For the second quarter, Wayfair recorded a loss during a period the company’s chairman termed “difficult.”
Net loss came in deeper than the $1.89 in a Yahoo Finance-published analyst consensus estimate. Still, revenue came in ahead of a $3.18 billion Q2 estimate.
Net revenue was $3.28 billion versus $3.86 billion in the year-before quarter, the company reported. Operating loss was $372 million versus operating income of $146 million in the period a year earlier.
In announcing the financial results, Niraj Shah, Wayfair CEO, co-founder and co-chairman, said, “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. Consumers remain engaged and responsive to the right combination of wide selection, great deals and satisfying service, while suppliers are leaning in with Wayfair, extending us more product and better wholesale costs while using more of our service offerings. Simultaneously, we are actively maneuvering Wayfair to generate cash consistently and to control our own destiny. Underpinning this plan is a broad prioritization exercise intended to balance continued investment in long-term growth while ensuring tight day-to-day execution across a range of macro scenarios.”
Pulse Ratings, in a research note reviewing the Wayfair financials, pointed out that Wayfair enjoyed a brief period of generating positive EBITDA — adjusted EBITDA, rather than as positive earnings, came in as a $108 million loss in the second quarter — but with sales normalizing and costs increasing, couldn’t manage to do so in Q2.