US Markets
Thursday, May 2nd, 2024 4:03 pm EDT
Key Points
- Wayfair’s sales decreased in the first quarter, but the company managed to reduce its losses significantly after cutting 13% of its workforce at the beginning of the year.
- Despite the sales decline, Wayfair exceeded Wall Street’s expectations in terms of both adjusted loss per share and revenue, with active customer growth of nearly 3% compared to the previous year.
- Wayfair’s reported net loss for the quarter was $248 million, with sales falling over 1%, particularly in the international segment. However, CEO Niraj Shah expressed optimism, highlighting positive trends in active customer growth and supplier introductions of new products.
In the first quarter, Wayfair experienced a decline in sales but managed to reduce its losses following a significant workforce reduction at the beginning of the year. Despite the decrease in revenue, the online furniture retailer surpassed Wall Street’s expectations both in terms of adjusted loss per share and revenue. Active customer count also saw a nearly 3% increase compared to the previous year. Notably, Wayfair shares surged over 10% in morning trading after the announcement. The company reported a net loss of $248 million for the quarter, or $2.06 per share, a significant improvement from the $355 million loss, or $3.22 per share, in the same period last year. Sales dropped slightly to $2.73 billion, with the international segment experiencing the steepest decline at nearly 6%. Despite these challenges, CEO Niraj Shah expressed optimism, noting that active customer growth was positive and accelerating, with suppliers introducing new products into their catalogs. Wayfair implemented layoffs, including cutting 13% of its global workforce, in response to fluctuations in sales during and after the pandemic. This restructuring, the third since summer 2022, aimed to save the company approximately $280 million. Although profitability remains a goal, Wayfair reduced its losses by $107 million in the first quarter following the latest round of job cuts. Additionally, active customer count grew by 2.8%, surpassing analyst expectations. Average order values slightly exceeded projections, indicating resilience in consumer spending despite fluctuations in unit prices.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/02/wayfair-w-earnings-q1-2024.html
