Furnishings and homeware store Wayfair has reported a total net revenue of $2.7 billion in the first fiscal quarter of this year, a $1 million increase from the same period last year. 

The company’s net revenue in the US was up 1.6 per cent from last year to $2.4 billion this year. 

“Wayfair seems to think this number resulted in them capturing market share; we disagree, as the overall market for home furnishings in the US grew by 2.7 per cent over the same period, so Wayfair has underperformed and lost share,” said Neil Saunders, MD of GlobalData. 

“This quarter, net losses totalled $113 million – which is a significant improvement on last year’s $245 million loss.

“Part of this is thanks to cost-cutting, and part is thanks to reduced exposure to loss-making markets like Germany,” said Saunders. 

The company’s gross profit was reported at $837 million, while it recorded an adjusted EBITDA of $106 million. 

Wayfair’s cash and cash equivalents totalled $1.4 billion, with a total liquidity of $1.8 billion. 

“Our other concern is on tariffs,” said Saunders. “Although Wayfair has a marketplace model with a huge number of suppliers, many of the cheaper items are sourced from overseas. 

“These will now be subject to tariffs, and Wayfair will need to adjust its pricing accordingly, which may impact value perceptions and the willingness of consumers to buy.

“Unfortunately, the bottom line is that tariffs will be a huge hindrance to Wayfair,” he said.