Wayfair losses reach $1.3bn as sales and customers decline

Global online furniture retailer Wayfair has reported a decline in both fourth quarter and full year sales.

According to its latest Q4 trading update, total sales fell 4.6% to $3.1bn, down $151m, with net losses standing at $351m.

As for its full year results ended 31 December 2022, revenues declined 10.9%, or by $1.5bn, to $12.2bn. This marked a second consecutive year of falling sales from 2020 when revenues reached $14.1bn. US net revenue for the year decreased 7% to $10.5bn, while International sales fell 28.7% to $1.8bn.

Net loss was $1.3bn, significantly widening from a loss of $131m, while adjusted EBITDA slipped to a loss of $416m from a profit of $614m recorded in 2021.

Wayfair said that active customer numbers fell 19% year-on-year to 22.1 million from 27 million, while repeat customers placed 77.4% of total orders delivered in the fourth quarter, compared to 76.3% against the same period last year.

Wayfair forecasts that it will achieve a breakeven adjusted EBITDA during 2023, which includes the execution of “$1.4bn of annualised cost action across the organisation”.

Niraj Shah, CEO, co-founder and co-chairman, Wayfair, commented: “We enter 2023 as a lean, focused team driven by the same key priorities that defined much of 2022 – driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day.

“Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and are reiterating our commitment to quickly reaching adjusted EBITDA profitability and then to positive free cash flow.”

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