Wayfair’s stock plummeted 5.04% in pre-market trading after the furniture retailer reported a mixed second quarter, swinging to a net loss and revealing declining international sales, despite adjusted earnings that beat analyst expectations.

The company posted a net loss of $1 million, or 1 cent per share, compared to a profit of $15 million, or 11 cents per share, a year earlier. While adjusted per-share earnings of 95 cents exceeded the consensus estimate of 90 cents, and revenue rose 7.5% to $3.52 billion, the bottom-line loss and a 1% drop in international revenue likely dampened investor sentiment. U.S. sales grew 9%, but orders and active customers also showed signs of momentum.

CEO Niraj Shah emphasized ramping growth in the Wayfair business and strong free cash flow, but the market focused on the profitability swing and international headwinds, driving the sharp pre-market decline.