Online home goods company Wayfair has seen sluggish demand against high interest rates, but repreive could come if the federal reserve cuts rates in September
Wayfair CEO Niraj Shah likened the slowdown in the home goods category to the great financial crisis as the company reported misses on the top and bottom lines.
"Our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis," Wayfair CEO Niraj Shah said in a news release."Customers remain cautious in their spending on the home."The e-tailer fell short of Wall Street's expectations on both the top and bottom lines. Shares fell 15% in premarket trading Thursday.
Sales dropped to $3.12 billion, down about 2% from $3.17 billion a year earlier. The slowdown in sales came even as average order values rose in the quarter from $313 to $307 and after the company "We see declines that are similar to the declines that we saw in that 2008 to 2010 period and I think what that speaks to is that the category has been going through just a massive correction, a correction that we've previously only seen during a GDP recession," Wayfair finance chief Kate Gulliver told CNBC in an interview.
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