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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Tech

Wayfair posts wider-than-expected fourth-quarter loss despite booming sales

Revenues in the final three months of 2017 grew almost 40% year-over-year, but the retailer’s losses still widened

Wayfair Inc (NYSE:W) dipped in pre-market trading after the online home décor retailer reported a wider-than-expected fourth-quarter loss.

The Boston-based company - which sells everything from rugs to refrigerators - reported a loss of US$72.8mln, or 83 US cents per share, in the three months through to December 31, compared with a loss of US$44.0mln, or 51 US cents, for the year-ago period.

READ: Wayfair shares plunge over 19% as loss widens

Adjusted for stock option expenses and other one-time items, fourth-quarter losses came to 58 US cents per share.

That was on revenues of US$1.44bn - up from US$984.6mln in the fourth quarter of 2016 and slightly ahead of expectations of US$1.36bn.

But it was the adjusted loss which disappointed, with analysts having pencilled in a loss of 53 US cents.

The number of active customers rose by a third to 11mln and the average order value jumped to US$229 in the quarter - up from US$203 this time last year.

For the year, Wayfair saw losses widen to US$244.6mln, or US$2.81 per share. Revenue was reported as US$4.72bn - a year-on-year rise of almost 40%.

“We are pleased to report another year of incredible growth with total net revenue up US$1.3bn to US$4.7bn in 2017, as well as a record fourth quarter with the largest year-over-year increase in Direct Retail dollars in company history," said chief executive and co-founder Niraj Shah.

The stock tumbled 14.6% to US$81.65 shortly before the opening bell in New York.

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