Wayfair (W)1Q16 REVIEW: SALES EXCEED ESTIMATES WHILE EARNINGS MISS

Executive Summary

• Wayfair reported adjusted FY1Q16 EPS of ($0.36) versus consensus of ($0.34).
• Orders totaled 3.0 million, below consensus of 3.06 million. Average order value was $238 versus consensus of $219.30. Ending active customers were 6.07 million versus consensus of 5.99 million and compared to 5.36 million a quarter ago. LTM net revenue per active customer was up +13.3% to $392, while repeat customers placed 55.4% of orders, and mobile orders were 38.6% of the total.
• Management provided 2Q16 guidance for revenues of $755–$785 million versus consensus of $744.6 million. Direct Retail revenue is expected to be in the range of $725–$750 million up 65%–70% year over year on comp basis versus consensus of $707.7 million. Quarter to date, comp growth has been in the high-70% range. Other Revenue is expected to be in the range of $30–$35 million versus consensus of $34.0 million.