Plus, J.C. Penney improves online margins, Canada Goose increases store sales, The RealReal reports for the first time, retail is profitable at JD.com and Alibaba's merchandise values increase 34%.

Macy’s Inc. reported its 40th consecutive quarter of double-digit ecommerce growth for its fiscal second quarter ending Aug. 3, but it didn’t disclose exact figures. Sales made in mobile apps is its fastest-growing sales channel, according to CEO Jeff Gennette in a call with investors transcribed by Seeking Alpha.

“No surprise mobile is our fastest-growing channel,” he said in the call. The retailer generated roughly $1.00 billion in sales in 2018 from mobile and expects it to grow 50% in 2019 to reach $1.50 billion, Gennette said.

Another factor boosting ecommerce sales is its “vendor direct” program, revamped last year, which lets brands drop ship orders directly to customers who purchase on Macy’s ecommerce site. The program now accounts for 10% of online sales and has nearly doubled the number of products available through the retailer during this year.

Vendor direct sales were also growing faster than ecommerce as a whole, Gennette says, but no exact figures were disclosed.

Overall, Macy’s revenue fell 0.5% for the quarter to $5.54 billion from $5.57 billion the prior year. Macy’s plans on updating 150 stores with new fixtures, product assortment and an updated customer service area by the end of the year. It expects 50% of its bricks-and-mortar sales to come from those refurbished locations. Macy’s operates 680 stores across Bloomingdale’s and its namesake brand.

advertisement

Macy’s is No. 5 in the Internet Retailer 2019 Top 1000.

In other earnings news:

  • Department store chain J.C. Penney Co. Inc. (No. 40) improved increased its online sales profit margin during its second fiscal quarter ending Aug. 3, according to a release from the retailer. The retailer updated 500 stores this year to centralized its in-store pickup and return area. J.C. Penney also reduced its total inventory by 12.5% in the latest quarter and reduced its markdowns. The retailer reported a 9.1% drop in total sales to $2.51 billion from $2.76 billion during the comparable period last year. J.C. Penney didn’t disclose exact ecommerce figures.
  • Outdoor apparel brand Canada Goose (No. 201) reported that direct-to-consumer revenue rose 50.0% in its first quarter ending June 30 to $34.8 million from $23.2 million the prior year. Five new stores opening drove the increase, according to its filing. A new ecommerce store for Chinese shoppers also helped drive direct-to-consumer sales, the consumer brand manufacturer reported. Overall revenue increased 59.1% to $71.1 million, up from $44.7 million a year ago.
  • Luxury ecommerce consignment shop The RealReal Inc. (No. 182), reported a 51.1% increase in revenue in its second quarter ending June 30, rising to $71.0 million from $47.0 million during the same period a year ago. Gross merchandise sales, or the value of goods sold through its platform, increased 40.2% to $228.5 million from $163.0 million. The company is automating its pricing operations, noting that 52% of products priced automatically at the end of Q2. It expects 60% of products to be priced automatically by the end of the third quarter, and automation to expand to product descriptions and photo retouching as well.
  • Chinese ecommerce retailer JD.com, No. 1 in the Internet Retailer Asia 450, reported a 20.4% rise in retail revenue for the first half of the year through June 30. Retail sales reached 260.49 billion yuan ($37.03 billion), up from 216.43 billion yuan ($30.77 billion) a year earlier. The retail sector was also profitable, bringing in 7.23 billion yuan ($1.03 billion) and leading to an overall profitable quarter for the Chinese retail giant. Total profit grew to 3.49 billion yuan ($496.2 million) from a loss of 1.03 billion yuan ($146.4 million) a year earlier.
  • Revenue at retail conglomerate Alibaba Holdings Group rose 42.1% to 114.92 billion yuan ($16.34 billion) in its fiscal first quarter ended June 30 from 80.92 billion yuan ($11.50 billion) last year. Gross merchandise sales increased 34% over the same period last year, but exact figures were not disclosed. Alibaba owns and operates Taobao and Tmall, which hold the No. 1 and No. 2 spots in the ranking for Internet Retailer Online Marketplaces.
Favorite