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1) Great quarter from $W. Repeat order %, AOVs and frequency all growing significantly YoY with nice gross margin leverage – all of this despite the fact that mix is shifting to international which is depressing all of the above metrics per mgmt. commentary.
2) All of the above leads to the cohort slide, which is particularly impressive. 
3) Continue to find it strange that various commentators artificially inflate CAC by attributing all advertising spend to new customer acquisition despite the fact that repeat orders are more than 2/3 of all orders.
4) The fact that “house brands grew to approximately 74% of $W net revenue, up from 57% for 2017 as a whole” is impressive and an emerging competitive advantage.
5) $W experimentation with stores is interesting. All retailers will be omnichannel eventually. Primarily ecommerce retailers likely end up with ~100ish stores given that an offline presence improves marketing spend efficiency.
6) 35% incremental share of online home goods spend and 21% incremental share of all home goods spend are fantastic and both numbers are growing.
7) If $W can maintain their current 35% incremental share (note - it is actually increasing) and online home good spending grows to their projected $147b in 2028 (inline with current CE online penetration) that solves for $50bish in 2028 US revenue.
8) International revenue likely $30b in 2028. $80bish in revenue, 5%ish FCF margin so $4bish in 2028 free cash flow. Upside possible from higher incremental share and inevitable expansion into new categories.
9) Finally, the CEO of another large ecommerce company who previously worked at $AMZN told me in the summer of 2018 that he was in the room with Wilke, Bezos and the new home furnishing team after the previous team had been fired due to $W’s success.
10) Wilke and Bezos allegedly told the new team that they had to “lose” $1b competing with $W over the next 18 months. Despite this, every single metric continues to improve for $W.
11) And whether or not one believes the story, I am certain that $AMZN has been much more focused on $W since it went public with zero discernable effect.
12) Affirms the conclusion from my thread/post on VC revealed opinion on competitive advantage (medium.com/@gavin_baker/v…) and Bruce Greenwald’s “Competition Demystified" that scale is the most durable competitive advantage. $W is likely 1.5xish $AMZN’s size in home goods.
