Wayfair Inc.’s sales grew nearly 20% in its first quarter as Americans spruced up their homes during the COVID-19 outbreak. The online home furnishings giant, which has yet to report a profit, posted a net loss of $285.87 million, or $3.04 a share, for the quarter ended March 31, compared with a net loss of $200.39 million, or $2.20 per share, in the year-ago period.
“Kicking off the year over a quarter of a billion dollars in the red is far from auspicious, The source of the woe is, as it has always been, marketing costs. This quarter, Wayfair spent around $275 million on advertising – a 13% increase over the same period last year. This represents $13 for every active customer. As traditional shops reopen, some of the trade gained during the lockdown period will drift back to regular patterns of buying,” he said. “This is especially so for furniture where being able to see and feel products in person remains vital for many shoppers.” – Analyst Neil Saunders, managing director of GlobalData Retail.
