750 employees, on top of 870 positions eliminated in August.
Wayfair stock is up 7.6% in premarket trading. Coming into Thursday’s trading session, the stock price has more than doubled this year.
Write to Emily Dattilo at [email protected]
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