What is Wayfair's Q1 growth projection?

Wayfair expects mid-single-digit topline growth year-over-year for the first quarter.

Why are Wayfair's growth forecasts considered conservative?

The forecasts are considered conservative and potentially attributable to colder weather impacting the start of the year.

What is Wayfair's outlook for Q1 gross margins?

Wayfair anticipates its Q1 gross margins will likely be at the low end of the 30% to 31% guidance range.

Home / Business and Economy / Wayfair Shares Tumble on Conservative Growth Outlook

Wayfair Shares Tumble on Conservative Growth Outlook

20 Feb

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Summary

Wayfair anticipates mid-single-digit revenue growth for Q1.
Colder weather is cited as a potential factor in conservative forecasts.
Gross margins are expected to be at the low end of guidance.

Wayfair Shares Tumble on Conservative Growth Outlook

Wayfair's stock price plummeted by as much as 16%, reaching a four-month intraday low. This significant market reaction occurred after the company shared its first-quarter financial projections.

Management indicated an expectation of mid-single-digit topline growth compared to the previous year. Analysts interpret this forecast as conservative, attributing potential softness to colder weather conditions impacting the start of the year.

During a recent conference call, Wayfair's Chief Financial Officer also signaled that the company anticipates its first-quarter gross margins will likely fall within the lower end of the previously stated 30% to 31% guidance range. The CFO elaborated on these financial points in a subsequent discussion.

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