W.W. Grainger, Inc. (NYSE:GWW) Q1 2016 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 05:27 pm ET


W.W. Grainger, Inc. (NYSE:GWW) Q1 2016 Earnings Conference Call - Final Transcript


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Good morning. My name is Melisa and I will be your conference operator today. At this time, I would like to welcome everyone to the Wayfair First Quarter 2016 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. Ms. Julia Donnelly, Head of Investor Relations at Wayfair. You may begin your conference.

Julia Donnelly

Good morning and thank you for joining us. Today, we will review our first quarter 2016 results. With me are Niraj Shah, Co-Founder, Chief Executive Officer and Co-Chairman; Steven Conine, Co-Founder and Co-Chairman; and Michael Fleisher, Chief Financial Officer. We will all be available for Q&A following today's prepared remarks.

I would like to remind you that we will be making forward-looking statements during this call regarding future events and financial performance, including guidance for the second quarter of 2016. These statements are only predictions based on assumptions that are believed to be reasonable at the time they are made and are subject to significant risks and uncertainties.

You should not rely on these forward-looking statements as representing our views in the future. Except as required by law, we undertake no obligation to publicly update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed on this call. For a discussion of factors that could affect our future performance, results and business, please refer to our quarterly report or Form 10-Q, which we expect to file in the near future and other reports we have on file from time to time with the SEC.

Please note that during the course of this conference call, we may discuss certain non-GAAP financial measures as we review the company's performance. Please refer to the Investor Relations section of our website to obtain a copy of our earnings release which contains descriptions of our non-GAAP financial measures and reconciliations of non-GAAP measures to the nearest comparable GAAP measures. This call is being recorded and a webcast is available for replay on our IR website.

Now, I would like to turn the call over to Niraj.

Niraj Shah

Thanks, Julia, and thank you all for joining this morning. We're excited to update you on another strong quarter of performance. We generated $747 million in net revenue in Q1, up 76%. Our Direct Retail business, which is now 95% of the total increased by $342 million to $712 million, representing 93% growth. Our total active customer count also reached 6.1 million customers.

Though the fourth quarter of 2015 was exceptionally strong and included the benefit of holiday sales, we're extremely pleased that during the first quarter, we were able to increase Direct revenue by an incremental $26 million. The growth in our Direct Retail business is led by Wayfair.com in the U.S., where we believe we are taking an increasing share of the dollars moving online in our categories.

As you can see in our updated slide posted on