Wayfair Drops as Colder Weather Muddies 1Q Guidance

Home goods retailer Wayfair saw shares plummet up to 16% intraday, reaching a four-month low after releasing conservative first-quarter guidance tied to weaker-than-expected growth projections. The company forecast mid-single-digit year-over-year revenue growth for Q1, a figure Jefferies analysts called conservative, citing colder early-year weather as a key factor dampening demand. Wayfair’s CFO warned first-quarter gross margins would likely hit the low end of its 30%–31% guidance range, signaling potential profitability pressures ahead. Chief Financial Officer Kate Gulliver addressed the outlook in a Bloomberg interview, attributing the cautious forecast to seasonal challenges and macroeconomic headwinds. The stock decline reflects investor concerns over slower growth and margin compression, amplifying scrutiny on Wayfair’s ability to navigate a softer consumer spending environment.