RBC Capital analysts provided their outlook on Wayfair Inc. (NYSE:W) ahead of the company’s Q1 results, lowering their quarterly net sales estimate to $2.96 billion from $3.10 billion and their adjusted EBITDA estimate to -$77 million from -$68 million.

The analysts’ revised sales estimate represents a 15% year-over-year decline, which as a reminder compares to management’s comments that consolidated gross revenues were trending down low-teens quarter-to-date through Feb 24.

The analysts believe the company has one of the more challenging setups as it both operates in more discretionary categories and is low/no profit. Regardless of results, the analysts believe it will be difficult for management to message conviction on 2022 numbers with so much uncertainty around the supply chain, cost inflation, and the financial health of the US consumer.