The house items class has seen its share of twists and turns over the previous 5 years: a pandemic-era increase after which a hunch when customers pivoted towards journey and experiences moderately than bodily gadgets. Now, it’s dealing with headwinds within the type of tariffs and an unsure economic system, and generative AI may very well be altering how folks store.
Kate Gulliver, CFO and chief administrative officer at Wayfair, spoke with CFO Brew about her profession, and about her firm’s plan to roll with the punches.
From startup to class chief: In some methods, Gulliver has grown together with Wayfair. After working in personal fairness, she joined the corporate as head of investor relations in 2014, and helped to run its IPO. At the moment, it had about $1 billion in gross sales and a couple of,000 staff, Gulliver mentioned. She describes it as “a brilliant high-growth however comparatively immature firm from a methods and course of perspective.” At present, Wayfair employs round 12,000 folks and introduced in $12 billion in income from June 2024 by June 2025.
From investor relations, Gulliver turned world head of expertise, and was named CFO and CAO in 2022. Her profession at Wayfair has advanced in an natural trend.
“I largely let my profession be guided by the chance most instantly in entrance of me,” she mentioned. “I’ve by no means tried to information towards ‘10 years from now, right here’s the place that position is getting me.’ It’s been extra ‘Is that this the following proper transfer?’”
As a mixed CFO and chief administrative officer, Gulliver has lots on her plate: HR, finance, actual property, authorized and compliance, company affairs, and communications all report back to her. She enjoys the breadth of the twin position, which she says offers her perception into the “spine” of the corporate. “Intellectually,” the numerous departments she oversees “can really feel fairly completely different day after day, which is enjoyable,” she mentioned.
A turbulent 5 years for retail: As a vendor of discretionary items, Wayfair has been on a rocky journey over the previous 5 years. It was capable of capitalize on the house items increase of the pandemic, when consumers caught in lockdown had been shopping for gadgets for his or her areas. However as restrictions lifted and customers pivoted towards spending on experiences, it noticed internet losses for 3 consecutive years. Wayfair needed to restructure and underwent a number of rounds of layoffs, reducing round 13% of its workforce, or 1,650 jobs, in 2024.
Now, although, the class is “beginning to stabilize,” Gulliver mentioned. Wayfair had a bumper second quarter this 12 months, with revenues rising 5% 12 months over 12 months.
“We’re feeling good concerning the momentum at the moment,” she mentioned.
Wayfair isn’t seeing client softness but as a consequence of tariffs and financial uncertainty, Gulliver mentioned, although it’s seeing extra power in its high-end strains, reminiscent of Perigold, AllModern, and Joss & Primary, than in its “core mass” strains. (“There’s no query the higher-end market is stronger than mass,” CEO Niraj Shah mentioned throughout a latest earnings name.) The corporate is conserving its eye on the macroeconomic image, although. It’s doing quite a lot of forecasting, incorporating each its inside information and third-party inputs reminiscent of bank card information and housing market developments, Gulliver mentioned.
To date tariffs haven’t had that a lot of an influence, Gulliver mentioned. That’s partly as a result of Wayfair is a market. Sellers submit many unbranded gadgets that look much like each other, so that they’re largely competing on worth, she mentioned. Decrease costs additionally enable for higher placement on Wayfair’s search outcomes, boosting gross sales. Sellers, Gulliver mentioned, are discovering methods to soak up or offset tariffs at completely different factors alongside the provision chain, which is “serving to to insulate customers” from larger costs. “Shoppers are nonetheless seeing like-for-like pricing,” she mentioned.
AI, how about midcentury trendy? Wayfair can also be anticipating modifications generative AI would possibly make to purchasing habits. It’s partnering with some main AI suppliers on growing agentic purchasing instruments, Gulliver mentioned. And it’s added GenAI options to its web site and app that present prospects how furnishings would possibly look in several areas inside a house, alongside suggestions for related Wayfair merchandise. “It’s a enjoyable method to capitalize on how customers is likely to be altering how they store,” Gulliver mentioned.
On the identical time, the retailer’s made a surprisingly analog transfer: opening brick-and-mortar shops. Its Chicago retailer has resulted in a “halo” impact, boosting gross sales and model recognition within the Chicago space, Shah mentioned on an earnings name. Three extra bodily shops are deliberate within the coming years.
As a Wayfair shopper and residential design fan herself (“That’s the factor I examine in my spare time”), Gulliver understands what customers are on the lookout for. However even her broad remit, she acknowledges, solely goes up to now. “I’m all the time going to the model staff or the service provider staff” and asking, ‘Have we thought of getting this product?’,” she mentioned. “They usually’re like, ‘Kate, keep in your lane.’”
This report was initially revealed by CFO Brew.
