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Wayfair is Losing Money — Market Mad House
Home furnishings portal Wayfair (NYSE: W) is one of online retail’s biggest success stories. Yet Wayfair loses money and suffers from shrinking revenues.
Wayfair is the seventh largest online retailer in the United States in November 2019, Statista estimates. Statista estimates Wayfair had net sales of $4.766 billion in 2018.
In fact, Wayfair’s online sales exceed those of retail legend Costco Wholesale (NASDAQ: COST).Statista estimates Costco’s 2018 online sales at $4.174 billion.
Wayfair is Growing Faster than Amazon
Moreover, Wayfair is growing at a dramatic rate. Stockrow estimates Wayfair’s revenues grew by 35.17% in the quarter ending on 30 September 2019. However, that growth rate was down from 41.56% in the previous quarter.
In contrast, Amazon’s (NASDAQ: AMZN) sales grew at a rate of 23.69% in the quarter ending on 30 September 2019. Thus, Wayfair is growing faster than Amazon.
Notably, Mr. Market paid $87.04 for Wayfair shares and $1,818.51 for Amazon shares on 27 November 2019. So Wayfair grows faster than Amazon but its stock is far cheaper. Plus, Mr. Market paid $300.76 for Costco Wholesale on 27 November 2019.
