Wayfair (NYSE: W) shares fell over 20% Thursday morning after the retailer reported disappointing first-quarter results as customers reduced spending on home items. Furthermore, the company revealed the departure of its chief financial officer, Michael Fleisher, set to retire at the start of next year. Fleisher will remain with the company until next January, for a transition period, it said.
The e-commerce company reported an earnings loss of USD1.52 per share, compared to the expected USD1.96 a share. Meanwhile, revenue amounted to USD2.99 Billion, in line with analysts’ expected USD2.99 Billion.
“The companies that will be most successful in navigating this dynamic environment are those that can act with agility, balancing near-term demands with outsized longer-term opportunities — which is an apt description for Wayfair. We are well-positioned to outperform and gain share from here, particularly as supply chain constraints ease, and we are not losing sight of the massive market opportunity still ahead. At the same time, we are focused on returning to adjusted EBITDA profitability. We have complete confidence in the structural economics of our business based on the investments we have made and the key drivers that should propel profitability higher over time.”
Nevertheless, Wayfair reported that active customers had declined 23.4%, to 25.4 million, in comparison to the previous year. Orders per customer amounted to 1.87, lower than last year’s 1.98. Orders from returning customers also fell from 2021 levels, amounting to 8.1 million, a 26% decline.