Why Wayfair Stock Is Tumbling Today

Wayfair Inc W shares are trading lower Thursday after the company reported mixed fourth-quarter financial results. The company also reported a year-over-year decrease in active customers and orders delivered.

What Happened: Wayfair reported fourth-quarter revenue of $3.1 billion, which beat average analyst estimates of $3.06 billion, according to Benzinga Pro. The company's top-line results were down 4.6% year-over-year. Wayfair reported an adjusted net loss of $1.71 per share, which missed estimates for a loss of $1.61 per share.

Active customers totaled 22.1 million in the quarter, down 19% year-over-year. Wayfair said it delivered 11 million orders in the fourth quarter, down 9.1% year-over-year. 

"We are excited to see customers respond positively to improvements in our core recipe - with compelling pricing, faster delivery times and increasing availability bearing fruit in the form of market share gains," said Niraj Shah, co-founder, co-chairman and CEO of Wayfair. 

"Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and are reiterating our commitment to quickly reaching adjusted EBITDA profitability and then to positive free cash flow."

In 2023, Wayfair said it will continue to focus on the same key priorities it focused on in 2022, which includes driving cost efficiency, nailing the basics and earning customer and supplier loyalty.

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W Price Action: Wayfair shares are down 10.2% at $44.75 at time of publication, according to Benzinga Pro.

Photo: Rudy and Peter Skitterians from Pixabay.