Wayfair Inc (NYSE: W), an online store specializing in furniture and home accessories, gets almost three-quarters of its sales from repeat clients. This outstanding performance may serve as a foundation for the long-term success of the company.
Data from Wayfair shows that 71 % of orders come from people who have previously purchased products on the platform. This indicates reasonable customer satisfaction and the ability of the retailer to meet customer expectations. By achieving high customer loyalty, Wayfair will be able to lower advertising costs and ultimately increase profits.
With 33 million active members, Wayfair maintains a massive user base. The second (current) quarter of this year saw slightly lower growth rates than the first quarter. Stationery stores were closed in response to the COVID-19 pandemic in the second quarter of 2020, so the comparison is not entirely correct.
Wayfair Inc (NYSE: W) sales rose by almost 50 % year-on-year to $ 3.5 billion in the first quarter of 2021. Customers from other stationery and online stores helped the network expand its market share. It played a significant role in streamlining the buying process by setting up an in-house delivery system.
According to Wayfair, its gross profit margin in the first quarter was 29 % of sales, up 4 % from last year. The reason for this was a rise in prices and increased delivery efficiency, among other factors. While management expected gross margins to eventually reach 25 % to 27 % of sales as the business progressed, Wayfair now suggests that the figure could rise to 30%.
The company expects second-quarter revenues to be greater than $3.5 billion, with adjusted earnings matching or exceeding those of the previous quarter.
Wayfair Inc. (W) shares increased 0.25% to trade at $310.65 in the current market at the last check. During the previous session, W sold at $309.89 per share. A volume of 1.06 million shares was logged, below the average daily volume of 1.47 million shares during the past 50 days. In the past week, W’s shares increased by 3.55%, rising 90.00% during the past year. W has gained 16.37% over the past three months and 32.38% over the past six months. According to the company, its market value is $32.29 billion, while its outstanding shares amounted to 102.84 million.