As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the online retail industry, including Wayfair (NYSE:W) and its peers.
Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online.
The 5 online retail stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 1.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.3% since the latest earnings results.
Weakest Q4: Wayfair (NYSE:W)
Founded in 2002 by Niraj Shah, Wayfair (NYSE:W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $3.12 billion, flat year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA estimates.
"The fourth quarter was a strong conclusion to the year across multiple fronts. From a topline performance perspective, we ended 2024 on a high note - with net revenue showing positive year-over-year growth. These results enabled us to drive nearly $100 million dollars of adjusted EBITDA in the quarter, and deliver on our goal of approximately 50% year-over-year dollar growth for 2024," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
Wayfair delivered the slowest revenue growth of the whole group. The company reported 21.4 million active buyers, down 4.5% year on year. Unsurprisingly, the stock is down 21.2% since reporting and currently trades at $36.50.
Read our full report on Wayfair here, it’s free.
Best Q4: Carvana (NYSE:CVNA)
Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Carvana reported revenues of $3.55 billion, up 46.3% year on year, outperforming analysts’ expectations by 6.2%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and impressive growth in its units.
Carvana scored the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 114,379 units sold, up 50.3% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 22.2% since reporting. It currently trades at $219.31.
Is now the time to buy Carvana? Access our full analysis of the earnings results here, it’s free.
Amazon (NASDAQ:AMZN)
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services.
Amazon reported revenues of $187.8 billion, up 10.5% year on year, in line with analysts’ expectations. Still, it was a satisfactory quarter as it posted a solid beat of analysts’ EPS estimates.
As expected, the stock is down 14% since the results and currently trades at $205.30.
Read our full analysis of Amazon’s results here.
Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $293.7 million, up 13.9% year on year. This print topped analysts’ expectations by 3.8%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and number of active customers in line with analysts’ estimates.
The company reported 2.67 million active buyers, up 4.9% year on year. The stock is down 12.8% since reporting and currently trades at $24.70.
Read our full, actionable report on Revolve here, it’s free.
Coupang (NYSE:CPNG)
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Coupang reported revenues of $7.97 billion, up 21.4% year on year. This result lagged analysts' expectations by 1.3%. Overall, it was a mixed quarter for the company.
Coupang had the weakest performance against analyst estimates among its peers. The company reported 23.14 million active buyers, up 10.2% year on year. The stock is down 1.3% since reporting and currently trades at $23.82.
Read our full, actionable report on Coupang here, it’s free.
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