Pandemic Continues to Fuel Online Demand and Wayfair Orders
WAYFAIR'S Third QUARTER customer HIGHLIGHTS
- Orders per customer, measured as LTM orders divided by active customers, was 1.94 for the third quarter of 2020, compared to 1.85 for the third quarter of 2019.
- Repeat customers placed 71% of total orders in the third quarter of 2020, compared to 67.3% in the third quarter of 2019.
- Repeat customers placed 11.3 million orders in the third quarter of 2020, an increase of 84.4% year over year.
Wayfair posted yet another quarter that beat out analysts’ estimates as consumers continue to invest in their homes and adopt mobile shopping. The online home furnishings retailer delivered 15.8 million orders in the third quarter of 2020, a 72% spike year over year.
“In the midst of continued uncertainty about the economy and the pandemic, Wayfair delivered another quarter of strong operating and financial results in Q3,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “Category momentum is vibrant, demand is moving online at an accelerated pace, and we expect the home to be even more important than usual when it comes to celebrating the holidays this year.”
Total revenue jumped 66% to $3.8 billion from $2.31 billion, topping estimates of $3.66 billion, in the third quarter. In the previous quarter revenue soared 83% to $4.30 billion, easily beating analysts’ forecasts of $4.07 billion.
“Our long-term mindset and strategic investments in merchandising, selection, service and delivery both in North America and in Europe are translating to share gains, sustained profitability, and positive free cash flow generation,” said Shah. “While today’s unique environment has accentuated these trends, we are confident that there is a long runway for continued strong profitable growth ahead for Wayfair -- well beyond when the current circumstances have passed.”
The retail said active customers in its Direct Retail business reached 28.8 million as of September 30, 2020, up 50.9% year over year. In Q3, 60% of total orders delivered for Wayfair’s Direct Retail business were placed via a mobile device, compared to 53% in the third quarter of 2019. Average order value though dropped to $243 for Q3, compared to $252 for Q3 2019.