Wayfair's first quarter revenue jumped nearly 20% as customers used the online furniture retailer to equip home offices and buy home goods amid the COVID-19 pandemic.
While Amazon was an obvious e-commerce go-to for consumers, Wayfair also signaled that it was performing well. The company's logistic and supply chain held up well as rival brick-and-mortar retailers were shut down.
In thefirst quarter, Wayfair said revenue was $2.3 billion, up $385.2 million and 19.8% from a year ago. Wayfair reported a first quarter net loss of $285.9 million, or $3.04 a share. The non-GAAP loss for the first quarter was $2.30 a share. Wall Street was looking for a first quarter loss of $2.60 a share on revenue of $2.31 billion.
The results were in line with what Wayfair projected in April. CEO Niraj Shah said Wayfair implemented new processes to meet demand during the COVID-19 disruption. Wayfair's sites include Wayfair, Joss & Main, AllModern, Birch Lane and Perigold.
Shah said on a conference call with analysts that the company was able to transition to a remote work model seamlessly. Wayfair already had a hybrid call center split between work-from-home and office and fulfillment centers adopted new processes to keep employees healthy in the COVID-19 pandemic.Shah said:
Shah did note that Wayfair wasn't betting on the current revenue run rates to continue, but there is a change in repeat purchases and a larger customer base.
Shah added that "millions of new shoppers have discovered Wayfair while they shelter in place at home, and we are seeing strong acceleration in new and repeat customer orders across almost all classes of goods and across all regions."
Wayfair's goal now is to bolster gross margins and move toward profitability.
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