Wayfair CEO compares sales decline to 2008 recession due to consumer caution amid US economic concerns, reporting a 2% drop in Q2 sales.

Wayfair CEO Niraj Shah has likened the company's current home goods sales decline to the sales trends during the 2008 recession due to consumer caution amid fears of a US economic recession. Wayfair reported a 2% drop in sales in its fiscal second quarter, falling short of Wall Street's expectations on both the top and bottom lines. The company is experiencing a 'massive correction' in its sector due to high interest rates, slower housing market, and inflationary pressures, causing consumers to be more cautious with their spending on home goods. Federal Reserve Chair Jerome Powell has suggested potential interest rate cuts as soon as September, which could help improve the situation for Wayfair and other home goods companies.

August 01, 2024
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