Global furniture retailer Wayfair has reported a decline in sales although overseas delivered a slight uptick.
According to its latest trading update for the second quarter ended 30 June 2024, total sales fell 1.7% to $3.1bn, a decline of $54m against the same period last year.
US sales fell 2% to $2.7bn, while International sales rose 0.3% to $387m. Gross profit was $941m, or 30.2% of total net revenue, while net losses stood at $42m, narrowing slightly from a loss of $46m.
As for the six month period, total sales were down from $5.9bn to $5.8bn. Losses narrowed from $401m to $290m.
Wayfair said that active customers during Q2 totalled 22 million, an increase of 0.9% year-on-year, while orders delivered were 10 million, a decrease of 2.9%.
Repeat customers placed 81.7% of total orders delivered in the second quarter compared to 80.1%. This equated to repeat customers placing 8.1 million orders, a reduction of 2.4%.
Niraj Shah, CEO, co-founder and co-chairman, Wayfair, said: “Q2 was a dynamic quarter that resulted in another period of share gain, amid continued macro headwinds that are pressuring the ways customers are shopping the category. Customers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis.
“Every action we’ve taken, every goal we’ve prioritized, and every dollar we’ve spent has been considered under the intense scrutiny of our high expectations for return-on-investment. Even with the challenging macro, this was our best quarter of Adjusted EBITDA ($163m) and Free Cash Flow generation in three years, clear evidence of our strict operating discipline. We are running the business with the goal of demonstrating substantial growth in profitability this year, even as the top line remains challenging. And that will be our mindset every year going forward as well.”
Wayfair has recently filed its latest UK accounts, which saw a decline in sales as profit remained strong. Read more.
