Quarterly earnings season is on, and Digital Commerce 360’s earnings recap has the most important ecommerce takeaways of the week. Several retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America reported this week. Read more earnings coverage here.
Amazon Inc. (No. 1)
Amazon reported sales grew 11% to $134.4 billion in the quarter ended June 30. Online stores, which account for 39.4% of sales, grew just 4.2%. Read the full story here.
Boot Barn Inc. (No. 327)
Boot Barn reported net sales grew 4.9% to $383.7 million in its fiscal first quarter of 2024 ended July 1. Same-store sales decreased 2.9% year over year, and ecommerce same-store sales decreased 10.8% over the same period. Net sales grew due to new stores and higher retail prices, Boot Barn said.
Online sales made up 9.9% of net sales, totaling about $38 million.
“Despite the slowness in ecommerce sales, we are quite pleased with the many achievements we have seen from an omnichannel perspective,” president and CEO Jim Conroy told investors. Boot Barn predicts ecommerce sales will begin growing again in September or October.
Columbia Sportswear Co. (No. 147)
Columbia reported net sales grew 7% in the second quarter ended June 30, reaching $620.9 million. U.S. online sales were “down mid-single-digit percent,” because “the online environment has become more competitive and promotional as consumers seek out value in the marketplace,” CEO Tim Boyle said in an earnings call.
Direct-to-consumer (DTC) sales were up slightly to $660 million for the quarter. They include both online and physical store sales.
Ecommerce was the slowest growing part of the business in the quarter, below expectations, the sports retailer said.
The Container Store Inc. (No. 471)
The Container Store reported consolidated net sales declined 21.1% in its first quarter ended July 1, to $207.1 million. Comparable store sales were down 19.9% over the same period. Online sales fared slightly better, down 15.8% in the first quarter.
Website-generated sales, including curbside pickup, showed a relatively low decline at 10.5% year over year. Those web-generated sales made up a bigger portion of total sales this quarter (24.1%) than in the year-ago period (21.3%).
CVS Health Corp. (No. 95)
CVS reported total revenue grew 10.3% to $88.9 billion in its second quarter ended June 30. The bulk of the growth comes from the health care benefits part of the business, which grew revenue 17.6% to $26.7 billion.
CVS didn’t break out specific information about online sales, but it did note that 5% same-store prescription revenue growth was fueled by growing omnichannel offerings.
Digital Commerce 360 estimates that CVS online sales were about $989,000,000 in 2022, making up about 10% of total sales.
E.l.f. Cosmetics Inc. (No. 951)
Beauty brand E.l.f. Cosmetics reported net sales growth of 76% in its fiscal Q1 ended June 30, to $216.3 million. The retailer noted it was the 18th consecutive quarter of net sales growth and market share gains.
Online sales grew by “triple digits,” the retailer said without revealing more. Digital penetration reached 18%, compared with 14% in 2022. The retailer has “really good strength” in online sales through its own website, Amazon, and other retail beauty websites that carry its products, it said.
Ethan Allen Global Inc. (No. 525)
Ethan Allen reported consolidated net sales declined 18.4% to $187.4 million in the fiscal fourth quarter ended June 30. Retail and wholesale net sales declined at nearly the same rate, 17.2% and 16.7%, respectively. The home furnishing retailer did not share specifics on digital sales.
Hasbro (No. 556)
Hasbro reported revenue declined 10% in its second quarter ended July 2, 2023 to $1.2 billion. Franchise brands, including Peppa Pig, Transformers, and Play-Doh saw smaller revenue declines at 5% than other brands the retailer sells.
Digital sales were a high point for the retailer, with digital gaming revenue up 33%. That section of the business is performing ahead of expectations, Hasbro said.
Petmed Express Inc. (No. 351)
Petmed Express reported net sales for the quarter ended June 30 grew 11.5% to $78.2 million.
The retailer said it also grew new customers 25% year over year. 49% of revenue came from auto-ship subscriptions and memberships, CEO Matt Hulett said in a written statement.
Revolve Group Inc. (No. 87)
Revolve announced net sales declined 6% to $273.7 million in the quarter ended June 30. The apparel retailer also reported that net income declined 55% to $7.3 million due to “the decline in net sales, reduction in gross profit year over year and continued pressure on certain operating expenses.”
The return rate is also higher than expected, Revolve said, leading to higher costs. The retailer did not share specific information on ecommerce sales.
Steve Madden Ltd. (No.260)
Steve Madden reported revenue declined 16.8% to $535 million in the quarter ended June 30. Wholesale revenue declined 20.8%, while DTC revenue was down 5.4% to $128.2 million.
Ecommerce sales outperformed brick and mortar sales, the shoe retailer said in a call with investors.
Wayfair Inc. (No. 10)
Wayfair reported net revenue declined 3.4% to $3.2 billion in its second quarter ended June 30. Losses came in at $46 million, well below investor expectations of $74 million. Read more here.
So what does it mean?
- Omnichannel is still alive and well as a retail strategy, despite predictions that fulfillment methods like curbside pickup and buy online, pick up in store (BOPIS) were pandemic-era trends. Executives at Boot Barn, CVS and The Container Store all called out omnichannel offerings as areas of strength.
- Online competition is impacting nearly everyone. Columbia Sportswear specifically cited a more crowded online marketplace making it more difficult to reach consumers. That’s not as much of a problem for retailers like E.l.f., which has a distinct offering to consumers with its budget products, even in the crowded beauty space.
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