Wayfair Inc., the home furnishings e-Commerce retailer, reported record-breaking revenue during the second quarter, when the company launched its first-ever online Way Day sale and continued enhancements in its efforts to add new technology to its logistics and supply chain network.
Wayfair reported direct retail net revenue, which measures sales going through the company’s online sites, rose about 49 percent to $1.6 billion, the largest year-over-year increase in the company’s history.
Quarterly revenue beat Wall Street estimates, leading shares higher in early afternoon trading. Shares of Wayfair were up 6.9 percent at $114.62.
Sales were fueled by its special Way Day single-day sale during April, which the company said was the first-ever retail holiday sale for the home goods category, set a company record for single-day sales.
The company reported a non-GAAP loss of $68.9 million, or 77 cents in the quarter, compared with a loss of $22.7 million or 22 cents in the year-ago quarter. The retailer was expected to report a loss of 72 cents a share, according to Zack’s.
The company reported a net loss of $100.7 million, compared with $39.9 million a year ago, however the per share loss was basic and diluted.
Wayfair reported a number of positive metrics during the quarter, as active customers in its direct retail business increased 34 percent from the year-ago quarter to 12.8 million. LTM net revenue per active customer rose 9.5 percent to $440 by the end of June.
The company said 49.2 percent of orders by its direct retail business during the quarter were delivered on a mobile device, compared with 44.1 percent a year ago. Wayfair said orders placed during the quarter rose 50.8 percent from a year-ago to 6.5 million.
Repeat customers placed 66 percent of orders during the quarter, compared with 61.3 percent a year ago. Repeat customers placed 4.3 million orders, a 62.3 percent increase from a year ago.
Wayfair officials said the company was continuing to invest in key areas, including logistics, headcount and its international business to help fuel growth in a business where it sees a $600 billion untapped market.
CEO Niraj Shah outlined efforts the company is making to reduce reliance on third-party companies in its logistics network. He said the company now runs about 25 of its own last mile delivery facilities in the U.S. and controls 63 percent of large parcel deliveries in the U.S. and 40 percent of those in Canada.
He said the company is also taking control of its middle mile portion of delivery. In June about 90 percent of large parcel deliveries in the U.S. came in through Wayfair controlled networks, allowing the company to offer faster, more controlled deliveries.
The company is taking steps to offer greater control over importing goods from overseas manufacturers. In 2017, the company got an NVOCC license from the Federal Maritime Commission and now has obtained approval from Chinese and Canadian authorities for a pilot program where its shipping goods on from facilities in Asia to the U.S., as shipping containers were often half filled with goods in the past.
The company is also working to improve its ability to merchandise products in the outdoor category, such as jacuzzis, saunas, patio tables and other goods. He said brick-and-mortar retailers have a shorter selling season to display those goods in order to save floor space.
“We work closely with suppliers to help them predict demand for their products on Wayfair leveraging the vast customer analytics and data we have,” he told analysts.
The company has also hired additional workers to help in merchandising, marketing and customer service. The company is offering special customer service workers to help customers with delivery problems and offering design services specialists to help customers make selections on decor choices.
The company also reported that it has made significant inroads in its international business, specifically its expansion in Canada, the U.K. and Germany.