Wayfair (NYSE: W) reported positive fourth quarter earnings Thursday, though sales failed to meet analysts’ expectations. Despite the retailer attracting more buyers throughout the quarter, many leaned towards purchasing affordable products, therefore lowering the average order values.
CEO Niraj Shah said that the company is poised to gain share. “As we look beyond the pandemic period, we are confident that our long-term orientation and years of investments should translate to compounding share gains and increasing profitability in a rapidly growing e-commerce market,” said Shah.
Amid the pandemic, the company has taken advantage of remote work and education as customers improved their home office situations. However, shares plummeted 7% during premarket trading, as investors remain cautious that the company may be losing momentum.
Wayfair reported earnings of USD1.24 per share, compared to the expected USD0.86 per share. Revenue amounted to USD3.67 Billion, below analysts anticipated USD3.76 Billion.
“Like virtually all categories, shopping for the home is quickly and structurally moving online,” Shah said during a conference call with analysts. “We are, and should, continue to take outsized share. … The market is vast and underserved.”
The company highlighted a net income of USD23.8 Million or USD0.23 a share, compared to the previous year’s loss of USD330.2 Million or USD3.54 per share. Furthermore, Wayfair’s active customer increased 53.7% to 31.2 million.
Wayfair has risen over 240% within the last year as of Wednesday and its market cap is currently USD25.7 Billion.