W - Wayfair: Is An H2 FY24 Turnaround Achievable? (Rating Upgrade)

2024-05-28 04:33:18 ET

Summary

• Wayfair is banking on aggressive turnaround actions to return to growth in Q2 and the second half of FY24.
• The company has launched a new advertising campaign ("Wayborhood") and expects a category-based rebound in the second half of the year. In addition, it has opened its first physical store.
• In spite of these potential upside catalysts, we should still note that Wayfair faces stiff competition, and its international segment is still incurring double-digit adjusted EBITDA margin losses.

It's been a rough couple of years for Wayfair ( W ), but the company is focused on its rebound plan. The online furniture retailer, also the largest pure-play e-commerce vendor for furniture, has seen roughly ~flat stock price action this year. As it looks ahead to the second half of 2024, the company has a brand-new advertising campaign in place and notes that its y/y revenue declines have stopped....

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