Wayfair Earnings Calls Are Exhaustive / Detailed Presentations

eCommerce
Written By Rick Watson

I listened to the Wayfair Q1 2020 earnings call, and learned quite a bit. A few tidbits to pass along:

  • While gross margins are improving somewhat, adjusted EBITDA margins look flat sequentially in Q1 to FY 2019. International is the worst -23%.

  • While repeat customer purchase frequency is increasing (70% now) but I couldn't help but notice the first-time buyer numbers are slightly off.

  • House brands now represent 75% of all sales. I hadn't heard this number in the past. Feels like it has room to run more. Many home items are not brand-forward. If the couch is comfortable, who cares what it says on the label under the seat cushion?

  • Wayfair is one of the few companies which treat their earnings call as a (exhaustive) detailed presentation. Seems they try to harness some "innovation magic" from investors and perhaps sideline profitability challenges over the years and get closer to tech company valuations. Where else can you learn about the supply chain of a coffee table? Odd.

  • Wayfair laid off 550 employees in February as part of profitability/consolidation moves. That's about 3% of their employee base, not insignificant.

  • Wayfair believes this eCommerce acceleration is a permanent category shift. Doesn't hurt that Bed Bath and Beyond is shut.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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