Wayfair, the online home furnishing retailer, has seen a big growth in its business over the past year, according to its Q2 2016 earnings call on Tuesday (Aug. 9).
Wayfair announced that its direct retail revenue, which comes from sales on the Wayfair.com, Joss & Main, AllModern, Birch Lane and DwellStudio eCommerce sites, jumped 71.6 percent over the previous year to $755.7 million in the second quarter, which ended June 30.
Online sales now account for 96 percent of Wayfair’s business, up from 90 percent during the same quarter last year.
“Wayfair continues to take between a third and 40 percent of the online dollar growth in our categories in the U.S.” Wayfair CEO and Cofounder Niraj Shah said in a statement. “There is a secular shift underway as consumers shift home purchases away from brick-and-mortar stores and toward online purchases. We believe that the strength of our offering, including vast product selection, beautiful visual merchandising, helpful customer service and quick shipping and delivery, has positioned us as beneficiaries of that trend and allowed us to take such a significant share of the dollars as they move online.”
Wayfair also announced changes to its logistics and fulfillment models so it can ship products to customers faster, which the company hopes will lead to even more sales growth.
“We are leveraging our expertise in technology and data across all areas of the business, with a strategic focus on the expansion and optimization of our warehousing, transportation and logistics infrastructure,” according to Shah. “As a result of these key initiatives, we are speeding up delivery times and reducing damage rates to make the retail experience for home more seamless and satisfying than ever before for our customers.”
But with changes in its logistics and fulfillment practices could come additional costs to Wayfair that might negatively impact any future earnings.
Wayfair’s stock was trading at around $38.24 a share on Thursday (Aug. 11), up 1.38 percent.
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