AP Photo/Jenny Kane
- Wayfair jumped as much as 35% Tuesday morning after the ecommerce company announced that April sales were up 90% year-over-year as quarantined people buy home office furniture and cookware.
- Wayfair reported first quarter earnings that topped analyst estimates Tuesday morning.
- Despite the surge in revenue, Wayfair reported a net loss of $289.9 million for the first quarter.
- Visit Business Insider’s homepage for more stories.
Wayfair jumped as much as 35% Tuesday morning to $181.39 after revealing in its conference call that sales in the month of April were up 90% year-over-year.
The Boston-based ecommerce company reported first quarter results that topped analyst estimates as quarantined consumers bought more office furniture, kitchen appliances, and cookware products.
Here are the key numbers:
Revenue: $2.33 billion, versus the $2.31 billion estimate
GAAP earnings per share: -$3.04, versus the -$3.31 estimate
Active customers: 21.1 million, an increase of 28%
The company was initially trading 3% lower in Tuesday’s pre-market trading session following the results, as investors digested a widening net loss of $289.9 million despite a 20% increase in revenue.
It wasn’t until the company’s earnings conference call that the stock moved higher in a big way.
On the call, Wayfair revealed the sales surge for the month of April and gave further detail on its second quarter numbers.
“Quarter to date, our gross revenue growth year-over-year is trending at roughly 90%, translating to over $800 million added year over year … This momentum is widespread across almost all categories,” Wayfair Chief Financial Officer Michael Fleisher said.
Fleisher added, “While we do not know how long these trends will persist … we believe this period has certainly and permanently accelerated e-commerce adoption in our category.”
The move in Wayfair comes after Amazon reported a “major surge” in demand on in its first quarter earnings call on Thursday.
Today’s move in Wayfair seems to be having a positive impact on the stock prices of other ecommerce companies. Shares of Shopify and Chewy are up 4%, and Etsy has gained 10% in Tuesday’s trading session.
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