Wayfair is set to report its quarterly earnings with an estimated loss of $0.22 per share, marking an 87.1% improvement year-over-year. The company's revenues are expected to be around $3.11 billion, showing a slight increase of 0.4%. Following the announcement, Wayfair's stock experienced an 11.3% rise in pre-market trading, attributed to a narrower-than-expected loss and growth in active customers. This positive shift comes after Wayfair implemented job cuts, which reportedly allowed for more efficient operations. Despite the optimistic stock movement, Wayfair faces challenges, including a soft market and negative year-over-year guidance of -5%, with sales expected to drop from the previous year's $2.77 billion. The company's performance contrasts with some of its peers and the broader retail market, which saw strong sales during the Christmas period, suggesting that Wayfair's issues may be more related to its comparison with the COVID boom rather than current market conditions.