Ecommerce earnings recap: Tapestry and Advance Auto Parts

The latest ecommerce earnings results are out from retailers in Digital Commerce 360’s Top 2000 Database. Both Tapestry and Advance Auto Parts discussed tariffs on their earnings calls as they shared outlooks.

Tapestry, which owns Coach and Kate Spade, reported a 8.3% increase in net sales year over year. Meanwhile, Advance Auto Parts returned to profitability in its fiscal second quarter, even as its net sales fell 7.7% from a year earlier.

Parentheses indicate the merchant’s ranking in the Top 2000, unless otherwise noted. The database ranks North America’s largest ecommerce retailers by their annual web sales.

This week’s ecommerce earnings takeaways

Tapestry net sales grew 8.3% year over year in its most recent quarter as young shoppers made up its largest groups of new customers.
Advance Auto Parts net sales declined 7.7% year over year in its second quarter, even as comparable store sales (which include ecommerce sales) were up slightly and the company recorded a profit for the period.

Tapesty, Inc. (No. 47)

Q4 2025 net sales: Tapesty, Inc. reported net sales increased 8.3% year over year to $1.7 billion in its fiscal fourth quarter ended June 28. As sales grew, the company credited rising direct-to-consumer revenue, which was up 6% year over year in Q4 and 5% for its full 2025 fiscal year.

The retailer, whose brands include Coach, Kate Spade and Stuart Weitzman, recorded 1.5 million new customers in North America in Q4, which it attributed to growing interest from Gen Z and Millennial consumers. Those cohorts made up 60% of Tapestry’s new customers for both the quarter and full fiscal year.

Impact from tariffs on Tapestry: During the company’s earnings call, Scott Roe, the chief financial officer and chief operating officer at Tapestry, noted that the company is “facing greater than previously expected profit headwinds from tariffs and duties with the earlier-than-expected ending of de minimis exemptions being a meaningful factor.”

“In aggregate, the total expected impact on profitability this year from tariffs is $160 million, representing approximately 230 basis points of margin headwind,” Roe stated.

As Tapestry works on mitigation strategies, he said that it is focused on minimizing exposure to tariffs and finding ways to be more efficient.

Advance Auto Parts, Inc. (No. 90)

Q2 2025 net sales: Advance Auto Parts, Inc. recorded a 7.7% net sales decrease to $2.0 billion in its fiscal second quarter ended June 28. Despite the decline, the company also reported that its comparable store sales, which include ecommerce sales fulfilled from stores, were up 0.1% year over year in Q2.

“Our comparable sales performance was fueled by growth in the Pro business, and we are encouraged by the early signs of stabilization in our DIY business,” said Shane O’Kelly, president and CEO at Advance Auto Parts. “Our strategic plan is designed to establish a strong foundation for consistently delivering exceptional customer service, and I am pleased with the progress being made by the team.”

Advane Auto Parts’ Q2 gross profit was $0.9 billion, which O’Kelly called “an important milestone” as the retailer returned to profitability.

Impact from tariffs on Advance Auto Parts: During the retailer’s earnings call, leaders addressed their views on tariffs and economic outlooks from multiple angles. Ryan Grimsland, executive vice president and chief financial officer at Advance Auto Parts, said the company expects “about low to mid-single-digit inflation in the back half of the year,” though he stated that his team is working with “multiple scenarios” in mind.

“But even the changes that have happened, we’re still at a blended rate of roughly 30% on tariff impacts even with the latest changes,” he stated. “Those prices are just starting to make it into the market. So the biggest unknown will be the demand elasticity and how that might play out in the back half of the year.”

Other recent ecommerce earnings results

Alibaba Group Holding Limited

Q4 2025: Alibaba Group Holding Limited recorded a year-over-year revenue increase of 6.6% to $32.6 billion in its fiscal fourth quarter. Revenue at Alibaba’s international B2B ecommerce segment, Alibaba International Digital Commerce Group (AIDC), was up 22% from a year earlier.

Amazon.com, Inc. (No. 3)

Q3 2025: Amazon.com Inc.’s net sales rose 13% year over year to $167.7 billion in its fiscal second quarter ended June 30. North America segment sales grew 11% to $100.1 billion. Excluding foreign exchange effects, total net sales increased 12% year over year.

Crocs, Inc. (No. 94)

Q2 2025: Crocs, Inc. reported revenue of $1.15 billion, up 3.4% from a year ago, for its fiscal Q2 2025 ended June 30. Both its Crocs and Heydude brands notched direct-to-consumer (DTC) gains, with international sales now representing just over half of revenue.

Overall, DTC revenue rose 4% to $584.9 million in Q2, while wholesale sales increased 2.8% to $594.4 million. The company swung to a net loss of $492.3 million from $228.9 million in profit a year earlier.

For the flagship Crocs brand, sales climbed 3.4% to $959.6 million. That included $494.9 million in DTC sales and $464.7 million from wholesale. By region, international sales were the standout, up 18.1% to $502.5 million. North America sales slipped 6.5% to $457.1 million after the brand pulled back on discounting..

“We see the U.S. consumer behaving cautiously around discretionary spending,” Crocs CEO Andrew Rees said on the earnings call. “Against this backdrop, our retail partners are acting more carefully and reducing their open-to-buy dollars in future seasons.”

Looking ahead, tariffs remain a concern. At current rates, the company expects them to cost about $40 million in the second half of 2025 and $90 million annually, according to Susan Healy, chief financial officer at Crocs.

To offset some of the pressure, Crocs plans select price increases in certain styles and markets, Rees said.

“We don’t think this is a market that we can be taking all of our prices up by a certain amount to simply mitigate the tariffs,” he added. “I don’t think that’s realistic given where our brands sell and the very broad base of our consumer base.”

Meanwhile, Heydude revenue reached $189.8 million in fiscal Q2. DTC revenue alone increased 7.6% to $90 million. Elsewhere, wholesale was down 12.4% to $99.8 million. The brand’s outlet stores are helping to extend awareness, Rees noted.

e.l.f. Beauty, Inc. (No. 662)

Q1 2026: E.l.f. Beauty Inc. said net sales rose 9% year over year to $353.7 million in its fiscal Q1 ended June 30. Ecommerce revenue grew nearly 20% and now makes up about one-fifth of the business. On Aug. 1, the brand raised prices by $1 across its assortment to help offset rising U.S. tariffs on goods from China.

“This is only the third price increase we’ve taken in our 21-year history,” CEO Tarang Amin said.

Hims & Hers Health, Inc. (No. 69)

Q2 2025: Hims & Hers reported revenue rose 73% year over year to $544.8 million in its fiscal Q2, which ended June 30. Subscribers grew 31% to more than 2.4 million. The DTC health company maintained full-year guidance of $2.3 billion to $2.4 billion despite ending its partnership with Wegovy maker Novo Nordisk, saying it expects growth in other categories to offset impacts.

Read more on Hims & Hers’ online sales here.

Peloton Interactive, Inc. (No. 49)

Q4 2025: Peloton Interactive, Inc. recorded revenue of $606.9 million in its fiscal Q4 ended June 30, down 5.7% from $643.6 million a year earlier. The results were still above its $571 million to $586 million guidance range. Full-year revenue fell 7.8% to $2.49 billion.

The connected fitness company said it ended the quarter with 2.8 million paid Connected Fitness subscriptions, down 80,000 from Q3, due to seasonally lower hardware sales and higher churn.

Peloton posted net income of $21.6 million, an improvement from a $30.5 million loss last year. The company credited better-than-expected sales and cost cuts for the result. Still, CEO Peter Stern wrote in a shareholder letter that operating expenses “remain too high” and announced a restructuring plan targeting at least $100 million in additional savings by the end of fiscal 2026, on top of a $200 million cut in fiscal 2025. This includes reducing the global workforce by 6%, paring indirect spending, and relocating some work.

“This is not a decision we came to lightly … but we believe it is necessary for the long-term health of our business,” Stern wrote.

CEO Liz Coddington said on Peloton’s earnings call that tariffs could cost the company about $65 million in fiscal 2026.

Stern said Peloton will “adjust prices” to reflect the value it provides and the costs of operating — “including shipping, returns, tariffs and other fees we pay” — signaling potential price increases ahead.

Ralph Lauren Corporation (No. 67)

Q1 2026: Ralph Lauren Corp. said its revenue climbed to $1.72 billion for its fiscal Q1 ended June 28, up 14% year over year. This was led by double-digit gains in Asia and Europe. Global direct-to-consumer (DTC) comparable store sales rose 13%, driven by strength in both brick-and-mortar and digital channels.

In North America, comparable store sales climbed 12%. This included a 19% increase in digital commerce, which chief financial officer Justin Picicci attributed to site enhancements on RalphLauren.com.

Europe revenue grew 16% to $555 million, with comparable store sales up 10%, including an 11% digital commerce gain. Asia revenue surged 21% to $474 million, with comps up 18% and digital commerce soaring 35%.

The results “exceeded the expectations we laid out in May, even as we chose to reinvest back into our marketing, digital and ecosystem initiatives and return cash to our shareholders,” CEO Patrice Louvet said on the earnings call.

He noted that the company added 1.4 million new DTC customers in Q1. It also increased DTC average unit retail by 14%, reflecting higher full-price selling and fewer promotions.

Louvet also said Ralph Lauren is expanding its predictive AI buying program — tested last year in Asia and Europe. As it does, the program will include more core styles in fiscal 2026 to improve size availability, chase best-sellers, and drive sales and inventory efficiency.

On tariffs, Picicci said the U.S. outlook remains fluid but consistent with the announced rates as of Aug. 1, noting the potential for industry-wide price increases in the second half.

“This quarter’s solid performance and our continued momentum give us confidence to raise our full-year outlook, even as we remain cautious on the broader macroeconomic backdrop primarily in the second half of the fiscal year,” he said.

Target Corporation (No. 5)

Q1 2025: Target Corporation said net sales declined 2.8% year over year to $23.8 billion in its fiscal first quarter ended May 3. Despite the overall drop, Q1 online sales were up 4.7% year over year from a year earlier.

Read more on Target’s online sales here.

The Home Depot, Inc. (No. 4)

Q1 2025: The Home Depot, Inc. reported net sales grew 9.4% year over year to $39.8 billion in its fiscal Q1 ended May 4. Billy Bastek, executive vice president of merchandising at The Home Depot, credited the retailer’s Magic Apron generative artificial intelligence (AI) tool as online sales rose 8% over the same period.

Read more on Home Depot’s online sales here.

Shopify, Inc.

Q2 2025: Shopify Inc.’s revenue and gross merchandise volume each grew more than 30% in its fiscal Q2 ended June 30. The ecommerce software provider also launched Shopify Catalog to help AI platforms surface real-time product information from millions of brands. President Harley Finkelstein said Shopify is “ahead of the curve” in social commerce and now sees “agentic commerce” — AI-powered shopping through autonomous software agents — as the next key trend.

Under Armour, Inc. (No. 134)

Q1 2026: Under Armour, Inc. posted $1.13 billion in revenue in its fiscal Q1 ended June 3, down 4% from last year. Direct-to-consumer sales declined 3% to $463 million, with ecommerce falling 12% and making up 31% of direct-to-consumer (DTC) revenue, down from 34% a year ago.

In Q1, wholesale revenue declined 5% to $649.1 million. North American revenue fell 5% to $670.3 million, while international revenue slipped 1% to $466.6 million. The downturn was driven by lower full-price wholesale business and weaker ecommerce performance in both APAC and North America.

CEO Kevin Plank said the brand is undergoing a “bold transformation.” He expects Under Armour to sharpen its focus where “sports credibility, innovation, and style meet operational discipline.” On the earnings call, he described it as “reinvention and rebuilding,” with steps like cutting SKUs by 25% and materials by 30% in 2025, with further reductions planned in 2026 to lower cost and improve sourcing.

The company is also moving away from discount-driven selling toward premium, athlete-centered storytelling in its DTC channels, he said.

Digital transformation is another pillar. Plank said AI is now integrated across design, planning, and forecasting, with more than 80 automations streamlining workflows. He also pointed to an 18-point year-over-year increase in Under Armour’s ecommerce net promoter score to nearly 70.

Traffic and sell-through still have room to grow, he said. As they do, Under Armour is tackling that “faster site performance, richer storytelling and smarter merchandising,” he assessed.

Tariffs, however, are weighing heavily on profitability. Plank said U.S. tariffs announced July 31 will add about $100 million in costs this year. Combined with softer demand, this will reduce fiscal 2026 operating income to roughly half of last year’s level.

Chief financial officer Dave Bergman said tariffs will also create a 200-basis-point gross margin headwind. Most mitigation efforts, including cost-sharing with suppliers, alternative sourcing, and selective price adjustments, are not expected to take full effect until fiscal 2027, he said.

For Q2, Under Armour expects revenue to decline 6% to 7% year over year. Bergman noted the company “won’t make money in the U.S. this year” given the added tariff costs.

Walmart, Inc. (No. 2)

Q1 2026: Walmart, Inc.’s total revenue increased 2.5% year over year to $165.6 billion in its fiscal first quarter ended April 30. Online sales became profitable for the retailer in the quarter. Q1 also marked the seventh time in 10 quarters that Walmart online sales grew more than 20% year over year.

Warby Parker, Inc. (No. 351)

Q2 2025: Warby Parker Inc. saw revenue of $214.5 million for its fiscal Q2 ended June 30, up 13.9% year over year. Retail sales grew 19.3% with store count up 16.4%, while ecommerce revenue inched up 2%, according to chief financial officer Steve Miller.

Active customers increased 9% to 2.60 million, marking the eighth straight quarter of accelerating growth. Average revenue per customer rose 4.6% to $31, the eyewear company said.

AI is becoming a central part of Warby Parker’s strategy. Co-CEO David Gilboa said the company’s new long-term partnership with Google aims to develop AI-powered smart glasses. He called it “a transformative step for our brand” that could expand the market well beyond traditional eyewear. Miller added that smart glasses adoption could surge once consumers can use them not just for photos and audio, but as their primary way of interacting with AI.

On the digital commerce side, co-CEO Neil Blumenthal said the company launched Advisor. Advisor is an AI-driven recommendation tool in its app designed to replicate the guided retail experience online. Early results are promising, and the tool will play “a meaningful role in driving product discovery and conversion,” he said.

Warby Parker will also sunset its long-running home try-on program by year-end in favor of a virtual try-on feature. The tool uses AI to recommend frames based on face shape, style preferences, and materials, Blumenthal noted.

Tariffs remain a factor, but Miller said the gross impact has moderated thanks to mitigation measures. These include shifting the supplier mix, selective price increases, and controlling expenses. Blumenthal added that price changes were limited to certain lens types and add-ons, with minimal impact on conversion, while preserving the entry-level $95 price point. Miller said the company expects China to represent a low-teens percentage of cost of goods sold by year-end.

Wayfair, Inc. (No. 10)

Q2 2025: Wayfair Inc. saw revenue climb 6% year over year to $3.27 billion in its fiscal Q2 ended June 30, marking its third straight quarter of growth. U.S. revenue grew 5% and international sales rose 3%. Average order value also rose to $328 from $313 a year earlier. CEO Niraj Shah said Wayfair’s inventory-light marketplace model and broad supplier network help it offer strong value despite tariff uncertainty.

Read more on Wayfair’s online sales here.

Yeti Holdings, Inc. (No. 126)

Q2 2025: Yeti Holdings Inc. reported net sales of $445.9 million for the fiscal Q2 ended June 28, down 4% year over year. This came amid a more promotional drinkware market, cautious consumer spending, and supply chain transition-related inventory constraints, the company said.

Direct-to-consumer (DTC) sales slipped 1% to $248.6 million, while wholesale revenue fell 7% to $197.3 million. U.S. sales decreased 5% to $367.8 million. However, international revenue rose 2% to $78.1 million. That was fueled by strong growth in Europe and the launch of the brand in Japan.

“Our brand continues to grow, resonating with audiences, both at home and around the world,” CEO Matt Reintjes said on the earnings call. “At the same time, we’re executing a major transformation in our supply chain that is setting us up extremely well for 2026 and beyond.”

On the DTC side, performance on Amazon remained strong, yeti.com traffic increased, and engagement with new product launches was high, he said. However, online conversion rates came in below expectations, offsetting gains from higher traffic and average order value.

The company is on track to exceed its target of 30 new product launches this year, he said. In August, Yeti will launch a strategic partnership with Fanatics to sell team-color drinkware and hard coolers for all 32 NFL teams. In addition, it will offer options from select MLB, NHL, and NCAA programs, across Yeti’s own channels and Fanatics platforms.

On tariffs, Reintjes said Yeti is diversifying its supplier base. He noted that by year-end, less than 5% of its cost of goods sold will be exposed to U.S. tariffs on goods from China.

Chief financial officer Michael McMullen said Q2 tariff costs were lower than expected. Current guidance assumes those rates will hold through year-end, with China at 30% and other sourcing regions around 20%. This would result in a total net tariff cost of about $40 million.

Ecommerce earnings calendar

Here’s when other ecommerce earnings are scheduled to report this quarter:

Home Depot: Aug. 19
La-Z-Boy: Aug. 19
Estee Lauder: Aug. 20
Lowe’s: Aug. 20
TJX: Aug. 20
Target: Aug. 20
Walmart: Aug. 21
Buckle: Aug. 22

Do you rank in our databases?

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

Favorite

Ecommerce earnings recap: What you missed from Tapestry and Advance Auto Parts