Wayfair Disappoints Again. The Stock Slips.

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Wayfair’s revenue slightly beat Wall Street’s consensus estimate.

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Gabby Jones/Bloomberg

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Online furnishing company Wayfair delivered another disappointing quarter.

The firm on Thursday reported a loss of $1.94 a share for the three months ended in June. That loss is 4 cents wider than what analysts tracked by FactSet had expected. With the latest report, Wayfair (ticker: W) has failed to meet Street expectations for three quarters in a row.

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Revenue of $3.3 billion in the second quarter was slightly ahead of the estimate of $3.2 billion.

The stock was down 7.4% to $59.65 in premarket trading. Shares dropped 25% after Wayfair reported first-quarter earnings in May.

Wayfair’s problem may be a macro one. Earnings from rival Overstock.com (OSTK) missed last week, with revenue falling 33.5% year over year. Consumers bought furniture earlier in the pandemic. Now, they’re dealing with inflation at 40-year highs.

“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,” said CEO Niraj Shah.

Some analysts were prepared for bad news from Wayfair. Last week, Wells Fargo’s Zachary Fadem reiterated his Underweight rating on shares and cut his price target to $40 from $45.

Wayfair stock is down 66% this year.

Write to Karishma Vanjani at [email protected]

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Credit: www.marketwatch.com /

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