E-commerce sales accounted for 25% of Express Inc.’s second quarter revenue, up from 19% a year earlier. That’s roughly $123.9 million for the second quarter ended Aug. 4, a 37% jump compared to the previous year.
Total sales for the apparel brand, No. 97 in the Internet Retailer 2018 Top 1000, rose to $493.6 million, a 2.6% rise over the $481.2 million reported in the second quarter of 2017, but comparable sales rose just 1%.
Omnichannel efforts are gaining steam, with about 400 stores shipping e-commerce orders from their inventory, and CEO David Kornberg says the percentage of orders fulfilled from stores is “growing rapidly” but didn’t break out exact figures, according to a transcript of the earnings call from Seeking Alpha.
Tweaks to the algorithms that decide where orders are fulfilled will continue to improve ship-from-store capabilities and he expects ship-from-store to improve margins in the second half of 2018 and into 2019, he said. Shipping and handling costs rose slightly for the quarter due to increased e-commerce sales, according to Perry Pericleous, the retailer’s chief financial officer.
The company added five stores to its test of buy online, pickup in store options, including the addition of self-service lockers to minimize friction in both pickups and returns to those stores. Kornberg says the plan is to roll out the capabilities to select stores over the next 12 months.
Kornberg says that the rise in e-commerce revenue is partially due to being able to ship the most popular products from stores, letting them show up for online purchases while still offering them to in-store shoppers.
In other e-commerce financial news:
- Loot Crate Inc. (No. 200) took in $23 million in a new funding round. The subscription box company, which ships monthly “crates” of toys, books and apparel, has raised $41.5 million to date, according to funding database Crunchbase. The new funding will allow the company to expand its subscription lines into more niche areas; existing subscription options are focused on gaming, sports, comic and pop culture. Atalaya Capital Management led the round.
- American Eagle Outfitters Inc. (No. 64) reported second quarter e-commerce growth in the “mid-teens,” according to CEO Jay Schottenstein in a transcript of the earnings call from Seeking Alpha. Chief financial officer Robert Madore says online sales now make up 24% of total revenue, or $231.6 million. Total revenue rose to $964.9 million for the quarter, or 14.2% growth from $844.6 million during the same quarter last year.
Signet Jewelers Ltd. (No. 102) posted an e-commerce jump of 82.8% year over year for the quarter thanks in part to its acquisition of James Allen. Online-only jewelry business James Allen alone grew revenue 25.3% to $54.4 million. Across the company, online sales accounted for 10.6% of second quarter sales, or $150.5 million, up from 5.9% of all sales during the same period last year.
- Lululemon Athletica Inc. (No 90) posted a 47% year-over-year increase in direct-to-consumer revenue, which includes mobile and online sales, for the second quarter on a constant dollar basis. Excluding the impact of an online warehouse sale, e-commerce rose 65% for the quarter. It is planned a new distribution center in the Toronto region to better address orders from the East Coast. Total revenue rose 25% during the period to $723.5 million.
- Dick’s Sporting Goods Inc. (No. 54) posted a 12% rise in e-commerce sales for the quarter, which now account for 11% of total revenue for the company. That’s up from 9% during the same period last year. E-commerce sales have grown 31% over the last two years. The sporting goods retailer is investing in e-commerce as it plans to open its first dedicated e-commerce fulfillment center in New York during the third quarter of 2019 and planning to open one in the western U.S. later that year. Opening dedicated fulfillment centers for online orders will improve consistency of shipping times and costs over ship-from-store options, but some orders will still be fulfilled from store inventory, according to CEO Ed Stack in an earnings call transcript from Seeking Alpha.
- At Abercrombie & Fitch Co. (No. 69), direct-to-consumer sales, which includes e-commerce revenue, made up 26% of total sales for the quarter and grew 16% to $216.4 million. Earlier this month, Abercrombie rolled out support for Venmo payments through its app to appeal to younger shoppers. Sales rose 8% to $842.4 million.