Statistics sends strong signal to market: Sales stability creates long-run success, not just sales

It was a bittersweet triumph. Their model had been validated in the real world. Share prices of Wayfair—which had billed itself as “the Amazon of furniture”—had fallen 23 percent over one day after the company announced a fourth-quarter loss. Wayfair’s model was broken—and Daniel McCarthy’s model, created with Wharton marketing professor Pete Fader, identified the…