Wayfair CEO likens home goods slowdown to 2008 financial crisis: 'Customers remain cautious'

Company Performance - Wayfair's sales declined to $3.12 billion in the fiscal second quarter, down approximately 2% from $3.17 billion a year earlier, despite an increase in average order values from $313 to $307 [2] - The company reported a loss of $42 million, or 34 cents per share, which is an improvement from the loss of $46 million, or 41 cents per share, in the same quarter last year [1][2] - Adjusted EBITDA for the quarter was $163 million, slightly below Wall Street's expectation of $168 million [4] Market Conditions - The home goods category is experiencing a significant correction, comparable to the declines seen during the 2008 financial crisis, as consumers are cautious in their spending due to high interest rates and inflation [1][3] - The overall housing market has stagnated, leading to reduced demand for new furniture as consumers are buying fewer new homes [2] - Wayfair has been offering discounts to attract customers and does not anticipate a recovery in the home goods category until interest rates are reduced and the housing market improves [2] Strategic Initiatives - Wayfair has implemented mass layoffs to align its cost structure with the current size of its business [4] - The company aims to demonstrate substantial growth in profitability moving forward, despite challenges in top-line growth [4] - The opening of its first large format store is part of its strategy to enhance customer engagement [2]