Wayfair Inc. posted broad declines in its business in Thursday’s second quarter results.
The Boston-based company announced that revenue in the second quarter declined 14.9% resulting in a net loss of $378 million at the end of the quarter on June 30.
DESPITE HIGH INFLATION, BACK-TO-SCHOOL SPENDING PROJECTED TO HIT $37B
Active customers reached 23.6 million, down 24%. And orders delivered in the second quarter fell 28% to 10 million. Repeat customers placed 7.8 million orders, down 26%.
Wayfair stock fell 2.44% to 62.87, today on the stock market.
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the home,” CEO, co-founder and co-chairman Niraj Shah wrote in the Wayfair earnings release. “We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period.”
The home retailer runs a variety of websites with decor and appliances offering a number of different styles and price points. In addition to Wayfair.com, the company also runs Birch Lane, Joss & Main and Perigold.
Wayfair’s problem may be one affecting many online stores. Overstock.com, Wayfair’s competitor, also faced falling revenue, with revenue falling 33.5% over a year.
E-commerce stores are struggling to reignite early pandemic shopping habits, when shoppers invested in new sofas, beds, and decor due to spending extended periods of time in their homes. Now, customers are dealing with 40-year high inflation.
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“Customers are being more deliberate about where their discretionary dollars are going as prices at the gas station and grocery store eat up a greater share of [their] wallet,” Shah wrote. “We have also seen many of those discretionary dollars flow away from goods to services, especially travel.”
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Over this year, Wayfair’s stock has plunged more than 60%. RH shares have lost 45% and Bed Bath & Beyond is down 57%. Williams-Sonoma, which also includes West Elm and Pottery Barn, has dropped 13%.
