Even with a billion-dollar valuation, without a strong leader, a company is going to suffer. Will Fab.com be able to get back on track?
Traffic to Fab’s website and mobile apps peaked in November of 2012, according to ComScore, just before Goldberg announced the pivot away from flash sales. In the 10 months that followed unique visitors fell from 5,275,000 to around 1 million in total this September, a drop of roughly 75 percent. The decline in visitors has been mirrored by a slowdown in sales growth. When asked to comment on the sharp dip in traffic, Fab says that it doesn’t share internal numbers, but that the company is more profitable than ever. “That’s a little confusing,” jokes a source familiar with the company’s finances. “Maybe they mean less not profitable?”