11:49 AM EDT, 08/01/2024 (MT Newswires) -- Wayfair's ( W ) revenue unexpectedly fell in the second quarter as the broader home goods category experienced a correction mirroring the 2008 recession, driving an "unprecedented" pullback in consumer spending, Chief Executive Niraj Shah said Thursday.

Revenue dipped to $3.12 billion for the three months ended June 30 from $3.17 billion a year ago, compared with the $3.18 billion average analyst estimate on Capital IQ. Adjusted earnings per share climbed to $0.47 from $0.21 year over year, in line with market expectations.

US revenue fell 2% to $2.73 billion while international sales edged up 0.3% on a reported basis to $387 million. Last 12 months revenue per active customer fell 0.9% to $540 and orders delivered decreased 2.9% to 10 million. Shares of Wayfair ( W ) were down 4.2% in Thursday trade.

"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," Shah said in a statement.

Home goods category spending was down nearly 25% from the fourth quarter of 2021's peak, Shah told analysts on a conference call, according to a Capital IQ transcript. A weak housing market, overspending during the pandemic and a slowing US economy are driving the category's correction, he said.

When adjusting for inflation, the category is "in the midst of a correction in excess of 35% and an unprecedented level of pullback," according to Shah.

For the third quarter, Wayfair ( W ) expects revenue to be down in the low single-digit percentage range from the $2.94 billion it reported for the same period of 2023, Chief Financial Officer Kate Gulliver told analysts. The Capital IQ-polled consensus is for revenue of $2.99 billion.

The digital retailer continues to operate in the 30% to 31% range for gross margin but expects to be at the lower-half of the range in the third and fourth quarters, according to Gulliver. "While 2024 has not been a year of strong macro and top-line recovery, as many had hoped, we're extremely proud of the work we've done across our cost structure to drive considerable profitability growth regardless of the headwinds," she said.

Price: 52.80, Change: -1.63, Percent Change: -2.99