Wayfair CEO likens home goods slowdown to 2008 financial crisis
Online home goods company Wayfair saw sales decline in its fiscal second quarter as its CEO called the current slowdown in the home goods category “unprecedented” — and likened it to the 2008 financial crisis.
Online home goods company Wayfair saw sales decline in its fiscal second quarter as its CEO called the current slowdown in the home goods category “unprecedented” — and likened it to the 2008 financial crisis.
“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,” Wayfair CEO Niraj Shah said in a news release. “Customers remain cautious in their spending on the home.”
The e-tailer fell short of Wall Street’s expectations on both the top and bottom lines. Shares opened about 8% lower before paring some losses.
Here’s how Wayfair did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
The company reported a loss of $42 million, or 34 cents per share, in the three-month period that ended June 30. That’s slightly better than the loss of $46 million, or 41 cents per share, that it posted during the same quarter a year earlier.
Rating: 5