What to Expect From Wayfair’s Upcoming Q3 Results?

RBC Capital analysts provided their outlook on Wayfair Inc. (NYSE:W) ahead of the upcoming Q3 results announcement, expecting sales of $2.81 billion (in line with the Street) and adjusted EBITDA of ($137) billion (vs. Street’s -$120 billion).

The analysts expect Q3 active customers of 22.8 million (vs. Street estimate of 23.7 million) which would mark the sixth straight quarter of sequential declines. They attribute this to a combination of tough compares and an increasingly challenging consumer environment.

Assuming Q3 sales fall 10-12%, the analysts expect Q4-to-date gross sales to be somewhere in the ballpark of down high-single-digits (sequential progress due to easier comps, not an improving industry backdrop).

Even if the company does deliver ahead of expectations, the analysts believe it will be difficult for management to message any real conviction on 2023 numbers.