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 fiscal quarter. Here’s the ecommerce earnings summary you need to know from this week. Read more earnings coverage here.
Abercrombie & Fitch Co. (No. 59)
Abercrombie & Fitch reported net sales grew 16% in the fiscal second quarter ended July 29, 2023, to $935 million. Comparable sales grew 13%. Sales were split between Abercrombie brand and Hollister, at $462.7 million and $472.6 million, respectively. Abercrombie brand sales grew 26% year over year, and Hollister grew 8%. About one-third of Hollister sales happen online, the retailer said, with traffic and conversion both increasing year over year.
Abercrombie is “more tilted toward digital” than Hollister, the retailer said without disclosing more. Online sales have a higher operating margin than in-store sales, it said.
Bath & Body Works Inc. (No. 56)
Bath & Body Works reported net sales declined 3.6% to $1.56 billion in the fiscal second quarter ended July 29, 2023. The retailer did not share how overall online sales compared to previous quarters.
Bath & Body Works rolled out BOPIS in Q1 2023, and adoption grew 25% in Q2. About 30% of BOPIS customers also made an additional purchase when pickup up their orders, the retailer said.
“Delivering a seamless omnichannel experience will allow us to convert more single channel customers to dual channel customers, which, on average, increase spend threefold,” CEO Gina Boswell told investors.
BJ’s Wholesale Club (No. 68)
BJ’s reported that digitally enabled comparable sales grew 15% in the fiscal second quarter ended July 29, 2023. Comparable sales, meanwhile, grew 1.1% over the same period. Net sales declined 2.9%.
Online sales made up 10% of net sales in the quarter, BJ’s said. BOPIS and curbside orders were responsible for the majority of online growth, CEO Bob Eddy told investors.
“Our digitally enabled members are more loyal, as indicated by higher spending and renewal rates,” Eddy said.
Dick’s Sporting Goods (No. 32)
Dick’s Sporting Goods reported comparable sales grew 1.8% in the fiscal second quarter ended July 29, 2023. Transactions grew 2.8% during that period, and net sales grew 3.6%. The sports retailer did not share any information about how online sales fared in comparison to past quarters.
“In combination with our stores, our digital experience remains an integral part of our success, and we continue to invest in technology to strengthen our athletes’ omnichannel experience,” CEO Lauren Hobart said.
Dick’s also expanded omnichannel offerings in the quarter to add same-day delivery, Hobart said.
Dollar Tree Inc. (No. 190)
Dollar Tree reported net sales grew 8.2% to $7.3 billion in the fiscal second quarter ended July 29, 2023. Same-store comparable sales increased 7.8% and 5.8% at Dollar Tree and Family Dollar, respectively. Both stores also saw increases in traffic during the quarter, though average ticket declined at Dollar Tree and grew at Family Dollar.
Sales of discretionary items increased slightly at Dollar Tree, by 3.9%, as consumers trade down to dollar stores. Consumables saw the largest increase, with sales growing 11%.
Foot Locker Inc. (No. 51)
Foot Locker reported total sales declined 9.9% in the fiscal second quarter ended July 29, 2023. Comparable same-store sales declined 9.4% over the same period.
Online sales accounted for 15.5% of total sales in the quarter, down slightly from 16.3% in Q1.
“Digital comps in our Foot Locker and Kids Foot Locker banners in North America were actually up during the quarter, with strength driven by increases in multiple conversions and new customer growth year over year,” the retailer said.
The Gap Inc. (No. 20)
Gap reported net sales declined 8% to $3.55 billion in the fiscal second quarter ended July 29, 2023. Online sales made up 33% of net sales.
Comparable sales declined 6%, and in-store sales decreased 7%. Online sales saw a larger decrease, down 11% year over year.
Old Navy in particular is experiencing decreased demand from lower-income consumers, Gap said in a press release. The brand is not benefitting from consumers trading down from more expensive retailers, according to Katherine O’Connell, chief financial officer.
Guess Inc. (No. 179)
Guess reported revenue increased 3% to $665 million in the fiscal second quarter ended July 29, 2023. Revenue in the Americas, including ecommerce, declined 6% while Europe and Asia revenue grew 9% and 19%, respectively.
The retailer did not reveal specifics about online sales, but it did say North American ecommerce performed better than store sales.
Kohl’s Corp. (No. 23)
Kohl’s reported net sales declined 4.8% to $3.7 billion in the fiscal second quarter ended July 29, 2023. Comparable sales declined 5.0%.
Online sales declined further, down 17% year over year to make up 25% of total sales. The decline can be attributed to Kohl’s eliminating online-only deals, the retailer said.
La-Z-Boy Inc. (No. 257)
La-Z-Boy reported total sales declined 20% to $482 million in its fiscal first quarter of 2024. Same-store sales grew 2%. Online sales of ecommerce furniture brand Joybird declined 17% year over year due to “more cautious online consumer demand,” the retailer said.
“In general, furniture consumers sort of hit that saturation point of who’s going to want to purchase online and who’s going to want to purchase in-store. And the majority of consumers do more in-store,” CEO Melinda Whittington said, according to a Seeking Alpha transcript.
Lowe’s Cos. Inc. (No. 12)
Lowe’s reported online sales grew 6.9% for the fiscal second quarter ended Aug. 4.
Lowe’s reported $25 billion in total sales for the quarter, declining 8.9% from $27.5 billion in 2022. Net earnings also declined, to $2.7 billion from $3 billion. Comparable sales also decreased 1.6% year over year, Lowe’s said. Read more here.
Macy’s Inc. (No. 17)
Macy’s reported online sales declined 10% in the fiscal second quarter ended July 29, 2023. Net sales declined 8% during the period to $5.13 billion. Brick-and-mortar store sales also declined 8% over the year-ago period.
Nordstrom Inc. (No. 21)
Nordstrom reported net sales declined 8.3% in the second quarter ended July 29, 2023. Online sales declined 12.9%, making up 36% of total sales in the quarter.
Online sales also accounted for 60% of sales during the annual Anniversary Sale, Nordstrom said. 40% of those sales were either through BOPIS, ship to store or fulfilled by stores, the retailer said.
Petco Health and Wellness Company Inc. (No. 92)
Petco reported net revenue grew 3.4% to $1.53 billion in the fiscal second quarter ended July 29, 2023. Comparable sales grew 3.2%.
Online sales grew faster than in-store sales; they increased 9% and 2%, respectively. Consumable sales grew 7%, while the more discretionary supplies category declined 9%.
Urban Outfitters Inc. (No. 30)
Urban Outfitters reported net sales for the fiscal second quarter ended July 31, 2023, grew 7.5% to $1.27 billion.
Digital sales showed “mid-single-digit positive growth,” the retailer said in a statement. Anthropologie, Free People and FP Movement brands all had double-digits sales growth online. The Urban Outfitters brand recorded a double-digit sales decrease online.
Ulta Beauty (No. 46)
Ulta reported net sales increased 10.1% to $2.5 billion in the fiscal second quarter ended July 29, 2023. Comparable sales, which includes stores open at least 14 months and online sales, grew 8%. The Ulta app continued to drive sales, with 55% of online sales made on mobile.
The retailer is also focused on growing its omnichannel customers, who purchased 2.5 to three times more than single-channel customers.
Williams-Sonoma Inc. (No. 22)
Williams-Sonoma reported comparable brand revenue declined 11.9% in the fiscal second quarter ended July 31, 2023. Revenue was flat over the comparable 2021 period, the retailer said.
Online sales make up about 66% of total sales, and Williams-Sonoma anticipates online sales eventually making up 70%.
So what does it mean?
- Consumers remain reluctant to spend discretionary income on goods, preferring to save or spend on experiences instead. That’s hitting apparel retailers particularly hard, while Dollar Tree is reaping the rewards.
- La-Z-Boy CEO Melinda Whittington’s comment that online furniture may have hit a saturation point with retailers might be telling. Wayfair Inc. and Overstock.com Inc. both recently reported declining sales.
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