Ecommerce earnings recap: Alphabet, Estée Lauder and more

The latest ecommerce earnings results are out from retailers in Digital Commerce 360’s Top 2000 Database.

Alphabet Inc. posted its first-ever $100 billion quarter, with revenue up 16% year over year. Those results were supported by AI-powered search and shopping tools. The Estée Lauder Companies reported a 3.6% rise in net sales for its fiscal first quarter. That increase was built on last quarter’s double-digit online growth and announcing new partnerships with Amazon, TikTok Shop and Shopify.

Meanwhile, United Parcel Service (UPS) reported a 3.6% year-over-year decline in revenue to $21.4 billion. Both tariffs and lower shipping volumes weighed on its results.

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

Alphabet crossed the $100 billion mark, as its AI initiatives — including new “agentic” commerce capabilities — continued to expand.
Estée Lauder built on its double-digit online growth last quarter, expanding digital reach new Amazon, TikTok Shop and Shopify partnerships.

Alphabet, Inc. (No. 76)

Q3 2025 sales: Alphabet Inc. reported $102.3 billion in fiscal Q3 revenue, up 16% year over year and surpassing $100 billion for the first time.

“This was a terrific quarter for Alphabet, driven by double-digit growth across every major part of our business,” said Sundar Pichai, CEO at Alphabet, on the company’s earnings call. “We’re seeing AI now driving real business results across the company.”

Google Services — including Search and YouTube ads — generated $87.1 billion in revenue, up 14% year over year. Google Cloud climbed 34% to $15.2 billion, fueled by strong AI demand.

AI momentum: Pichai noted that Google’s full-stack AI strategy is paying off, citing the Gemini family of AI models as a key growth driver. Its Gemini app now has more than 650 million monthly active users, he said. Google’s next flagship model, Gemini 3, is expected later this year.

AI in Google Search is driving an expansionary moment, Pichai said. “AI Mode” within Search now has more than 75 million daily active users in the U.S., with query volume doubling quarter over quarter.

On the ecommerce front, Pichai pointed to new AI shopping experiences, including an updated virtual-try-on tool.

“We recently added shopping capabilities in AI Mode, which now help people shop conversationally in Search,” Pichai said. “And we expanded try-on capabilities to more clothing items, now available to anyone in the U.S.”

Executives cited a growing focus on “agentic” AI experiences that can perform actions on a user’s behalf. Alphabet is developing “agentic experiences across key verticals such as travel, commerce, shopping and so on,” Schindler said. Alphabet recently introduced agentic checkout and partnered with PayPal to help merchants build agentic commerce experiences. In addition, it is supporting new open protocols for agent-to-agent transactions, he said.

Amazon.com, Inc. (No. 1)

Q3 2025 net sales: Amazon.com Inc.’s net sales rose 13% year over year to $180.2 billion in its fiscal third quarter ended Sept. 30. North America segment sales grew 11% to $106.3 billion, while AWS climbed 20% to $33 billion. Excluding foreign exchange effects, total net sales increased 12% year over year.

Apple, Inc. (No. 3)

Q4 2025 sales: Apple Inc. said its fiscal fourth-quarter revenue rose 8% year over year to $102.5 billion, marking a September-quarter record for the company. CEO Tim Cook said the results capped “an extraordinary year.” The year saw Apple reach an all-time annual revenue high of $416.2 billion in fiscal 2025.

“We set all-time revenue records in emerging and developed markets,” Cook told investors on the earnings call. “We set an all-time revenue record for iPhone. And in services, we achieved all-time records across every geographic segment.”

Tariff impact on Apple: Cook said Apple estimates tariffs to increase costs by $1.1 billion in fiscal Q4, rising to $1.4 billion in the Q1 holiday quarter.

“It assumes a stable kind of environment for the quarter,” Cook said. “It does comprehend the change that was just made, which we’re very encouraged to see, with the tariffs moving from 20% to 10% in China. And so that is factored in.”

Meanwhile, chief financial officer Kevan Parekh detailed Apple’s holiday-quarter outlook. Apple expects December-quarter revenue to grow 10% to 12% year over year, marking its best quarter ever. He said iPhone revenue should rise by double digits, also a record, with gross margin between 47% and 48%, including the $1.4 billion in tariff-related costs.

“And as we’ve said before, we are significantly increasing our investments in AI, while continuing to invest in our product road map,” he said.

Bed Bath & Beyond, Inc. (No. 71)

Q3 2025: Q3 2025 sales: Bed Bath & Beyond Inc. recorded net revenue of $257.2 million for the fiscal third quarter ended Sept. 30, down 17.4% year over year. Excluding the impact of its exit from Canada, revenue decreased 13.2%. Net loss narrowed to $4.5 million, a 93% improvement from the prior year.

The ecommerce-focused retailer, which also owns Overstock, Buy Buy Baby, and a blockchain asset portfolio, said it recorded its seventh consecutive quarter of improvement toward profitability.

“As the company prepares for 2026, we expect year-over-year revenue trends to turn positive,” said Marcus Lemonis, executive chairman and principal executive officer, in an earnings release.

During the quarter, Bed Bath & Beyond invested an additional $3 million in GrainChain, its blockchain supply chain asset. The company also reverted to its Bed Bath & Beyond name, ending its Beyond Inc. era.

On the earnings call, Lemonis said the company views artificial intelligence (AI) as a key tool to boost efficiency and customer engagement moving forward.

“We will be able to operate with (fewer) people and have greater efficiency,” he said.

Lemonis added that AI will also help personalize outreach to customers, which should help improve conversion and retention.

Omnichannel progression: In September, Bed Bath & Beyond completed its $10 million acquisition of the Kirkland’s Home brand assets and trade name from The Brand House Collective Inc. The move accelerates plans to convert all Kirkland’s Home stores into Bed Bath & Beyond locations, following the debut of the first “Bed Bath & Beyond Home” format store in Nashville, Tenn., in August.

“Our omnichannel transformation is progressing, and we expect all 250 locations converted by mid-2026,” Lemonis said. “Together with our local franchise model, this creates an asset-light network of local operators using our brand, our infrastructure, and assortment to reach more markets efficiently.”

Carter’s, Inc. (No. 86)

Q3 2025 net sales: Carter’s Inc. reported net sales of $757.8 million for its fiscal third quarter ended Sept. 27, roughly flat year over year. Executive vice president and chief financial officer Richard Westenberger said the retailer saw comparable sales growth in both store and ecommerce channels. The growth included strong results during the Labor Day promotional period.

The company does not break out online sales figures. However, CEO Douglas Palladini said Carter’s U.S. ecommerce business “is back to growing.” That growth could be seen in higher comparable sales and average unit retail (AUR) gains during the quarter.

“As we moderate promotional messaging in favor of brand and product storytelling, our brands are resonating more deeply with consumers online, especially young Gen Z families with whom we have seen 17% growth in consumer counts year to date,” he said.

Cost reduction efforts: As part of its transformation plan, Carter’s will close about 150 North American stores over the next three years, up from its prior target of 100.

The closures are expected to improve profitability through reduced fixed costs and sales transfers to nearby stores and online channels.

“Our history, over time, shows that there’s about a 20% transfer rate to nearby stores and to our ecommerce channel,” Westenberger said.

The company also plans to eliminate roughly 300 office-based roles — about 15% of its workforce — by the end of 2025, alongside additional expense reductions.

Carter’s said the workforce reductions are projected to generate about $35 million in yearly savings starting in 2026. Altogether, the retailer anticipates roughly $45 million in total cost savings next year. It noted those savings will help cushion the impact of ongoing tariffs.

Crocs, Inc. (No. 93)

Q3 2025 sales: Crocs Inc. said its consolidated revenue was $996.3 million for the fiscal third quarter ended Sept. 30, down 6.2% year over year. Direct-to-consumer (DTC) revenue, which includes online sales, rose 1.6% to $562.5 million. In addition to its namesake Crocs brand, the company also owns the casual footwear label Heydude.

“While our results came in ahead of expectations, we believe both of our brands have greater potential, and are working to regain momentum in the marketplace,” CEO Andrew Rees said in the earnings release.

For the Crocs brand, overall sales decreased 2.5% to $836 million. North American DTC revenue fell 7.7% in the quarter, while international DTC sales climbed 25.9%, including mid-20% growth in China across all channels. Global Heydude brand revenue declined 21.6%, though DTC sales were nearly flat, down just 0.5%.

Despite some promotional pullback on digital channels, Crocs continues to strengthen its digital presence through “disruptive digital and social marketing,” he noted.

“Year-to-date, we’ve accelerated our first-mover advantage in social commerce,” Rees said. “We remain the number one footwear brand on TikTok Shop in the U.S., and the growing adoption of this platform is gaining momentum with younger consumers.”

Tariff impact on Crocs: Chief financial officer Patraic Reagan said tariffs created roughly 230 basis points of headwinds in the third quarter.

The company offset part of that impact through vendor negotiations and supply chain efficiencies. Nevertheless, it expects most remaining pressure in Q4 to stem from tariffs, he said.

Looking ahead, Crocs expects Q4 revenue for the Crocs brand to decline about 3%. Heydude revenue is projected to fall in the mid-20% range.

eBay, Inc. (No. 10 in the Global Online Marketplaces Database)

Q3 2025 sales: EBay Inc. reported revenue of $2.82 billion, up 9% year over year, for the quarter ended Sept. 30. Gross merchandise volume (GMV) rose 10% to $20.1 billion, driven by strength in focus categories and the U.S. market, chief financial officer Peggy Alford said.

The Estée Lauder Companies, Inc. (No. 41)

Q1 2026 net sales: The Estée Lauder Companies Inc. reported net sales of $3.5 billion for the fiscal first quarter ended Sept. 30, up 3.6% year over year. CEO Stéphane de La Faverie said the company achieved 3% organic sales growth, a sharp turnaround from the 13% decline in the prior quarter.

“As Mainland China contributed nicely to return to growth, the rest of our markets in total improved sequentially, including high single-digit growth in our priority emerging markets, led by Mexico, Turkey and India’s double-digit growth,” de La Faverie told investors on Estée Lauder’s earnings call.

Mainland China was the company’s strongest market, with both online and brick-and-mortar channels outperforming, though digital sales led the gains.

Globally, the company has expanded its online consumer coverage through new partnerships with Amazon and TikTok Shop.

“Capitalizing on the learnings that we have had with Amazon in the U.S., Canada and Japan, we opened an Amazon storefront in Mexico with Clinique, The Ordinary, and Estée Lauder and the U.K. with The Ordinary,” de La Faverie said. “We announced our presence on TikTok Shop, launching Clinique, M·A·C, and Dr. Jart in the U.S., as well as The Ordinary in Malaysia and Singapore.”

Before the earnings release, Estée Lauder announced a new partnership with Shopify to modernize and scale its direct-to-consumer operations globally, part of its plan to deliver “best-in-class omnichannel consumer experiences.”

Tariff impact on Estée Lauder: Executive vice president and chief financial officer Akhil Shrivastava said tariff-related headwinds are expected to impact profitability by about $100 million.

To help offset this, the company is leveraging trade programs and optimizing its regional manufacturing footprint to bring production closer to key markets. Part of this effort will be made possible by its facility in Japan.

Etsy, Inc. (No. 20 in the Global Online Marketplaces Database)

Q3 2025 sales: Etsy Inc. reported gross merchandise sales (GMS) of $2.73 billion for the quarter ended Sept. 30, down 6.5% year over year. Excluding Reverb, the musical instrument marketplace it sold in June, GMS inched up 0.9%, while sales on Etsy’s core marketplace declined 2.4%. The company also announced that CEO Josh Silverman will step down at year’s end, with Kruti Patel Goyal, president and chief growth officer, set to take over in 2026.

Read more on Etsy’s earnings here.

Wayfair, Inc. (No. 10)

Q3 2025 sales: Wayfair Inc. reported revenue of $3.12 billion, up 8.1% year over year for the quarter ended Sept. 30, marking its fourth consecutive quarter of revenue growth. CEO Niraj Shah said the home furnishings retailer has not seen a noticeable negative impact from tariffs on consumer purchases. He credited recent technology investments, including migrating its data centers to the cloud, for helping drive results.

Other recent ecommerce earnings results

Alibaba Group Holding Limited

Q1 2026 revenue: Alibaba Group Holding Limited said revenue grew 1.8% year over year to $34.6 billion in its fiscal first quarter. CEO Eddie Wu said Alibaba’s strategy remains fixed on “consumption and AI + Cloud.” He asserted that these are the company’s two pillars for long-term growth.

The Home Depot Inc. (No. 4)

Q2 2025: The Home Depot Inc. said net sales jumped 4.9% year over year to reach $45.28 billion in its fiscal second quarter ended Aug. 3. Meanwhile, online sales increased 12% year over year as the home improvement retailer worked to speed up fulfillment.

Read more on Home Depot’s online sales here.

O’Reilly Automotive, Inc. (No. 146)

Q3 2025 sales: O’Reilly Automotive, Inc. said sales increased of 7.8% year over year to $4.7 billion in its fiscal third quarter ended Sept. 30. The company’s record-high quarterly revenue and other successes were enough to boost its full-year 2025 comparable store sales guidance. Looking ahead, O’Reilly set expectations at a range of 4.0% to 5.0%.

“We are pleased to report another quarter of solid performance and profitable growth, highlighted by a 5.6% increase in comparable store sales and a 12% increase in diluted earnings per share for the third quarter,” said Brad Beckham, CEO at O’Reilly, in its earnings release.

Tariff impact on O’Reilly: Beckham told investors that the company believes the worst impact from new tariff-related costs in 2025 is now behind it.

“While the broader tariff landscape has the potential to remain fluid, at this stage, we believe we have seen the lion’s share of the cost impacts we are expecting as they relate to the tariffs currently in effect,” he said during O’Reilly’s earnings call. “As a result, we anticipate a mid-single-digit same-SKU benefit in the fourth quarter, but have also factored into our guidance a continuation of the pressure to our DIY customers from the dynamics I mentioned earlier.”

Specifically, those dynamics include consumers’ reactions to new price levels, despite a willingness to invest in their vehicles, the CEO observed.

The Procter & Gamble Company (No. 486)

Q1 2026 net sales: The Procter & Gamble Company recorded net sales growth of 3.2% year over year to $22.4 billion in its fiscal first quarter ended Sept. 30. Jon Moeller, chairman of the board, president and CEO at Procter & Gamble noted the consumer packaged goods company was “increasing investment in innovation and demand creation” as it looks to “improve value for consumers and drive category growth.” Online successes for the quarter included both an Olay premium body wash launch and results from P&G’s baby care category in China.

“Our organic sales growth, earnings, and cash results in the first quarter reflect strong execution of our integrated strategy,” said Moeller. “These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment.”

Online shoppers in China: Andre Schulten, chief financial officer at P&G, mentioned during an earnings call that its baby care business grew 20% in China, which he credited to consumer insights and adapting communications with consumers, many of whom are online businesses. In addition, Schulten cited the launch of Olay premium body wash in July.

“Since launch, the new premium line has grown over 30% in offline channels and 80% online, driving category growth and Olay share growth,” he stated.

Target Corporation (No. 5)

Q2 2025: Target Corporation recorded a net sales drop of 0.9% year over year to $25.2 billion in its fiscal second quarter ended Aug. 2. Despite overall challenges, the retailer’s online sales increased 4.3% from a year earlier. Target credited 25% growth in same-day delivery through its Target Circle 360 paid membership program growth in Drive Up use.

Read more on Target’s online sales here.

Tractor Supply Company (No. 88)

Q3 2025 net sales: Tractor Supply Company reported net sales increased 7.2% year over year to $3.72 billion in its fiscal third quarter ended Sept. 27. That was a record high for the farm supplies and rural lifestyle retailer.

“As we enter the fourth quarter, we are well-positioned for the fall and winter seasons, operating with discipline and controlling what we can control,” said Hal Lawton, president and CEO at Tractor Supply. “With improved visibility on tariffs and the broader demand environment, we are narrowing our full-year guidance range to reflect our year-to-date performance and a balanced outlook.”

Online sales growth: “Digital sales grew at a low double-digit rate, representing a notable sequential improvement from the second quarter,” Lawton shared during Tractor Supply’s Oct. 23 earnings call. “Nearly 80% of online orders were fulfilled by our stores, highlighting the strength of our local network and store base.”

In addition, he said that same-day delivery and deliver-from-store options “outperformed.” He highlighted the results as evidence of “the value of the final-mile capabilities” that Tractor Supply is building out.

Walmart, Inc. (No. 2)

Q2 2026: Walmart Inc.’s total sales were up 4.8% year over year to $177.4 billion in its fiscal second quarter ended July 31. Online sales alone increased 25% over the same period. CEO Doug McMillon said Walmart would keep prices “as low as we can for as long as we can” in the face of tariffs.

Ecommerce earnings calendar

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

Hims & Hers Health: Nov. 3
Harley-Davidson: Nov. 4
Revolve Group: Nov. 4
e.l.f. Beauty: Nov. 5
Canada Goose: Nov. 6
Ralph Lauren: Nov. 6
Tapestry: Nov. 6
Under Armour: Nov. 6
Warby Parker: Nov. 6
Yeti Holdings: Nov. 6
Figs: Nov. 6
Peloton: Nov. 6

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 Alphabet, Estée Lauder and more