Shares of Wayfair Inc. (W) plummeted 5.3% intraday on Friday, following the company's mixed fourth-quarter and full-year 2024 earnings report. The online home furnishing retailer reported a narrower loss but missed analysts' earnings per share expectations, with revenue growth slowing due to challenges in the macroeconomic environment and the company's exit from the German market.

Wayfair's Q4 2024 revenue grew a meager 0.2% year-over-year, while full-year revenue declined by 1.3%. The company cited ongoing inflationary pressures and uncertain global trade policies as factors impacting consumer spending in the home category. Additionally, Wayfair's decision to exit the German market due to difficulties in scaling up market share and improving unit economics resulted in a 100 basis point drag on revenue for the upcoming first quarter.

Investors were also concerned about Wayfair's rising advertising expenses, which reached a high watermark of 13.7% of net revenue in Q4 2024. The company acknowledged that a significant portion of this advertising spend did not pay back within the quarter, potentially signaling inefficiencies in its marketing efforts.