Wayfair ( NYSE: W ) stock added to stark declines in 2022 after posting another disappointing earnings result on Thursday.
The Boston-based eCommerce business posted an adjusted EPS loss of $1.94 alongside a 15% decline in revenue form the prior year to $3.28B. Alongside the downbeat financials, active customers fell 24.1% and from the prior year to 23.6M, adding to concerns about a post-pandemic slowdown. Repeat customers also fell 25.7% year over year.
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the Home. We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period,” CEO Niraj Shah said. "We are actively maneuvering Wayfair to generate cash consistently and to control our own destiny.”
Based on the current trend, the company expects third quarter net revenue to decline sequentially, while margins remain under pressure. Management added that there is a visible trade-down impact on demand.
Finally, while cash on the balance sheet dropped from by nearly $1B in the past year from $2.08B in June 2021 to $1.09B at the close of the second quarter, management remains confident that its liquidity position remains healthy.
Wayfair ( W ) shares fell 6.89% on Thursday’s open, adding to nearly 70% decline year to date .
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Wayfair shares slump on widening losses, declining customer count