BOSTON — Wayfair posted fourth quarter total net revenue of $3.3 billion, which is down 11.4% from the fourth quarter of 2020, along with gross profit of $881 million or 27.1% of total revenue for the quarter ending Dec. 31, 2021.
Net loss for the fourth quarter was $202 million, with diluted loss per share at $1.92. Active customers reached 27.3 million as of Dec. 31, 2021, a decrease of 12.5% year over year.
On the quarterly earnings call with investors, Shah said, “With regards to our active customer number, we expect to see normalization happen from peak of COVID. We did go down from 29 million to 27 million, but that is still up from 21 million before the pandemic.”
For the full year, the company reported total net revenue of $13.7 billion, down 3.1% year over year. The company’s gross profit was $3.9 billion, or 28.4% of total net revenue.
Net loss for the fiscal year was $131 million, with diluted loss per share for the full year was $1.26, compared with a gain of $1.86 per share last year.
“As we celebrate Wayfair’s 20th anniversary and the company’s rapid growth to a $14 billion household brand, we are proud of our accomplishments and even more excited about what’s ahead,” said Niraj Shah, CEO, co-founder and co-chairman. “While consumer behavior has changed repeatedly throughout the pandemic, the primary elements for success in our category have not; the home remains top of mind and secular trends favor a long and durable shift to e-commerce. “
Shah added that over the past two years, the company has grown its topline by more than 50% without increasing its headcount, which he said demonstrates the scalability and attractive structural economics of the Wayfair business.
“Today, we are continuing our high ROI initiatives across all dimensions — including assortment, discovery, technology and logistics — to set ourselves up for continued strong growth,” he added. “As we do, we are ready to navigate the macro environment with a strong balance sheet and a talented team.”
Shah also told investors the company has clear plans in place to drive expansion over the coming year and will continue hiring at a more steady pace.
“The macro forecast remains dynamic and extremely difficult to read,” Shah said on the quarterly earnings call. “Customers are seeing inflation affect their lives and pressure their wallets. They also have more choices as pandemic pressures ease. But we believe there is a pendulum to consumer behavior. Although interest in the home has died off some, it remains healthy. We expect the pendulum of behavior to reach its equilibrium point soon.”
The company also plans to add two new CastleGate fulfillment centers this year. The one near Baltimore, Md. has recently opened and the other one will be located outside of Chicago.