Wayfair stock falls as Q2 results weighed down by 'continued macro headwinds'

By James Rogers

"Customers remain cautious in their spending on the home," says Wayfair CEO Niraj Shah

Wayfair Inc. shares are down 5.1% premarket after the online furniture retailer reported lower-than-expected second-quarter results amid continued macro headwinds.

The company reported a net loss of $42 million, or a loss of 34 cents a share, after a loss of $46 million, or a loss of 41 cents a share, in the prior year's quarter. On an adjusted basis, Wayfair (W) reported earnings of 47 cents a share. Analysts surveyed by FactSet were looking for earnings of 48 cents a share.

Wayfair's second-quarter revenue was $3.12 billion, down from $3.17 billion in the prior year's quarter. Analysts surveyed by FactSet were looking for revenue of $3.18 billion.

Related: The furniture industry's recovery relies on customers getting used to paying more

"Q2 was a dynamic quarter that resulted in another period of share gain, amid continued macro headwinds that are pressuring the ways customers are shopping the category," said Wayfair CEO Niraj Shah, in a statement.

"Customers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis."

The company's non-GAAP adjusted EBITDA was $163 million and non-GAAP free cash flow was $183 million. "Even with the challenging macro, this was our best quarter of Adjusted EBITDA and Free Cash Flow generation in three years, clear evidence of our strict operating discipline," said Shah, in the statement.

Wayfair's active customers as of June 30, totaled 22 million, a year-over-year increase of 0.9%.

Related: Wayfair's stock jumps after retailer narrows loss, says quarter ended 'on an upswing'

Wayfair shares are down 11.8% in 2024, compared with the S&P 500 index's SPX gain of 15.8%.

-James Rogers

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08-01-24 0812ET

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