![]() ![]() “Suppliers are in a position where they want to sell more goods,” Shah said. ![]() This “dramatic shift” in inventory position also means key items are back in stock, and Shah said that suppliers are keen to continue working with Wayfair because of its wholesale capability. It also means “nailing the basics” on execution, and earning customer loyalty - repeat customers placed nearly 79% of orders in the second quarter.Īnd while that plan doesn’t rely on revenue growth, Shah pointed to the ability of suppliers to generate great deals for customers thanks to supply overages following last year’s inventory drops. Shah said the plan to return to profitability includes cost-savings measures like pausing hiring back in May and delaying European market expansions in favor of focusing on the United Kingdom and Germany. But that success dropped off and the company returned to posting losses in the third quarter of 2021. Overall customers were down to 23.6 million as of June 2022, a drop of 24% compared to a year ago and almost two million fewer than the first quarter. Total net revenue was $3.3 billion, down 14.9% year over year, with $2.8 billion generated from the U.S.ĭuring the pandemic, Wayfair finally hit profitability for the first time amid a surge in furniture spending in the first half of 2020. Wayfair CEO Niraj Shah said on Thursday’s earnings call that it’s “unmistakable” that these factors have impacted consumer behavior, with shoppers being more cautious with their discretionary spending. Russia’s ongoing invasion of Ukraine causes further instability in Europe, where inflation is also impacting customers. While pandemic lockdowns sent demand for furniture and home goods to unprecedented levels, inflation is causing U.S. ![]()
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