Home furnishings giant Wayfair reported dramatic declines for the first quarter of ’22, with net sales down nearly a half billion dollars year-over-year. This 14% drop is emblematic of a furnishings industry facing many challenges during the first half of the year.
Many furnishings dealers are reporting double-digit declines in the face of an inventory glut.
Notable in the Wayfair Q1 results: a heightened reliance on repeat business. Repeat customers accounted for nearly 78% of Wayfair’s orders, yet even these repeat orders were down 26% versus last year. Active customers are down 23%, signaling the company’s inability to acquire new customers.
The home furnishing e-commerce giant and No. 1 on Home News Now’s 125 ranking reported a first-quarter net loss of $319 million, compared to an $18 million gain for the same period a year ago.Net revenue for the period ended March 31 fell to $2.99 billion, down 13.9% from $3.48 billion a year ago. Shares closed down nearly 26% to $67.45 per share. The S&P 500, by comparison, was off 3.56%. The tech-heavy Nasdaq closed down nearly 5%.
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Wayfair swings to a Q1 loss, stock plummets – Home News Now