Core Viewpoint - Wayfair Inc. has reported disappointing second-quarter results, with adjusted EPS and sales falling short of expectations due to cautious consumer spending and a challenging market environment [1][2]. Financial Performance - Adjusted EBITDA for FY24 is estimated at $505 million, down from previous estimates of $590 million, and for FY25, it is projected at $635 million, reduced from $727 million [2][3]. - Revenue for FY24 is now forecasted at $11.8 billion, down from $12.3 billion, and for FY25, the revenue estimates have been adjusted to reflect a decrease of 2% and an increase of 3% respectively [1][3][4]. - The third-quarter revenue estimate has been revised to $2.9 billion from $3.1 billion [2]. Analyst Ratings and Price Targets - RBC Capital Markets analyst Steven Shemesh reiterated a Sector Perform rating, lowering the price target to $53 from $65 [1]. - Goldman Sachs analyst Eric Sheridan maintained a Neutral rating, reducing the price target from $67 to $54 [2]. - Piper Sandler analyst Peter J. Keith reiterated an Overweight rating, lowering the price forecast to $67 from $91 [3]. - Wedbush analyst Seth Basham reiterated an Outperform rating, lowering the price forecast to $60 from $70 [4]. - KeyBanc Capital Markets analyst Bradley B. Thomas reiterated a Sector Weight rating, lowering FY24 revenue estimate to $11.841 billion from $12.067 billion [5]. - Truist Securities analyst Youssef Squali reiterated a Buy rating, lowering the price forecast to $60 from $70 [5]. Market Dynamics - Analysts note that Wayfair is focusing on price investments to maintain market share, which may impact short-term margins but is expected to yield long-term benefits as industry trends improve [3][4]. - The company is balancing costs and growth effectively, with a strategy that involves trading some margin for volume and market share [4][5]. - Despite the current challenges, analysts see potential for strong sales growth and margin expansion in 2025 and beyond as the macroeconomic environment improves [3][6].

Amid the turbulence in the consumer and retail sector, Wayfair Inc. W has been making headlines for its recent dip in stock performance.However, JPMorgan analyst Christopher Horvers is urging investors not to panic but instead “Buy the Dip,” as he emphasizes that the issues facing Wayfair are macroeconomic rather than company-specific.Horvers maintains an Overweight rating on the stock, albeit with a revised price target of $63 by December 2024, down from the previous $80. Here’s why he believes Wayfair’s l ...

Group 1 - Wayfair's CEO, Niraj Shah, indicated that customers are cautious in their spending on home furnishings, reflecting a significant decline similar to the Great Recession of 2008 [1][2] - The company's third-quarter revenue guidance projects a decline in the low single digits, which is lower than analysts' expectations of a roughly 1% decline [1][2] - In the second quarter, Wayfair reported revenue of $3.1 billion, a decrease of 1.7% year-over-year, and a loss of $42 million, or 34 cents per share, both of which were in line with expectations [2] Group 2 - Following the announcement of the second-quarter results, Wayfair's shares dropped 8% in a single session and are down nearly 20% year-to-date [2] - The current consumer sentiment indicates increasing financial stress among American households, with reports suggesting that consumers are "increasingly tapped out" [2]

```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Wayfair Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' deficit, and cash flows, along with detailed notes explaining significant accounting policies, supplemental disclosures, debt, equity, and segment information for the periods ended June 30, 2024 and 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202024%20and%20December%2031%2C%202023) | Metric | Dec 31, 2023 (in millions) | Jun 30, 2024 (in millions) | | :----------------------------- | :------------------------- | :------------------------- | | Total Assets | $3,474 | $3,436 | | Total Liabilities | $6,181 | $6,196 | | Total Stockholders' Deficit | $(2,707) | $(2,760) | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net revenue | $3,117 | $3,171 | $5,846 | $5,945 | | Gross profit | $941 | $985 | $1,760 | $1,806 | | Loss from operations | $(35) | $(142) | $(270) | $(489) | | Net loss | $(42) | $(46) | $(290) | $(401) | | Basic Loss per share | $(0.34) | $(0.41) | $(2.39) | $(3.60) | | Diluted Loss per share | $(0.34) | $(0.41) | $(2.39) | $(3.60) | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net loss | $(42) | $(46) | $(290) | $(401) | | Foreign currency translation adjustments | $1 | $(1) | $1 | $1 | | Net unrealized gain on available-for-sale investments | $0 | $0 | $0 | $1 | | Comprehensive loss | $(41) | $(47) | $(289) | $(399) | [Condensed Consolidated Statements of Stockholders' Deficit](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | Dec 31, 2023 | Jun 30, 2024 | | :------------------- | :----------- | :----------- | | Additional paid-in capital | $1,316 | $1,552 | | Accumulated deficit | $(4,018) | $(4,308) | | Total stockholders' deficit | $(2,707) | $(2,760) | - Equity-based compensation contributed **$233 million** to additional paid-in capital for the six months ended June 30, 2024[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $106 | $70 | | Net cash (used in) provided by investing activities | $(127) | $49 | | Net cash provided by financing activities | $3 | $77 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(18) | $199 | | Cash, cash equivalents and restricted cash, End of period | $1,308 | $1,249 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) - Wayfair is evaluating the impact of ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes) on its financial statements[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 2. Supplemental Financial Statement Disclosures](index=10&type=section&id=2.%20Supplemental%20Financial%20Statement%20Disclosures) | Metric (in millions) | Dec 31, 2023 | Jun 30, 2024 | | :------------------- | :----------- | :----------- | | Accounts receivable, net | $140 | $161 | | Contract liabilities | $204 | $232 | - Wayfair incurred **$79 million** in restructuring charges for the six months ended June 30, 2024, primarily due to a workforce reduction of approximately **1,650 employees** in January 2024[33](index=33&type=chunk) [Note 3. Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements](index=11&type=section&id=3.%20Cash%2C%20Cash%20Equivalents%20and%20Restricted%20Cash%2C%20Investments%20and%20Fair%20Value%20Measurements) | Metric (in millions) | Dec 31, 2023 | Jun 30, 2024 | | :------------------- | :----------- | :----------- | | Cash and cash equivalents | $1,322 | $1,304 | | Short-term investments | $29 | $39 | | Total liquidity | $1,351 | $1,343 | - Interest income for the six months ended June 30, 2024, was **$26 million**, up from **$18 million** in the prior year[34](index=34&type=chunk) [Note 4. Debt and Other Financing](index=13&type=section&id=4.%20Debt%20and%20Other%20Financing) | Debt Instrument | Principal Amount (Jun 30, 2024, in millions) | Net Carrying Amount (Jun 30, 2024, in millions) | | :-------------- | :------------------------------------------- | :---------------------------------------------- | | 2024 Notes | $117 | $117 | | 2025 Notes | $754 | $752 | | 2026 Notes | $949 | $945 | | 2027 Notes | $690 | $682 | | 2028 Notes | $690 | $680 | | 2025 Accreting Notes | $38 | $38 | | Total Debt | | $3,214 | - Wayfair has a **$600 million revolving credit facility**, with **$69 million in outstanding letters of credit** and no revolving loans outstanding as of June 30, 2024[39](index=39&type=chunk) - The conditional conversion features for the 2024, 2025, 2026, 2027, and 2028 Notes were not triggered during Q2 2024, meaning they are not convertible in Q3 2024 based on sales price conditions[44](index=44&type=chunk) [Note 5. Commitments and Contingencies](index=16&type=section&id=5.%20Commitments%20and%20Contingencies) - Wayfair does not believe current legal matters will have a material adverse effect on its financial condition[58](index=58&type=chunk) - The Canada Border Services Agency (CBSA) review has an estimated potential liability of approximately **$29 million**, including duties and interest, for which Wayfair is appealing[59](index=59&type=chunk)[60](index=60&type=chunk) [Note 6. Stockholders' Deficit](index=17&type=section&id=6.%20Stockholders'%20Deficit) - **56,347,119 shares** of Class B common stock have been converted to Class A common stock since the IPO through June 30, 2024[62](index=62&type=chunk) - No shares were repurchased under stock repurchase programs during the three and six months ended June 30, 2024 and 2023[63](index=63&type=chunk) [Note 7. Equity-Based Compensation](index=17&type=section&id=7.%20Equity-Based%20Compensation) | Metric (in millions) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | | Total equity-based compensation expense | $214 | $308 | - As of June 30, 2024, **13,103,651 shares** of Class A common stock remained available for future grants under the 2023 Incentive Award Plan[65](index=65&type=chunk) [Note 8. Income Taxes](index=18&type=section&id=8.%20Income%20Taxes) - The provision for income taxes, net, for the three and six months ended June 30, 2024, was **$2 million** and **$5 million**, respectively, primarily due to tax benefits from losses and state/foreign taxes[70](index=70&type=chunk) - The OECD Pillar 2 global minimum tax rules did not have a material impact on Wayfair's income tax provision for the three and six months ended June 30, 2024[71](index=71&type=chunk) [Note 9. Loss per Share](index=18&type=section&id=9.%20Loss%20per%20Share) | Metric | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic Loss per share | $(0.34) | $(0.41) | $(2.39) | $(3.60) | | Diluted Loss per share | $(0.34) | $(0.41) | $(2.39) | $(3.60) | - Potential common shares from anti-dilutive securities, including unvested restricted stock units and shares related to convertible debt instruments, totaled **39 million** for the three and six months ended June 30, 2024[76](index=76&type=chunk) [Note 10. Segment and Geographic Information](index=19&type=section&id=10.%20Segment%20and%20Geographic%20Information) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | U.S. net revenue | $2,730 | $2,785 | $5,121 | $5,200 | | International net revenue | $387 | $386 | $725 | $745 | | Total net revenue | $3,117 | $3,171 | $5,846 | $5,945 | | U.S. Adjusted EBITDA | $199 | $161 | $320 | $190 | | International Adjusted EBITDA | $(36) | $(33) | $(82) | $(76) | - International Net Revenue Constant Currency Growth was **1.3%** for the three months ended June 30, 2024, but **decreased by 3.0%** for the six months ended June 30, 2024[101](index=101&type=chunk)[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Wayfair's financial condition and results of operations, highlighting key performance drivers, macroeconomic impacts, and a detailed comparison of financial results for the three and six months ended June 30, 2024 and 2023, also discussing liquidity, capital resources, and non-GAAP financial measures [Overview](index=22&type=section&id=Overview) - Net revenue **decreased by 1.7%** for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to lower order volume and category challenges[92](index=92&type=chunk)[100](index=100&type=chunk) - As of June 30, 2024, Wayfair had **22 million active customers**, and **81.7%** of orders came from repeat buyers during the three months ended June 30, 2024[92](index=92&type=chunk)[99](index=99&type=chunk) - Wayfair is closely monitoring macroeconomic impacts, including geopolitical events, rising interest rates, and inflation, which may negatively affect global economic activity and consumer behavior[93](index=93&type=chunk) [Key Financial Statement and Operating Metrics](index=24&type=section&id=Key%20Financial%20Statement%20and%20Operating%20Metrics) | Metric | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :----------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net revenue (in millions) | $3,117 | $3,171 | $5,846 | $5,945 | | Net loss (in millions) | $(42) | $(46) | $(290) | $(401) | | Active customers (in millions) | 22 | 22 | 22 | 22 | | LTM net revenue per active customer | $540 | $545 | $540 | $545 | | Orders delivered (in millions) | 10 | 10 | 20 | 20 | | Average order value | $313 | $307 | $299 | $297 | | Adjusted EBITDA (in millions) | $163 | $128 | $238 | $114 | | Free Cash Flow (in millions) | $183 | $128 | $(10) | $(106) | | Adjusted Diluted Earnings (Loss) per Share | $0.47 | $0.21 | $0.16 | $(0.90) | [Results of Consolidated Operations](index=25&type=section&id=Results%20of%20Consolidated%20Operations) [Comparison of the three months ended June 30, 2024 and 2023](index=25&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | % Change | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Net revenue | $3,117 | $3,171 | (1.7)% | | Cost of goods sold | $2,176 | $2,186 | (0.5)% | | Gross profit | $941 | $985 | (4.5)% | | Total operating expenses | $976 | $1,127 | (13.4)% | | Loss from operations | $(35) | $(142) | (75.4)% | | Net loss | $(42) | $(46) | (8.7)% | - Equity-based compensation and related taxes **decreased by $70 million (42.4%)** for the three months ended June 30, 2024, compared to the same period in 2023[107](index=107&type=chunk) - Advertising expenses **increased by $13 million (3.7%)** for the three months ended June 30, 2024, due to advertising holdbacks in Q2 2023 and efforts to maintain efficiency targets[111](index=111&type=chunk) [Comparison of the six months ended June 30, 2024 and 2023](index=28&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202024%20and%202023) | Metric (in millions) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | % Change | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Net revenue | $5,846 | $5,945 | (1.7)% | | Cost of goods sold | $4,086 | $4,139 | (1.3)% | | Gross profit | $1,760 | $1,806 | (2.5)% | | Total operating expenses | $2,030 | $2,295 | (11.5)% | | Loss from operations | $(270) | $(489) | (44.8)% | | Net loss | $(290) | $(401) | (27.6)% | - Equity-based compensation and related taxes **decreased by $94 million (30.0%)** for the six months ended June 30, 2024, compared to the same period in 2023[132](index=132&type=chunk) - Restructuring charges **increased by $14 million (21.5%)** to **$79 million** for the six months ended June 30, 2024, due to the January 2024 workforce reductions[142](index=142&type=chunk)[143](index=143&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) | Metric (in millions) | Dec 31, 2023 | Jun 30, 2024 | | :------------------- | :----------- | :----------- | | Cash and cash equivalents | $1,322 | $1,304 | | Short-term investments | $29 | $39 | | Total liquidity | $1,351 | $1,343 | - Wayfair has a **$600 million revolving credit facility**, with **$69 million in outstanding letters of credit** and no revolving loans outstanding as of June 30, 2024[152](index=152&type=chunk) - As of June 30, 2024, Wayfair had **$1.1 billion remaining under its authorized share repurchase programs**[201](index=201&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Adjusted EBITDA | $163 | $128 | $238 | $114 | | Free Cash Flow | $183 | $128 | $(10) | $(106) | | Adjusted Diluted Earnings (Loss) per Share | $0.47 | $0.21 | $0.16 | $(0.90) | - Adjusted EBITDA excludes depreciation and amortization, equity-based compensation, interest, other income/expense, income taxes, non-recurring items, and other non-operating performance items[170](index=170&type=chunk) - Free Cash Flow is calculated as net cash provided by or used in operating activities less Capital Expenditures[177](index=177&type=chunk) [Critical Accounting Policies and Estimates](index=38&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - No material changes to critical accounting policies and estimates since December 31, 2023[191](index=191&type=chunk) [Recent Accounting Pronouncements](index=38&type=section&id=Recent%20Accounting%20Pronouncements) - Recent accounting pronouncements are detailed in Note 1, Summary of Significant Accounting Policies[192](index=192&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no significant changes in Wayfair's exposures to market risk since December 31, 2023 - No significant changes in market risk exposures since December 31, 2023[193](index=193&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Wayfair's management concluded that its disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2024, and reported no material changes in internal control over financial reporting during the period - Disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2024[194](index=194&type=chunk) - No material changes in internal control over financial reporting were identified during the period[195](index=195&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Wayfair is involved in routine legal matters but does not anticipate any material adverse effects on its financial condition or operations from their outcomes - Wayfair does not believe current legal matters will have a material adverse effect on its results of operations or financial condition[199](index=199&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section confirms that there are no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors since the Annual Report on Form 10-K for the year ended December 31, 2023[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) As of June 30, 2024, Wayfair had approximately $1.1 billion remaining under its authorized share repurchase programs, with no repurchases made during the three months ended June 30, 2024 - Approximately **$1.1 billion remaining under its authorized share repurchase programs** as of June 30, 2024[201](index=201&type=chunk) - No share repurchases were made during the three months ended June 30, 2024[201](index=201&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Co-Chairman Steve Conine and CEO Niraj Shah adopted Rule 10b5-1 trading plans on May 7, 2024, to sell up to 650,000 shares each, with plans expiring on September 5, 2025 - Co-Chairman Steve Conine and CEO Niraj Shah adopted Rule 10b5-1 trading plans on May 7, 2024, to sell up to **650,000 shares** each, with an expiration date of September 5, 2025[202](index=202&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and various XBRL-related documents - Includes certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL related documents[205](index=205&type=chunk) [Signatures](index=41&type=section&id=Signatures) The report is officially signed by Niraj Shah, Chief Executive Officer and President, and Kate Gulliver, Chief Financial Officer and Chief Administrative Officer, on August 1, 2024 - The report was signed by Niraj Shah (CEO) and Kate Gulliver (CFO) on August 1, 2024[209](index=209&type=chunk) ```

Core Insights - Wayfair's shares have dropped over 11% following the CEO's statement that demand for household goods has reached levels comparable to the "financial crisis" of 2008 [1] - The company reported second quarter earnings that fell short of Wall Street expectations, indicating ongoing struggles since the pandemic [1] - High interest rates and inflation have contributed to a slowdown in new home purchases, further impacting demand for home furnishings [1] Company Actions - Wayfair has implemented significant workforce reductions, cutting 5% of its staff (approximately 870 jobs) last year and an additional 1,650 jobs in January [1] - The company acknowledges over-hiring during the pandemic and is working to return to its core principles [1] - To attract customers, Wayfair is offering substantial discounts, including 60% off bedding and bath linens, which is atypical for this time of year [3] Industry Context - The home furnishings sector is experiencing a significant correction, with demand declines similar to those observed during the 2008-2010 recession [3] - The finance chief of Wayfair noted that the current category correction resembles a GDP recession, highlighting the severity of the situation [3]

Financial Data and Key Metrics Changes - Q2 2024 revenue decreased by 1.7% year-over-year, attributed to macroeconomic challenges and reduced consumer spending [28][11] - Adjusted EBITDA reached $163 million, representing 5.2% of net revenue, marking the best quarter in three years [33][34] - Free cash flow was $183 million, the highest in three years, despite revenue pressures [34][37] Business Line Data and Key Metrics Changes - The company experienced strong performance during promotional events like Way Day, but post-event results fell below expectations due to increased price sensitivity among consumers [9][28] - The gross margin for Q2 was 30.3%, influenced by supplier advertising and price investments [32][33] Market Data and Key Metrics Changes - The home goods category saw a nearly 25% decline from its peak in Q4 2021, with inflation-adjusted spending down over 35% [11][12] - New home sales dropped nearly 20% and existing home sales over 30% in the first five months of 2024 compared to the same period in 2021 [12][14] Company Strategy and Development Direction - The company is focusing on three initiatives for 2024: brand refresh, opening large format stores, and launching a loyalty program [15][24] - Physical retail is seen as a core growth driver, with plans to open more stores based on performance metrics [25][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains challenging, the company is well-positioned to gain market share as the housing market recovers [14][47] - The company anticipates a turnaround in consumer spending as economic conditions improve, particularly in the housing sector [14][47] Other Important Information - The company has maintained a strong focus on cost efficiency, achieving significant reductions in operating expenses [33][34] - Stock-based compensation expenses decreased by over 40% year-over-year, reflecting the impact of cost actions taken in previous years [34] Q&A Session Summary Question: How is the company navigating the tougher consumer environment? - Management indicated a focus on promotional spending to drive traffic while managing advertising costs during non-promotional periods [41][43] Question: Did market share gains compress in Q2 versus Q1? - Management clarified that while the rate of market share growth may have slowed, the overall market share has been consistently increasing over the past seven quarters [52][53] Question: How is the company handling supplier dynamics and CastleGate revenue? - Management emphasized the importance of quality suppliers and noted that interest in using CastleGate is increasing despite a challenging macro environment [55][58] Question: What is the potential ramp for physical stores? - Management stated that the first store has performed strongly, with plans for a second store while ensuring a methodical approach to expansion [63][64] Question: How does the company plan to manage gross margin investments? - Management confirmed that the guidance accounts for gross margin investments, which are aimed at improving order capture in a down market [67][70]

Wayfair saw its quarterly sales dip amid continued pressure on home goods consumers.“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,” Wayfair Co-founder, Co-chairman and CEO Niraj Shah said in a Thursday (Aug. 1) news release.The company’s second-quarter earnings showed total revenues dipping 1.7%, with U.S. r ...

Wayfair (W) reported $3.12 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 1.7%. EPS of $0.47 for the same period compares to $0.21 a year ago.The reported revenue represents a surprise of -1.99% over the Zacks Consensus Estimate of $3.18 billion. With the consensus EPS estimate being $0.50, the EPS surprise was -6.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

分组1 - Wayfair reported quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.50 per share, but showing an improvement from $0.21 per share a year ago, resulting in an earnings surprise of -6% [1] - The company's revenues for the quarter ended June 2024 were $3.12 billion, which was 1.99% below the Zacks Consensus Estimate and a decrease from $3.17 billion year-over-year [1] - Over the last four quarters, Wayfair has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] 分组2 - The stock has underperformed the market, losing about 11.8% since the beginning of the year compared to the S&P 500's gain of 15.8% [2] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $3 billion, and for the current fiscal year, it is $1.13 on revenues of $12.14 billion [4] - The Internet - Commerce industry, to which Wayfair belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5]

Exhibit 99.1 Wayfair Announces Second Quarter 2024 Results, Reports Best Quarter of Profitability and Cash Flow in Three Years Q2 Net Revenue of $3.1 billion with 22.0 million Active Customers BOSTON, MA — August 1, 2024 — Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), one of the world's largest destinations for the home, today reported financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Financial Highlights "Q2 was a dynamic quarter that resulted in another period of shar ...