Wayfair’s stock dropped 26% Thursday after the company disclosed bigger-than-expected losses in the first quarter due to lower home spending.
Wayfair’s CFO, Michael Fleisher, will retire early next year. In November, current CFO Kate Gulliver will become CFO. Fleisher will stay on until January, the business stated.
Despite falling revenues, Wayfair co-founder and CEO Niraj Shah says customer health is “relatively strong.”
During the epidemic, customers redirected their spending online to buy new home decor and office furniture. But supply chain issues have caused order delays and dissatisfied customers.
“Agility is the key to succeed in this changing environment,” Shah said in a press statement.
The stock hit a 52-week low of $65.32 before closing at $67.45.
Wayfair reported a 23.4 percent fall in active consumers to 25.4 million in the first quarter of 2022. Orders per client fell to 1.87 from 1.98 last year. Recurring client orders declined by 26% to 8.1 million, down from a year earlier.
Active customers are those who have made at least one direct purchase from Wayfair in the last year.
Wayfair lost $319 million in the three months ended March 31, compared to $18 million, or 16 cents per share, a year earlier.
It lost $1.96 per share excluding one-time items A Refinitiv poll found that analysts expected a $1.56 loss per share.
Sales declined about 14% to $2.99 billion from $3.48 billion. That was expected by analysts.
US net revenue fell 9.9% to $2.5 billion, while international net revenue fell 31.4% to $451 million.
Wayfair’s goal, according to Shah, is to return to adjusted earnings before interest, taxes, depreciation, and amortisation.
Year to date, Wayfair shares are down 64%.
