The UK division of online furniture retailer Wayfair has reported a decline in sales and profit.
According to its latest filed accounts for the year ended 31 December 2024, total sales fell 14% to £59.4m from £69.1m in 2023.
Pre-tax profit resulted at £2.2m, down from £2.6m recorded the previous year. Net assets in the UK valued £12.9m, up from £11.6m.
Stated within its report, Wayfair said: “The revenue of the Company decreased by 14% in 2024, when compared with 2023, mainly driven by a 17% decrease in administrative expenses, to which a % markup is applied. The operating margin increased to 4% for 2024 (2023: 2%).
“The Company is focused on driving cost efficiency, nailing the basics; and earning customer and supplier loyalty every day. Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and contribute positively to our ultimate parent’s, Wayfair Inc., commitment to maintain adjusted EBITDA profitability and then to reach positive free cash flow.”
During the period, Wayfair UK saw employee numbers decline by 31% to 405 from 587 against the previous year, further adding to its reduction from 847 in 2022. This saved around £7.7m in wage costs year-on-year, although it did incur a restructuring expense of £1.8m.