Why Wayfair Shares Are Plunging Today

Wayfair Inc W reported a first-quarter FY22 sales decline of 13.9% year-on-year to $2.993 billion, marginally missing the consensus of $3.00 billion.
International net revenue fell 31.4% to $0.5 billion, while the U.S. revenue declined 9.9% to $2.5 billion.
The number of active customers reached 25.4 million as of March 31, 2022, a 23.4% decrease Y/Y. The average order value grew 21.1% Y/Y to $287.
In Q1, 59.4% of total orders delivered were placed through a mobile device, versus 60% last year.
Adjusted EPS loss of $(1.96) missed the analyst consensus of $(1.56).
Adjusted EBITDA was a $(113) million loss versus $206 million a year ago.
Gross profit fell 19.9% Y/Y to $803 million, and the margin contracted 200 basis points to 26.8%.
Loss from operations for the quarter was $(310) million versus a $26 million profit last year.
The company held $2.0 billion in cash and equivalents as of March 31, 2022. Net cash used in operating activities amounted to $(226) million.
The company said it is focused on returning to adjusted EBITDA profitability.
Wayfair also revealed the upcoming retirement of CFO Michael Fleisher and the planned appointment of Kate Gulliver to the role of CFO and Chief Administrative Officer in November.
Price Action: W shares are trading lower by 21.5% at $71.25 on the last check Thursday.

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