Shares of Wayfair (W) are down 14% after the home-furnishings company reported second-quarter financial results that missed Wall Street targets across the board.
The Boston-based company that focuses on online sales of furniture reported earnings per share (EPS) of $0.47 U.S., which fell short of forecasts that called for $0.48 U.S.
Revenue totaled $3.12 billion U.S., which was short of the $3.18 billion U.S. that had been expected among analysts who track the company’s progress.
The disappointing results were blamed on a pullback in consumer spending, particularly on big ticket items such as furniture, as the American economy shows signs of cooling.
In its earnings release, Wayfair likened the current pullback in consumer spending on home furnishings to what was experienced during the 2008-09 financial crisis.
“Customers remain cautious in their spending on the home,” wrote the company in its earnings statement.
The home-furnishings space has struggled in recent quarters as inflation and interest rates remain high.
The sector is also grappling with a difficult housing market as high mortgage rates keep potential homebuyers sidelined in both the U.S. and Canada.
Before today (August 1), the stock of Wayfair had declined 28% over the last 12 months to trade at $54.43 U.S. per share.
