From CNBC: 2024-05-02 07:30:51

Wayfair’s first quarter sales dipped, but the online furniture retailer narrowed losses after cutting 13% of its workforce at the start of the year. Despite the drop, revenue beat expectations at $2.73 billion. CEO Niraj Shah expressed optimism as active customers increased by nearly 3% compared to the previous year.

The company’s net loss for the quarter was $248 million, or $2.06 per share, an improvement from the previous year’s $355 million loss. International sales fell by almost 6%, with an overall decrease in revenue from $2.77 billion to $2.73 billion. Wayfair shares surged up to 9% in premarket trading following the announcement.

Wayfair, like its peers, implemented layoffs to adapt to changing consumer behaviors post-pandemic. The company cut 1,650 employees in January, aiming to save about $280 million. Despite challenges, Wayfair trimmed losses by $107 million in the first quarter and grew its active customer base to 22.3 million.

The average order value for Wayfair in the quarter was $285, slightly higher than expected by analysts. The company attributed the slight decrease from the previous year to adjustments in unit prices. CEO Shah mentioned suppliers introducing new products into catalogs, illustrating growth potential for the company.



Read more at CNBC:: Wayfair (W) earnings Q1 2024