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 ecommerce earnings coverage here.

Academy Sports & Outdoors Inc. (No. 136)

Academy Sports and Outdoors reported net sales declined 6.2% in the second quarter ended July 29, 2023. The retailer did not share specific information on online sales, but it says it is working to expand omnichannel capabilities.

Best Buy Co. Inc. (No. 7)

Best Buy reported ecommerce earnings this week. Online sales declined 7.1% in the second quarter ended July 29, 2023. 

Online sales made up 31.0% of total revenue, staying flat with the previous year. Total domestic revenue also declined 7.1% to $8.89 billion. The decline can largely be attributed to a 6.3% decline in comparable sales. Read more here.

Big Lots (No. 252)

Big Lots reported net sales declined 15.4% to $1.14 billion in the second quarter ended July 29, 2023.

“Our results for Q2 illustrate that we remain in a very challenging environment, in which our core lower-income customer remains under significant pressure and has limited capacity for higher-ticket discretionary purchases,” CEO Bruce Thorn said in a written statement.

Big Lots did not share specific online sales data. The retailer said it focused on creating a “curated experience, better site navigation and eliminating friction” for online customers in the quarter. 

Chewy Inc. (No. 13)

Chewy reported net sales grew 14.3% to $2.78 billion in the second quarter ended July 30, 2023. Autoship orders remained significant at the online pet retailer, accounting for 76% of net sales and growing faster than overall sales.

Chewy Health also grew to penetration among 20% of Chewy customers. Consumers required more “nudging” to spend than in previous quarters, the retailer said, but non-discretionary categories like food and health remain strong. 

Chico’s FAS Inc. (No. 108)

Chico’s reported net sales declined 3.0% to $545 million in the second quarter ended July 20, 2023. Online sales made up 41% of net sales, which was flat with Q1 of 2023.

“For all three brands, full-priced sales remained healthy, we attracted new customers, and we gained market share,” CEO Molly Langenstein said in a written statement. Chico’s improved website experience and grew online conversion rates, the retailer said. 

Five Below (No. 580)

Five Below reported net sales grew 13.5% to $759.0 million in the second quarter ended July 29, 2023. The discount retailer said online sales remain a “low single digit” portion of the total business.

“With every seasonal change, we get it up online first and it helps us prepare and set up the stores,” CEO Joel Anderson told investors about the value of digital sales for Five Below. 

Dollar General Corp. (No. 753)

Dollar General reported net sales grew 3.9% to $9.8 billion in the second quarter ended Aug. 4, 2023. Same-store sales declined 0.1%, and operating profit declined 24.2% to $693.2 million.

Customer traffic declined, while average transaction amount grew. Dollar General didn’t share specific online sales data, but it said online active monthly users grew 20%.

Joann Inc. (No. 307)

Joann reported online sales grew 3.0% in the second quarter ended July 29, 2023. Online sales accounted for 12.1% of revenue in the quarter.

Meanwhile, net sales declined 2.1% to $453.8 million, and comparable sales declined 2.0%. Online sales outpaced in-store sales growth due to expanded online offerings, technology improvements and increased traffic to Joann’s website and mobile app. 

Land’s End Inc. (No. 79)

Land’s End reported global ecommerce sales declined 8.7% to $218.7 million in the second quarter ended July 28, 2023. U.S. ecommerce sales decreased 3.6% over the same period due to promotions and discount pricing. Net revenue declined 7.9% to $323.3 million.

The retailer also described efforts to incorporate AI into the business. Land’s End recently launched an app for merchants and designers using ChatGPT to “analyze our customer data to identify gaps in our assortment to improve buying decisions,” it said.

Lululemon Athletica Inc. (No. 27)

Lululemon reported online comparable sales grew 17% in the second quarter ended July 30, 2023. In-store comparable sales grew 9%, and total revenue grew 18%.

Lululemon online sales made up 40% of total revenue, at $894 million. Online traffic also grew 20% in the quarter, Lululemon said.

Signet Jewelers Ltd. (No. 60)

Signet Jewelers reported total sales declined 1.9% to $1.8 billion in the second quarter ended July 30, 2023. That’s up 29% over Q2 of 2020, the retailer said.

Same-store sales, including brick-and-mortar and ecommerce sales, declined 8.2%. The retailer did not share specific online sales figures for its online-only brands James Allen and Blue Nile. Signet says it expects consumers to delay more spending than usual to Black Friday because of inflationary pressures.

Vera Bradley Retail Stores LLC (No. 276)

Vera Bradley reported net revenue declined “modestly” to $128.2 million in the second quarter ended July 29, 2023. The Vera Bradley brand’s revenue declined 1.2% in the period, primarily due to store closures. Pura Vida brand sales declined 3.6% due to a decline in wholesale customers, the retailer said. Vera Bradley plans to implement a “strong focus on driving ecommerce growth,” after online sales moderately declined in the quarter, it said without revealing more.

Victoria’s Secret & Co. (No. 52)

Victoria’s Secret reported total sales declined 6% in the second quarter ended July 29, 2023. The sales environment was “particularly challenging” for the digital intimates market in North America, the retailer said in a statement.

Traffic and average basket size declined both in stores and online during the quarter. Conversion rates and average unit retail are below where they were a year ago, but they remain elevated over 2019 levels, the retailer said.

1-800-Flowers.com Inc. (No. 47)

1-800-Flowers reported total revenue declined 17.9% to $398.8 million in the fourth quarter ended July 2, 2023. Net loss for the quarter equaled $22.5 million. Like many other retailers, 1-800-Flowers cited the impact of decreasing consumer spending on non-essential goods.

“As consumers were challenged by ongoing inflationary pressures, escalating interest rates and higher credit card debt, they reduced their discretionary spending,” William Shea, chief financial officer, told investors.

Lower-priced products saw the largest decline, Shea said.

So what does it mean?

• This week’s ecommerce earnings show that consumers remain reluctant to spend on non-essential goods. Discount retailers like Dollar General and Five Below are reaping the rewards of these pressures on consumers.
• Not every discount retailer automatically benefits from consumers trading down, though. Big Lots shows that simply having low prices isn’t enough to win in 2023.

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