Wayfair lost $378 million in the second quarter! The number of active users has dropped significantly!

It is learned that recently, Wayfair, an American home furnishing e-commerce company, announced its second-quarter financial results. The financial report shows that due to the sharp drop in home furnishing demand, Wayfair's active users and order volume both declined in the second quarter.

In the second quarter, Wayfair's active customers dropped to 23.6 million, a year-on-year decrease of 24.1%, and the number of orders dropped to 10 million, a year-on-year decrease of 28.2%. The report pointed out that the home improvement boom caused by the epidemic has subsided, and consumer preferences have changed dramatically.

Wayfair CEO Niraj Shah said that in the difficult macroeconomic environment, Wayfair will continue to focus on customers and suppliers to ensure that it is the preferred platform for home shoppers. At present, Wayfair still offers a wide range of product selections and high-quality services, which can still attract consumers. At the same time, suppliers are also moving closer to Wayfair to expand their business.

Wayfair's net revenue in the second quarter was $3.3 billion, down nearly 15% year-on-year, with revenue in the U.S. falling 9.7% to $2.8 billion and revenue in the international market falling 35.7% to $488 million.

Due to the sharp drop in demand for home decoration, Wayfair fell into losses again this quarter, with a net loss of US$378 million, turning from profit to loss compared with a profit of US$131 million in the same period last year.

According to GlobalData, including the new quarter, Wayfair's losses in the past four quarters are close to $1 billion. As of now, the company's liabilities exceed its assets by $2.1 billion, an increase from $1.6 billion a year ago. Since the online shopping boom subsided, Wayfair's growth rate has returned to pre-epidemic levels and has been struggling for profitability.

It is reported that due to continued losses this quarter, Wayfair will focus on cutting operating costs in the future, while suspending further expansion in Europe and focusing on shifting to physical retail plans in the United States.

Editor ✎ Nicole/

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