Wayfair Stock At Record High As Sales Soar

  • General
  • February 24, 2019
  • 202
  • 4 minutes read
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image : Wayfair

Wayfair, the popular online retailer for home furnishings and décor items, has seen its stock climb to a record high since its 2014 IPO, following a surge of more than 40% in fourth quarter sales, beating several Wall Street estimates. However, net loss in 2018 more than doubled from the previous year.

Wayfair stock rose as much as 34% on Friday, now trading at $150 – as of writing. The company’s market cap stands at around $13.6 billion (as of writing). In October 2014, Wayfair debuted on the New York Stock Exchange (NYSE), raising $300 million at a stock market value of around $2.4 billion.

image : Wayfair

For 2018, Boston, Massachusetts based Wayfair recorded net revenue of $6.8 billion, up more than 40% from $4.72 billion a year earlier. But net loss recorded for the year was $504.1 million, a more than 100% jump from $244.6 million year earlier. This stems from the company’s aggressive spend to equip its logistics network and boost its international business. It also spent $774 million on advertising in 2018, a 41% jump from the amount spent a year earlier.

Founded in 2002, Wayfair has grown to to be the leading online retailer for home furnishings, home improvement, housewares, décor and more in the US. The company sells more than 14 million items via five main brands – Wayfair itself, Joss & Main  AllModern, Birch Lane and Perigold, employing 12,000 people currently, who serve its 15.2 million active customers.

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