---
title: "Wayfair Execs WarnHome Goods Slowdown Mirrors 2008 GFC"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/210598271.md"
description: "Wayfair executives warn of a slowdown in the home goods industry, comparing it to the 2008 financial crisis. Concerns over the US economic slowdown and disappointing earnings reports from Amazon and Intel have triggered a global stock selloff. Wayfair's CFO states that declines in consumer spending on home goods are similar to those during the recession, despite the country not being in a GDP recession. Goldman Sachs also highlights the health of the consumer as a major concern."
datetime: "2024-08-02T14:01:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/210598271.md)
  - [en](https://longbridge.com/en/news/210598271.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/210598271.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/210598271.md) | [繁體中文](https://longbridge.com/zh-HK/news/210598271.md)


# Wayfair Execs WarnHome Goods Slowdown Mirrors 2008 GFC

Increasing concerns over a US economic slowdown (or just a reminder a hard landing is still possible) triggered a broad selloff in global stocks overnight and into the US premarket session.

Investors' anxieties soared late Thursday afternoonfollowing dismal earnings reports fromAmazon and Intel.Corporate earnings have so farindicated that US consumers are struggling, and it seems only a matter of time before Goldman Sachs advises clients to short stocks withthe highest exposure to high-income consumers, already telling clients to shortlow- and mid-income consumer stocks in recent months.

Highlighting comments from Wayfair CEO Niraj Shah, an earnings press release on Thursday stated, **"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."**

In an interview with CNBC,Wayfair CFOKate Gulliver warned,**"We see declines that are similar to the declines that we saw in that 2008 to 2010 period and I think what that speaks to is that the category has been going through just a massive correction, a correction that we've previously only seen during a GDP recession."**

Gulliver continued, **"Obviously we're not technically in a GDP recession as a country right now, and so this is somewhat a unique thing to this category … we've seen that kind of recession-like correction in the category over the last few years."**

Separately, Goldman'sScott Feiler told clients this AM, **"The big topic all of a sudden the "last few days" is around the health of the consumer."**

Feiler said, "**The slowdown has broadened** out and picked up further in June/July, **led by a lot of bellwethers**. That alone should not be a huge debate. The debate should be intensity and whether it's priced in."

As forWayfair's second-quarter earnings report, Goldman'sEric Sheridan said, "**Wayfair produced disappointing topline results** as revenue declined nearly -2% YoY with demand softening through the quarter despite a successful Way Day in early May (up DD% vs. 2023) as **consumers proved increasingly price sensitive and pulled back further outside of promotional events."**

Sheridan said, "We **reiterate our Neutral rating** and **reduce our price target from $67 to $54** mainly from lower operating estimates."

Meanwhile, darkening clouds continue to gather over the US economy following this AM's payroll report, which shows a big slowdown in employment and a higher unemployment rate, so much so that recession risks are rising.

Loading...

### Related Stocks

- [Wayfair Inc. (W.US)](https://longbridge.com/en/quote/W.US.md)

## Related News & Research

- [Better Buy: Wayfair or Brown‑Forman as Their Stocks Diverge to 52‑Week Highs and Lows?](https://longbridge.com/en/news/271832102.md)
- [As Wayfair Launches New AI Shopping Features, Should You Buy, Sell, or Hold W Stock?](https://longbridge.com/en/news/272581646.md)
- [Wayfair (W) Valuation Check After Google AI Commerce Partnership And Strong Recent Share Returns](https://longbridge.com/en/news/272531158.md)
- [Wayfair CTO Fiona Tan Reports Disposal of Common Shares](https://longbridge.com/en/news/272759944.md)
- [Wayfair kündigt vorzeitige Rückzahlung von Wandelanleihen über 250 Millionen Dollar an](https://longbridge.com/en/news/275173236.md)