Wayfair Inc. ( W ) shares dip after second-quarter results show adjusted EPS and sales falling short of expectations amid cautious consumer spending and a challenging market.

The company reported adjusted earnings per share of 47 cents, missing the street view of 49 cents.

Quarterly sales of $3.117 billion (down 1.7%) missed the analyst consensus of $3.179 billion.

U.S. net revenue fell by $55 million to $2.7 billion, down 2.0% year-over-year, while international net revenue rose by $1 million to $387 million, up 0.3%, with a constant currency growth of 1.3%.

“Customers remain cautious in their spending on the home, and 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,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair ( W ).

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Quarterly active customers totaled 22.0 million as of June-end, an increase of 0.9% year over year.

Orders delivered in the second quarter of 2024 were 10.0 million, a decrease of 2.9% year over year.

“Even with the challenging macro, this was our best quarter of Adjusted EBITDA and Free Cash Flow generation in three years, clear evidence of our strict operating discipline,” Shah added. 

The company exited the quarter with cash and equivalents worth $1.3 billion. Inventories as of quarter end totaled $78 million.

Price Action: W shares are trading lower by 3.88% to $52.32 at last check Thursday.

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