BOSTON — Home furnishings e-commerce giant Wayfair posted a double-digit decline in second quarter sales and swung to a loss vs. last year’s second quarter as a slowdown in consumer demand continues to work its way through the industry.
Total net revenue for the period ended June 30 decreased 14.9% to $3.3 billion, while U.S. net revenue was down 9.7% to $2.8 billion.
The net loss for the period was $378 million, or negative $3.59 per share, compared to a profit of $131 million, or $1.14 per share, in the second quarter of 2021.
Through the first six months, Wayfair’s net revenue declined 14.4% per $6.3 billion from $7.3 billion in the first half of last year. The net loss rose to $697 million, or negative $6.62 per share, vs. a profit of $149 million, or $1.33 per share, a year ago.
In morning trading, Wayfair’s shares were down by as much as 8% but have since bounced back, gaining more than 4%, or $2.75 to climb to $67.19 at 10:30 a.m.
“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, Niraj Shah, CEO, co-founder and co-chairman said in a release.
“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.”
He said Wayfair is prioritizing “to balance continued investment in long-term growth while ensuring tight day-to-day execution across a range of macro scenarios.”
Here are a few more second quarter highlights:
- Active customers decreased 24.1% year-over-year to 23.6 million.
- Average order volume increased to $330 from $278 in the second quarter last year.
- Wayfair delivered 10 million orders in the quarter, down 28.2% from a year ago.
- Repeat customers placed 78.6% of total orders, up from 75.6% a year ago, but the number of repeat customer orders decreased 25.7% to 7.8 million orders.