The house items class has seen its share of twists and turns over the previous 5 years: a pandemic-era growth after which a droop when customers pivoted towards journey and experiences reasonably than bodily gadgets. Now, it’s going through headwinds within the type of tariffs and an unsure financial system, and generative AI could possibly be altering how individuals 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 pair of,000 staff, Gulliver mentioned. She describes it as “an excellent high-growth however comparatively immature firm from a techniques and course of perspective.” As we speak, Wayfair employs round 12,000 individuals and introduced in $12 billion in income from June 2024 by means of June 2025.
From investor relations, Gulliver turned international head of expertise, and was named CFO and CAO in 2022. Her profession at Wayfair has advanced in an natural style.
“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 subsequent proper transfer?’”
As a mixed CFO and chief administrative officer, Gulliver has a lot 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 provides her perception into the “spine” of the corporate. “Intellectually,” the numerous departments she oversees “can really feel fairly totally different each day, which is enjoyable,” she mentioned.
A turbulent 5 years for retail: As a vendor of discretionary items, Wayfair has been on a rocky experience over the previous 5 years. It was in a position to capitalize on the house items growth 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 in regards to the momentum presently,” she mentioned.
Wayfair isn’t seeing shopper softness but as a result of tariffs and financial uncertainty, Gulliver mentioned, although it’s seeing extra power in its high-end strains, resembling Perigold, AllModern, and Joss & Essential, than in its “core mass” strains. (“There’s no query the higher-end market is stronger than mass,” CEO Niraj Shah mentioned throughout a current earnings name.) The corporate is holding its eye on the macroeconomic image, although. It’s doing a variety of forecasting, incorporating each its inside information and third-party inputs resembling bank card information and housing market developments, Gulliver mentioned.
Thus far tariffs haven’t had that a lot of an influence, Gulliver mentioned. That’s partly as a result of Wayfair is a market. Sellers put up many unbranded gadgets that look just like each other, so that they’re largely competing on value, 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 totally different factors alongside the availability chain, which is “serving to to insulate customers” from increased costs. “Customers are nonetheless seeing like-for-like pricing,” she mentioned.
AI, how about midcentury trendy? Wayfair can also be anticipating adjustments generative AI would possibly make to buying habits. It’s partnering with some main AI suppliers on growing agentic buying instruments, Gulliver mentioned. And it’s added GenAI options to its web site and app that present prospects how furnishings would possibly look in numerous areas inside a house, alongside suggestions for comparable Wayfair merchandise. “It’s a enjoyable option 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 at all times going to the model crew or the service provider crew” 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.
