Wayfair Inc . (NYSE:W) has announced the dismissal of Ernst & Young LLP (EY) as its independent registered public accounting firm and the appointment of PricewaterhouseCoopers LLP (PwC) as its new auditor. The change was approved by the company's Audit Committee on Monday and will take effect following the completion of EY's audit of Wayfair's 2024 financial statements.
According to the 8-K filing with the Securities and Exchange Commission, EY's audit reports for the fiscal years 2023 and 2022 did not contain any adverse opinion or disclaimer, nor were they qualified or modified regarding uncertainties, audit scope, or accounting principles. Additionally, there were no disagreements or reportable events between Wayfair and EY during those fiscal years and the subsequent interim period through January 28, 2025.
The transition to PwC is subject to the completion of PwC's standard client acceptance process and will be effective immediately after EY's audit for the fiscal year ended December 31, 2024. The company's decision to appoint PwC aligns with the authority granted to the Audit Committee under its charter. With revenue of $11.84 billion in the last twelve months and analysts forecasting profitability this year, this transition comes at a crucial time for Wayfair.
Wayfair confirmed that during the fiscal years 2023 and 2022, and the interim period up to the decision date, there were no consultations with PwC regarding the application of accounting principles to any transaction, audit opinions on financial statements, or any matter that was the subject of disagreement or a reportable event.
The filing included a letter from EY, dated today, confirming their agreement with the statements made by Wayfair. This corporate action is part of Wayfair's ongoing efforts to manage its financial reporting and auditing processes.
With its next earnings report due on February 20, investors seeking detailed analysis can access comprehensive financial metrics and expert insights through InvestingPro's in-depth research reports, which cover over 1,400 US stocks including Wayfair.
In other recent news, Wayfair has seen significant developments in its business operations. The online home goods company announced its decision to exit the German market, a strategic move impacting around 730 jobs and resulting in charges between $102 million and $111 million. This restructuring is part of Wayfair's plan to redirect cost savings into its core domestic operations.
Several analysts have updated their ratings on Wayfair. Piper Sandler reaffirmed its Overweight rating, emphasizing potential for revenue growth in the fourth quarter and first quarter of 2025. Mizuho (NYSE:MFG) Securities maintained an Outperform rating, while BofA Securities increased its price target to $51, maintaining a Neutral rating. Loop Capital also raised Wayfair's share price target from $50 to $55, maintaining a hold rating.
This recent news reflects significant changes in Wayfair's business operations and the analysts' perspectives on the company's financial health. These developments could impact investor decisions moving forward. As always, it is crucial for investors to conduct their own research and consult with a financial advisor before making any investment decisions.
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