This week, more retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America reported ecommerce earnings results for the most recent financial quarter. Here’s the ecommerce earnings summary you need to know from this week. Read more earnings coverage here.
Grove Collaborative (No. 281)
Grove Collaborative announced net revenue declined 16.6% to $66.1 million in its fiscal second quarter ended June 30. The retailer, which sells home and cleaning products, attributed the revenue decline to lower ad spending in 2023 as part of a focus on profitability.
Total direct-to-consumer orders also declined in the quarter, to 974,000 from 1.3 million in the year-ago period. However, revenue per order grew to $65 from $58 per order.
Grove Collaborative also announced Amazon and Shopbop alum Jeff Yurcisin will take over as CEO.
The Home Depot Inc. (No. 4)
Home Depot reported sales declined 2% to $42.9 billion in its fiscal second quarter ended July 30. Digital sales, meanwhile, grew 1% over the period.
“We know the vast majority of our customers engage with us in an interconnected manner. Whether it be through project inspiration and research, transacting, fulfillment or support, our customers blend the physical and digital world,” Billy Bastek, executive vice president of merchandising, told investors in a call.
Just under half of online orders were fulfilled through stores, he said. Sales on items for small projects outpaced big-ticket items, and Pro sales also outpaced DIY sales, Home Depot said.
Tapestry (No. 45)
Tapestry reported revenue declined 8% in North America in its fourth quarter ended July 1. Direct-to-consumer sales grew 3% year over year. Online sales represented about 30% of revenue in the quarter, Tapestry said, triple pre-pandemic levels. Online sales were down slightly year over year, though, the retailer said.
Target Corp (No. 5)
Target announced that digital sales declined 10.5% year over year in the fiscal second quarter ended July 29. The retailer’s Drive-Up service led online sales, Target says.
Meanwhile, comparable in-store sales declined 4.3% versus Q2 last year. Target’s total revenue in Q2 reached $24.8 billion. That’s down 4.9% year over year. Operating profit after taxes was $3.89 billion, down from $4.63 billion in the year-ago period. Read more here.
TJX Cos. Inc. (No. 70)
TJX reported net sales grew 8% year over year to $12.8 billion in the second quarter of its fiscal 2024. Comparable store sales also grew 6% in the period, “well above the company’s plan, and entirely driven by customer traffic,” the retailer said in a statement.
TJX owns Home Goods, T.J. Maxx, Marshalls, Sierra, Winners, and Homesense.
Overall, ecommerce remains a “very small percentage” of total business, the retailer told investors in a call. Digital Commerce 360 research estimates that ecommerce made up about 10% of total TJX sales in 2022, growing 4.8% year over year.
Walmart (No. 2)
Walmart announced that U.S. online sales grew 24% for its fiscal second quarter ended July 28. International ecommerce sales grew 26%. Ecommerce sales were fueled by pickup and delivery orders.
Over the same period, comparable in-store sales grew more modestly, up 6.4%, excluding fuel. Total revenue grew, too, by 5.7% to $161.6 billion. Read more here.
So what does it mean?
- Consumers are trading down to less expensive items and focusing on essentials, leading to less discretionary spending. That’s excellent news for Walmart and TJX, where consumers turn for deals and discounts. It’s not so promising for Target and Home Depot, where consumer reluctance to spend on discretionary items and home improvement products translates to slowing sales.
- Pickup and delivery services can give significant boosts to online sales. Both Walmart and Target credited the omnichannel services as the backbone of their digital sales.
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