Q4 a “definitive step” in Wayfair’s road to profitability

Global online furniture retailer Wayfair has reported a slight increase in fourth quarter sales as full year revenues declined.

According to its latest trading update for its fourth quarter and full year ended 31 December 31 2023, total Q4 sales rose 0.4% to $3.1bn, representing an uptick of $13m in sales. US revenues rose 0.9% to $3.1bn, while International sales decreased by 2.7% to $404m. Net loss resulted at $174m, while Adjusted EBITDA was $92m.

During the quarter, Wayfair did see an increase in active customers, which totalled 22.4 million, up 1.4% year-over-year.

As for the full year, sales were down 1.8% to $12bn, a reduction by $215m, with US sales rising 0.2% to $10.5bn. International sales suffered a decline of 13.3% to $1.5bn. Net loss stood at $738m and Adjusted EBITDA was $306m.

Niraj Shah, CEO, co-founder and co-chairman, Wayfair, said: “Q4 was another definitive step on our profitability journey and a reflection of the immense progress we achieved throughout the entire year. Even in a difficult macro environment, we generated a 3% Adjusted EBITDA Margin and had our third consecutive quarter of positive Adjusted EBITDA and Free Cash Flow. In fact, on a revenue base that largely mirrored 2022, our Free Cash Flow in 2023 improved by more than one billion dollars.

“Our efforts over 2023 led to large improvements in our core recipe across availability, speed and price competitiveness. These improvements were directly responsible for our robust share expansion throughout the year and for the step-up we saw in customer loyalty, including year-over-year growth in our active customer count by the fourth quarter.”

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