Wayfair(US:W) INDUSTRIAL SECURITIES·2024-08-08 01:31Investment Rating - The report does not provide a specific investment rating for the company [4]. Core Insights - The company reported a narrowing net loss in Q2 2024, with revenue of $3.117 billion, a year-on-year decrease of 1.7%. The decline was attributed to a weak macroeconomic environment, reduced promotional activities, and lower advertising spending [5][6]. - In Q2 2024, the gross margin was 30.2%, down 0.9 percentage points year-on-year. Adjusted EBITDA reached $163 million, a year-on-year increase of 27.34%, representing 5.2% of net income, marking the strongest quarterly performance in three years [5][6]. - The total number of active customers in the first half of 2024 was 22 million, a year-on-year increase of 0.9%, with repeat customers accounting for 81.7% of total orders in Q2 2024, compared to 80.1% in Q2 2023 [5][6]. Financial Performance Summary - Revenue (in million USD): - 2020: 14,145 - 2021: 13,708 - 2022: 12,218 - 2023: 12,003 - Year-on-year growth rates: 55.0%, -3.1%, -10.9%, -1.8% [2]. - Net profit (in million USD): - 2020: 185 - 2021: -131 - 2022: -1,427 - 2023: -838 [2]. - Gross margin (%): - 2020: 29.1 - 2021: 28.4 - 2022: 28.0 - 2023: 30.6 [2]. Future Guidance - The company expects Q3 2024 revenue to decline by a low single-digit percentage year-on-year, with gross margins in H2 2024 projected to remain between 30% and 31% [5][6]. - The company anticipates benefiting from scale effects as interest rates decline and demand recovers, with consumer spending expected to return to average levels as the housing market and economy improve [5][6].