Wayfair Posts a Wider-Than-Expected Loss and the Stock Slips

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Wayfair’s revenue slightly beat Wall Steet estimates.

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Gabby Jones/Bloomberg

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Wayfair,
the online home furnishings company, delivered another disappointing quarter, reporting a loss of $1.94 a share for the three months ended in June. That is 4 cents wider than what analysts tracked by FactSet expected.

The stock was down 0.7% in premarket trading. The shares have fallen more than 66% this year.

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

Wayfair‘s
The disappointing results weren’t unique. Rival Overstock.com also delivered an earnings miss last week. The problem is macro. Consumers have already bought much of their furniture and they are now dealing with inflation at 40-year highs.

That said, Overstock’s ability to deliver a profit of 19 cents a share in the quarter stood out. The stock rose more than 7% after its earnings report.

Analysts were bracing for bad news on Wayfair. Wells Fargo’s Zachary Fadem reiterated his Underweight rating on Wayfair stock and cut his price target to $40 from $45 last week.

Write to Karishma Vanjani at [email protected]

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Credit: www.marketwatch.com /

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