Wayfair Inc.


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This is our first report on e-commerce giant, Wayfair. The company had a mixed set of results in the last quarter with revenues below Wall Street expectations but narrower-than-expected losses. The net revenue of the company showed a decline. In the U.S., business net revenue outperformed while the company’s international markets, particularly Europe, continued to be impacted disproportionately by geopolitical uncertainty and macro headwinds. It saw strong momentum in CastleGate as it drives various advantages for suppliers, lower retail prices because of ship cost savings, reduced damage rates, better visibility on sites, and quicker conversion via quick delivery. Wayfair has been driving operational cost savings, which could reduce the cost of goods. The management claims to have a tight plan to continue driving cost reductions in the system in a proactive while allowing for flexibility into the future. Among major updates, the company has completed a total migration of its data center services and applications to Google Cloud. It is financing its losses with another issue of $690 million of convertible notes as a part of a liquidity management transaction. Also, the company launched its Shop Sustainability program, the third-party certified sustainable product offering. We initiate coverage on the stock of Wayfair with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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