Wayfair CFO Kate Gulliver Talks Earnings, Customer Demand, Expansion
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On Apple, Spotify, YouTube or wherever you get your podcasts. Well, shares of Wayfair were keeping a watch on that one, dropping a lot, down about 16% at their lows on earnings. A four-month low intraday as active customers during the fourth quarter came in slightly below street expectations. Now, the street weighing in on the results. William Blair saying that the 6.9% growth in net revenue likely fell short of buy-side expectations. But you had some peers, RH, Our House, and also Williams-Sonoma, under some pressure in the trade. So investors looking at the group overall. Let's get a little bit more on the outlook. We want to head to Boston.
We got Kate Gulliver back with us, CFO of Wayfair. Kate, good to have you on the program. Tell us a little bit about the quarter because interestingly enough, Jeffries says this is attributable to colder weather to start the year. Anything about the guidance regarding is about colder weather?
Yeah, well, maybe let's step back and sort of speak to the quarter we just reported, then I'm happy to shift to guidance. You know, we feel really great about the quarter we just reported. I think it highlighted and capped off a year of incredible momentum for us. We opened up the year flat. We, you know, exited the year at 7% revenue growth, 8%, you know, managing for the exit of Germany. and we flowed through to improved EBITDA. EBITDA grew year-over-year about 60%, right? So we're seeing both ongoing market share gains and improved profitability. And that story continues with our guide into Q1. We feel really good about the guide, the mid-single digits revenue growth and improved adjusted EBITDA throughout the quarter.
So when we look at it, we feel that we produced pretty strong results.
Yeah, I mean, you look at the quarter, I mean, adjusted EPS better than what the street was expecting. Adjusted EBITDA, as you said, coming in stronger. Net revenue up about 7% year over year. Gross margin coming in better than the street estimate. There were a lot to do. So maybe we talk a little bit about, you know, I am curious, you know, you guys have dealt with the call and so on and so forth. What are you hearing from the investment community that they're not just so comfortable with, Kate?
Yeah, you know, actually, you know, as we talk to investors, I think, again, they're pleased with the momentum that we see here. You know, obviously, we're in a category that has been under pressure, right? So the category itself, we think, was down low single digits in the fourth quarter. You know, to your earlier question sort of around weather in the first quarter, we do think the category has been impacted in the first quarter of this year. you know likely you know down low single digits again maybe slightly worse even than q4 so there's certainly some complexity in the overall category here you know what can we focus on we can focus on what we can control and our share gain continues to be a real source of strength you see us outstripping the category by several points right and that's continued you know q3 q4 and then again into the guide in q1
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