Online home furnishings retailer Wayfair has confirmed it expects to meet its previously issued guidance of 15% to 17% net sales growth during its first quarter of 2020.
Wayfair added it also expects Adjusted EBITDA Margin to be in a negative 7.3% to 7.8% range, while stating that it continues to see ‘strong demand’ across its home goods categories in both its US and International markets.
After entering the month of March with gross revenue growing at slightly below 20% year-over-year, consistent with January and February growth rates, Wayfair saw this rate of growth more than double towards the end of March. This run-rate has continued into early April.
Commenting on its trading update, Niraj Shah, CEO, co-founder and co-chairman, Wayfair, said: “We are closely monitoring the current market as we all respond to the threat of COVID-19. Wayfair’s e-commerce model is uniquely suited to serving customers’ very real needs at this challenging time, and we are committed to doing so while taking all necessary steps and precautions to ensure the safety of our customers, employees, and communities.
“We are incredibly proud of our team of over 16,000 people and the way they have mobilized to both take care of our customers and to help our local communities. We are encouraged by our increasing sales momentum, yet remain highly focused on our plan to rapidly reach profitability and positive free cash flow. The additional capital we are raising, though not strictly necessary, should only enhance our ability to successfully navigate through any market backdrop.”