Wayfair's active buyers dropped 23.4% in Q1! Revenues fell, losses widened, and stock prices plummeted!

Wayfair reported a larger-than-expected loss in its 2022Q1 financial report, mainly due to a significant reduction in buyers' spending on home furnishings. Wayfair's stock price plummeted 26% on Thursday after the financial report was released. Wayfair's stock price has fallen 74% in the past six months. At the same time, the stock prices of its competitors have also generally fallen, such as Etsy's stock price fell 17%, eBay and Amazon's stock prices fell 11% and 8%, respectively.

Wayfair's Q1 quarterly financial report shows that the number of active buyers fell 23.4% year-on-year to 25.4 million. The total order volume was 10.4 million, a year-on-year decrease of 29.0%. The average number of orders per person was 1.87, compared with 1.98 in the same period last year. The average order amount per person was US$287, compared with US$237 in the same period last year. The number of orders from repeat customers has also declined since 2021, reaching 8.1 million in the first quarter, a decrease of 26% from the same period last year. 59.4% of the total orders delivered came from mobile devices, compared with 60.0% in the same period last year.

Revenue fell nearly 14% to $2.99 ​​billion from $3.48 billion a year ago, in line with analysts' estimates. U.S. revenue fell 9.9% year-on-year to $2.5 billion, while international revenue fell 31.4% year-on-year to $451 million.

Wayfair lost $319 million in the first quarter, a loss of $3.04 per share, far below the $18 million profit predicted by analysts, and an adjusted loss of $1.96 per share, 40 cents lower than analysts' forecasts. Wayfair's net income in the same period last year was $18 million, with earnings per share of 16 cents. Gross profit was $803 million.

It is learned that the outbreak of the epidemic has greatly promoted the development of Wayfair. The long-term home isolation has prompted a large number of American consumers to turn to online purchases of furniture, home decorations and office furniture. The sharp increase in orders has also brought challenges to Wayfair. For this reason, Wayfair said it has been working hard to deal with problems such as order delays and supply chain disruptions.

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