Wayfair CEO Says Furniture Business Similar Now to Great Financial Crisis

People aren’t buying furnishings to a grade that hasn’t been felt since nan Great Recession of 2008, according to Wayfair's (W) CEO.

Shares of nan online location furnishings retailer dropped aft nan company’s second-quarter results were hindered by "continued macro headwinds," Niraj Shah said Thursday. “Customers stay cautious successful their spending connected nan home, and our in installments paper information suggests that nan class correction now mirrors nan magnitude of nan highest to trough diminution nan location furnishing abstraction knowledgeable during nan great financial crisis." 

That outlook manifested successful Wayfair’s third-quarter gross projection, pinch nan institution projecting a diminution successful in nan debased azygous digits. Analysts were expecting a astir 1% decline, per estimates compiled by Visible Alpha. 

The news pulled Wayfair's shares down 8% successful Thursday's session. The banal is down astir 20% this twelvemonth aft a steep climb successful May driven by better-than-expected first-quarter results.

It's nan latest company-level position into nan authorities of nan U.S. consumer, pinch a number of companies reporting different degrees of accent successful American households. One caller report said nan user was "increasingly tapped out."

In nan 2nd quarter, nan institution reported gross of $3.1 billion, down 1.7% year-over-year, and a nonaccomplishment of $42 million, aliases 34 cents per share.  Both results were successful statement pinch expectations, per Visible Alpha.

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