The story began on April 30, when Walmart announced it would close all 51 of its health centers in five states and its telehealth service. That announcement sparked interest from others, who are now picking up the pieces, while Walmart has instead expanded its reach in the pet health care space.

Walmart’s decision to sell its telehealth business

The first major sale will be Walmart’s telehealth business, MeMD. Health care technology company Fabric agreed to acquire MeMD for an undisclosed amount, the venture-backed startup announced on June 28. The deal is part of a year of upheaval in retail health care.

MeMD was established in 2010 and acquired by Walmart in 2021. The service offers virtual care, providing on-demand medical and behavioral health services to millions of members nationwide.

Fabric touted the acquisition of MeMD as complementary to the startup’s existing offerings.

“The MeMD team built a leading virtual care offering, and we are excited to welcome them to Fabric,” said Aniq Rahman, founder and CEO of Fabric. “This acquisition aligns with our strategic vision to transform health care delivery through innovative technology and exceptional patient care. The combination of our teams, technology, and clinicians strategically positions Fabric to expand across payers, employers, and provider organizations quickly.”

Walmart ecommerce sales by year

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top such marketplaces by third-party gross merchandise value (GMV). Digital Commerce 360 projects total ecommerce sales for Walmart in 2024 will be $125.13 billion.

Other retailers facing problems in health care

Greg Zakowicz, an ecommerce expert at Omnisend, says acquiring Walmart’s telehealth business makes sense. Given that Walmart is shuttering its in-store health care clinics, this move is appropriate.

“Walmart will continue focusing on other forms of personal health care such as pharmacies and vision care, which will be good for the company and many of its customers,” Zakowicz said. But the retail aspect of dispensing health care wasn’t workable, he added.

Walgreens and CVS have also announced plans to shut thousands of in-store retail health clinics.

“The sad reality is that the financial structure of operating health care clinics makes it difficult to generate profits, hurting consumers,” Zakowicz stated. “When companies like Walmart, Walgreens and CVS have difficulty succeeding, it should be considered a red flag.”

Issues with telehealth

Zakowiscz added that when Walmart exited the retail clinic business, hanging on to telehealth made little sense.

“Without clinics, continuing to operate a telehealth practice makes little sense for Walmart, and selling it was the obvious choice,” Zakowiscz said.

However, Walmart’s loss is Fabric’s gain.

“For Fabric, it fits right into its wheelhouse,” Zakowiscz explained. “The acquisition bolsters its capabilities for its established business model and should give it more room to grow.”

According to press releases, Fabric will continue to service Walmart and Sam’s Club customers seamlessly.

Fabric’s current customers include Luminis Health, OSF HealthCare, Highmark Health and Intermountain Health.

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, Twitter, Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

The post Fabric acquires Walmart’s MeMD telehealth business appeared first on Digital Commerce 360.

H.I.G. Capital has acquired Health-E Commerce, operator of sites FSAstore.com and HSAstore.com, as well as the Caring Mill private label brand of health care products.

Founded in 2010, Health-E Commerce offers over 2,500 FSA and HSA-eligible products and services on its ecommerce sites. Those offerings cater to consumers who can make purchases using flexible spending accounts.

The online retailer carved out a successful niche in health care ecommerce by simplifying the purchasing experience for consumers with FSA and HSA benefits, guaranteeing eligibility across a variety of categories. Those include:

• Over-the-counter medications
• Pain relief
• Skin and personal care
• Sun protection
• Diagnostic products
• First aid
• Telehealth

The company did not publicly release the terms of the deal.

“We are excited to enter this new chapter with H.I.G. as we continue to enhance Health-E Commerce’s breadth of product and telehealth service offerings to better serve our customers,” says CEO Preston Farrington. “H.I.G.’s consumer and healthcare experience, combined with its significant resources, position us to continue executing upon our growth strategy and vision for the company.”

Based in Miami, H.I.G. Capital is an investment firm with $64 billion of capital under management.

Prior to the sale to HIG Management, Health-E Commerce was managed by BPOC, a Chicago-based private equity firm that invests exclusively in health care companies.

William Blair functioned as financial advisor to Health-E Commerce, a portfolio company of BPOC, in connection with its sale to H.I.G. Capital. The transaction was signed on May 4, 2024, and closed on June 17.

Submit a nomination

Nominate a game-changer for the Global B2B eCommerce Industry Awards from Digital Commerce 360 and the B2B Ecommerce Association.

Sign up

Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, Twitter, Facebook and YouTube. 

The post An early comer to health care ecommerce is under new ownership appeared first on Digital Commerce 360.

Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated.

This week’s ecommerce earnings takeaways

• Lululemon posted a 10.4% increase in net sales for the quarter, with digital sales accounting for 41% of revenue.
• GameStop shared earnings earlier than expected, detailing a 28.7% decrease in net sales from a year prior.

Bark, Inc. (No. 201)

Q4 2024 earnings: Bark reported a 3.6% year-over-year decrease in revenue to $121.5 million for its first fiscal quarter of 2024, which ended March 31. It also recorded $490.2 million in revenue for its 2023 fiscal year, which was down 8.4% from the previous year.

Read more about Bark’s earnings here.

Bath & Body Works, Inc. (No. 62)

Q1 2024 earnings: Bath & Body Works said it saw a 0.9% year-over-year decrease in net sales, which totaled $1.4 billion during its first fiscal quarter of 2024 ended May 4.

Gina Boswell, CEO at Bath & Body Words, shared during its June 4 conference call that “there has been and continues to be significant work required to bring the company’s technology systems to where we need them to be for a leading omnichannel retail business of our size.” Looking ahead, she expects to be able to share more about these efforts later in 2024.

“We remain focused on investing in the foundational tools and systems need to support future growth, and have been engaging with world-class partners to do so,” Boswell said. “We continue to evolve the digital experience for our customers, and we look forward to sharing big wins from these efforts later in the year.”

Big Lots, Inc. (No. 237)

Q1 2024 earnings: Big Lots reported a 10.2% decrease in net sales year over year to $1.0 billion for its first fiscal quarter of 2024, which ended May 4. The company cited a “challenging consumer environment” as it announced a $205.0 million loss for the period.

The retailer is in the middle of a turnaround effort. It cited improved online promotions and experience as priorities as it looks to change course.

“We’re continuing to enhance the online experience and showcasing extreme bargain deals through the weekly ad, big bargains and big buyout sections, heavily featured on the site,” said Bruce Thorn, president and CEO at Big Lots, during the company’s June 6 earnings call. “We remain focused on influencing her home shopping journey through enabling customers to browse more products online and now offer a coming-soon preview, in-store inventory and have started the ability to preorder for core big-ticket items in furniture and seasonal at the end of Q2.”

GameStop Corp. (No. 35)

Q1 2024 earnings: GameStop said its net sales were down 28.7% year over year to $881.8 million for its first fiscal quarter of 2024 that ended May 4. The same period included a net loss of $32.3 million, which was smaller than its loss of $50.5 million a year earlier.

The company did not hold an earnings call after announcing earnings days earlier than previously scheduled. In addition, it shared that it would sell 75 million shares, following the sale of 45 million shares announced in May. That initial sale brought in about $933.4 million, Reuters reported. GameStop returned to the news spotlight ahead of its earnings release as meme-stock influencer and online streamer Keith Gill, who goes by the name “Roaring Kitty,” began sharing his recent trading activity publicly.

Lululemon Athletica, Inc. (No. 25)

Q1 2024 earnings: Lululemon Athletica announced net sales increased 10.4% to $2.2 billion in its first fiscal quarter ended April 28.

“In the first quarter, we saw strong momentum in our international markets, demonstrating how our brand continues to resonate around the world,” said Calvin McDonald, chief executive officer at Lululemon. “Guests responded well to our product innovations across categories, and we are pleased by the progress we are making to optimize our U.S. product assortment.”

During the company’s June 5 earnings call, Meghan Frank, its chief financial officer, noted that Lululemon ecommerce sales were up significantly, contributing to the quarter’s results.

“In our digital channel, revenue increased 8% and contributed $906 million of top line or 41% of total revenue,” Frank stated.

Other recent ecommerce earnings results

Abercrombie & Fitch Co. (No. 48)

Q1 2024 earnings: Abercrombie & Fitch reported net sales increased 22% to $1.02 billion during its first fiscal quarter of 2024 ended May 4, compared with the same period a year prior.

“We saw improved traffic trends across both stores and digital channels, which helped show teen customers the changes we have made to the assortment,” said Fran Horowitz, CEO at Abercrombie & Fitch, discussing its Hollister stores during a company earnings call. The company credited about 60% of Abercrombie brands’ sales to digital channels in 2023, with approximately 30% of its Hollister brand’s sales coming through digital channels.

Alibaba Group Holding Limited

Q4 2024: Alibaba said it grew revenue 7% year over year in its fiscal fourth quarter ended March 31, 2024. Meanwhile, net income decreased 96% compared to the prior Q4.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by third-party GMV. Tmall ranks No. 2. Both operate in China.

Read more on Alibaba’s earnings here.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter, and its operating income more than tripled.

It ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

Read more on Amazon’s earnings results here.

American Eagle Outfitters Inc. (No. 40)

Q1 2024 earnings: American Eagle Outfitters recorded $1.14 billion in net sales for its first fiscal quarter of 2024 ended May 4, up 6% from a year prior. That percentage increase set a new first-quarter record for American Eagle. While in-store revenue rose 4% for the period, digital revenue grew 12%.

Best Buy (No. 8)

Q1 2025 earnings: Best Buy’s net sales of $13.41 billion were down 0.9% year over year in its first fiscal quarter of 2025 ended May 4. In the same period, online sales dropped 6.1%.

Read more on Best Buy’s earnings results here.

Costco Wholesale Corp. (No. 6)

Q3 2024 earnings: Costco net sales grew 9.1% to $57.39 billion in its third fiscal quarter of 2024 ended May 12. During the same period, ecommerce sales grew 20.7%.

Read more on Costco ecommerce sales here.

Dick’s Sporting Goods (No. 31)

Q1 2024 earnings: Dick’s Sporting Goods said net sales were up 6.22% year over year to $3.02 billion in its first fiscal quarter of 2024 ended May 4. The company raised its full-year guidance, noting that customers were spending more on apparel, athletic gear and sneakers.

Foot Locker (No. 59)

Q1 2024 earnings: Foot Locker reported net sales dropped 2.8% to $1.87 billion from a year earlier in its first fiscal quarter of 2024 ended May 4. The company is working on an ongoing turnaround plan, which CEO Mary Dillon said included “strengthening our brand partnerships, enhancing customer engagement through digital and loyalty investments.”

The Gap Inc. (No. 20)

Q1 2024 earnings: The Gap raised its guidance for the full year, announcing a 3.4% year-over-year increase in net sales of $3.4 billion for its first fiscal quarter ended on May 4. The quarter marked the first time during CEO Richard Dickson’s current campaign to turn the company around that its Athleta, Banana Republic, Gap and Old Navy brands all posted positive comparable sales increases. Dickson took over the chief executive role in August 2023.

The Home Depot Inc. (No. 4)

Q1 2024: Home Depot reported that sales declined 2.3% in its fiscal first quarter of 2024 ended April 28 due to challenges in the broader economy. B2B and Pro sales were equally impacted, while online sales grew.

Kohl’s Corp. (No. 23)

Q1 2024 earnings: Kohl’s net sales fell 5.3% to $3.18 billion for its first fiscal quarter ended on May 4. The retailer blamed weather and excess inventory as it posted a net loss of $27 million, surprising analysts.

Nordstrom Inc. (No. 22)

Q1 2024 earnings: Nordstrom net sales increased 5.1% year over year to $3.22 billion during the company’s first fiscal quarter of 2024 ended May 4. The retailer shrank its net loss to $39 million from $205 million a year earlier as digital sales fell 0.2% during the same period. Digital sales accounted for 34% of Nordstrom’s total sales for the quarter, the company reported. It opened nine new stores in the U.S. in the first quarter, with plans to open 18 more.

Salesforce

Q1 2025 earnings: Salesforce grew revenue 11% year over year to $9.13 billion in its first fiscal quarter of 2025 ended April 30. However, the company missed expectations, with revenue from its Professional Services and Other category down 9.4% in the quarter at $548 million.

Read more about Salesforce revenue here.

Target Corp. (No. 5)

Q 1 2024: Target reported that total revenue declined 3.1%. That’s down to $24.5 billion in the first quarter of its fiscal 2024 ended May 4. However, online sales did increase slightly. Declines in discretionary categories were partially offset by continuing growth in the beauty category.

Read more on Target’s earnings results here.

Ulta Beauty (No. 39)

Q1 2024 earnings: Ulta Beauty net sales rose 3.4% year over year to hit $2.73 billion in its first fiscal quarter of 2024 ended May 4. CEO Dave Kimbell said Ulta “successfully completed the final phase of our digital store transition” during the quarter “and are on track to decommission the legacy platform in the second quarter.” In addition, following the announcement of Ulta’s expanded partnership with DoorDash, Kimbell said Ulta plans to “introduce new digital buying guides that amplify search engine optimization while providing guests with educational content, beauty tips and product recommendations.”

Walmart Inc. (No. 2)

Q1 2025: Walmart grew U.S. online sales 22% for its fiscal 2025 first quarter ended April 30, 2024. Consolidated revenue grew 6.0% to $161.5 billion in Q1.

Read more on Walmart’s earnings here.

Ecommerce earnings calendar

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

• Lovesac Co.: June 13
• Signet Jewelers Ltd.: June 13
• La-Z-Boy Inc.: June 18

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.

The post Ecommerce earnings recap: What you missed from Lululemon, GameStop and more appeared first on Digital Commerce 360.

Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated.

This week’s ecommerce earnings takeaways

• Some retailers still see significant runway to grow their online sales. BJ’s grew digital sales more than 20% in the quarter with a focus on convenience and omnichannel fulfillment.
• Not all discount chains are worried about competition from Temu and Shein. TJX said that growing Chinese retailers aren’t a significant threat.

AutoZone Inc. (No. 283)

Q3 2024: AutoZone reported net sales increased 1.9% to $4.2 billion in the third quarter ended May 4. Sales were negatively impacted by cool and wet weather in the Northeast and Midwest, as well as slow tax refund rollouts, the retailer said. Both factors led to a year-over-year decline in do-it-yourself sales, AutoZone noted. However, the retailer expects those trends to moderate in Q4.

BJ’s Wholesale Club Holdings Inc. (No. 44)

Q1 2024: BJ’s said total revenue increased 4.1% to $4.92 billion in the first quarter ended May 4. Comparable store sales increased 1.6% due to strong traffic and unit growth. Meanwhile, digital sales increased 21% year over year, BJ’s said, and 40% on a two-year basis. Digital sales growth was in the double digits every quarter of the past two years.

About 90% of online sales are fulfilled by stores through buy-online-pickup-in-store and same-day delivery, the retailer said.

E.l.f. Beauty (No. 681)

Q4 2024: E.l.f net sales increased 71% to $321.1 million in the fourth quarter ended March 31. That was about $30 million higher than the $292.6 million expected by analysts. The sales growth was driven by strength in both retail and online sales, e.l.f. said. 

Read more on e.l.f.’s earnings here.

Lowe’s Cos. Inc. (No. 11)

Q1 2024: Lowe’s Cos. Inc. reported that online sales grew about 1% in the first quarter of fiscal 2024 ended May 3. Meanwhile, Lowe’s total sales declined 4.0% to $21.4 billion, and comparable sales fell 4.1%.

Read more on Lowe’s earnings results here.

Macy’s Inc. (No. 14)

Q1 2024: In the first quarter ended May 4, Macy’s net sales declined 2.7% to $4.8 billion from Q1 in 2023. Meanwhile, comparable sales — including online sales — declined 1.2%. Those sales declines came after the retailer announced plans to close 150 stores and invest in a new strategy to turn negative trends around.

Read more on Macy’s earnings here.

Petco Health and Wellness Co, Inc. (No. 86)

Q1 2024: Petco reported that net revenue declined 1.7% to $1.5 billion in the first quarter ended May 4. It also had a net loss of $45 million, compared to a $1.9 million net loss in the year-ago period.

Consumable product sales were flat while discretionary supplies declined 7%, the retailer said. Services, however, grew 10% due to strength in mobile clinics and grooming, the retailer said.

Ralph Lauren Corp. (No. 69)

Q4 2024: Ralph Lauren revenue increased 2% to $1.6 billion in the fourth quarter ended March 30. Full-year revenue increased 3% to $6.6 billion.

Online sales declined 4% in North America. Meanwhile, they increased 11% in Europe and 19% in Asia. Ralph Lauren began testing an artificial intelligence (AI) predictive buying model in Asia and Europe to give better information on sizing and best-selling products in 2024, it said. Based on early success, the retailer will scale up the technology to 25% of direct-to-consumer business in fiscal 2025.

Shoe Carnival Inc. (No. 575)

Q1 2024: Shoe Carnival reported that net sales increased 6.8% to $300.4 million in the first quarter of 2024 ended May 4. 

“We are encouraged by the strong results delivered this quarter, with net sales growth above our expectation, gross profit margin expansion versus prior year, and earnings at the high end of our expectation,” CEO Mark Worden said in a statement. “We gained significant market share, with accelerating sales momentum across our business as the quarter progressed, including double-digit growth in sandals that continued in the quarter after the Easter holiday period.”

Shoe Carnival acquired Rogan’s Shoes in February for $45 million.

Target Corp. (No. 5)

Q 1 2024: Target reported that total revenue declined 3.1% to $24.5 billion in the first quarter of fiscal 2024 ended May 4. However, online sales did increase slightly. Declines in discretionary categories were partially offset by continuing growth in the beauty category.

Read more on Target’s earnings results here.

The TJX Companies, Inc. (No. 66)

Q1 2025: TJX reported that net sales increased 6% to $12.48 billion in the first quarter of fiscal 2025 ended May 4. The retailer operates the TJ Maxx, Marshalls, Sierra and Home Goods chains.

TJX said that low-price online retailers Temu and Shein are not a threat.

“We see very little issue with them taking market share from us,” CEO Ernie Hermann told investors. “I could see that their business model could overlap with some other brick-and-mortar guys or some other online guys for sure. But we just don’t see that as bumping up with our customer base or end use.”

Urban Outfitters Inc. (No. 28)

Q1 2025: Urban Outfitters net sales increased 7.8% to a record $1.20 billion in the first quarter ended April 30. Online sales grew in the high single digits, the retailer said.

Urban Outfitters is also rethinking its marketing strategy with a greater focus on social media. So far, it’s working. “The brand is encouraged that some of their recent adjustments to distribution channels, content, and community conversations have resulted in growth in new and total customers on the digital channel for the first time in quite some time,” chief operating officer Frank Conforti told analysts.

Williams-Sonoma Inc. (No. 19)

Q1 2024: Williams-Sonoma said revenue declined 4.9% to $1.66 billion in the first quarter ended April 28. Of the retailer’s brands, Pottery Barn sales declined the most, down 10.8%. West Elm also declined 4.8%. However, Williams Sonoma and Pottery Barn Kids and Teen grew 0.9% and 2.8%, respectively.

Williams-Sonoma shared plans to invest in its ecommerce experience with a focus on AI and first-party data collection. Those investments will improve product discovery, personalization, last-mile delivery and more, the retailer said.

Other recent ecommerce earnings results

Alibaba Group Holding Limited

Q4 2024: Alibaba said it grew revenue 7% year over year in its fiscal fourth quarter ended March 31, 2024. Meanwhile, net income decreased 96% compared to the prior Q4.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by third-party GMV. Tmall ranks No. 2. Both operate in China.

Read more on Alibaba’s earnings here.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter, and its operating income more than tripled.

It ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

Read more on Amazon’s earnings results here.

Boot Barn Holdings Inc. (No. 404)

Q4 2024: Boot Barn reported that net sales declined 8.7% to $388.5 million in its fiscal fourth quarter ended March 30. Ecommerce sales declined 7.6%. For the full year, net sales grew 0.6% to $1.67 billion, the retailer said.

Boot Barn’s core customers are still facing persistent inflation, but fourth-quarter trends were meaningfully better than Q3’s, it said.

Canada Goose Holdings Inc. (No. 200)

Q4 2024: Canada Goose said revenue increased 22% to $358.0 million in its fiscal fourth quarter ended March 31. Direct-to-consumer revenue grew 19% due to higher ecommerce sales, it said. Revenue for the full year increased 10% to $1.33 billion. Layoffs of 17% of its workforce in March contributed to cost savings and greater efficiencies, Canada Goose said.

However, even as results improved this quarter, “there’s clearly still some headwinds around consumer spending and specifically consumer luxury spending,” chief financial officer Neil Bowden told investors.

Chewy Inc. (No. 12)

Q4 2023 results: Chewy, Inc. reported that net sales grew in its Q4 and fiscal 2023 ended Jan. 28, 2024, even as pet adoptions declined.

Read more on Chewy earnings here.

Costco Wholesale Corp. (No. 6)

Q2 2024 earnings: Costco said net sales grew 5.7% to $57.33 billion in its second fiscal quarter of 2024 ended Feb. 18. Ecommerce comparable sales grew 18.4% in the same period.

Read more on Costco ecommerce sales here.

Crocs Inc. (No.97)

Q1 2024: Crocs reported that revenue grew 6% to $939 million in its fiscal first quarter ended March 31. Direct-to-consumer sales, including ecommerce, grew 11.8%, while wholesale grew 3.2%. 

Read more on Crocs earnings here.

The Home Depot Inc. (No. 4)

Q1 2024: Home Depot reported that sales declined 2.3% in its fiscal first quarter of 2024 ended April 28 due to challenges in the broader economy. B2B and Pro sales were equally impacted, while online sales grew.

Read more on Home Depot’s earnings here.

VTEX 

Q1 2024: VTEX reported that revenue grew 24.5% to $42.3 million. The global enterprise digital commerce platform said gross merchandise value (GMV) rose 22.2% to $4.0 billion.

VTEX provides ecommerce platforms for 25 retailers in the Top 1000.

Walmart Inc. (No. 2)

Q1 2025: Walmart grew U.S. online sales 22% for its fiscal 2025 first quarter ended April 30, 2024. Consolidated revenue grew 6.0% to $161.5 billion in Q1.

Read more on Walmart’s earnings here.

Under Armour Inc. (No. 99)

Q4 2024: Under Armour said that total revenue and ecommerce revenue both declined in its fourth quarter of fiscal 2024 ended March 31. Ecommerce sales made up 43% of total DTC sales in the quarter.

Read more on Under Armour’s earnings here.

Ecommerce earnings calendar

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

• Amazon.com Inc.: Feb. 1
• Best Buy Co Inc.: May 30
• Costco Wholesale Corp.: March 7
• The Home Depot Inc.: May 14
• Lowe’s Cos Inc.: May 21
• Target Corp.: May 22
• Walmart Inc.: May 16

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.

The post Ecommerce earnings recap: What you missed from Petco, Williams-Sonoma and more appeared first on Digital Commerce 360.

“Fiscal 2024 marked our strongest year of net sales growth on record, a continuation of the exceptional, consistent, category-leading growth we’ve delivered,” said CEO Tarang Amin in a written statement. “As we look ahead, we believe we are still in the early innings of unlocking the full potential we see for e.l.f. Beauty across cosmetics, skin care and international markets,” she continued.

E.l.f. is No. 681 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes e.l.f. in the Health & Beauty category, which was the fastest-growing category in 2023. E.l.f was the 14th fastest-growing retailer in the entire Top 1000 last year, according to Digital Commerce 360 research.

E.l.f. Q4 and 2024 results

In Q4, e.l.f net sales increased 71% to $321.1 million. That was about $30 million higher than the $292.6 million expected by analysts. The sales growth was driven by strength in both retail and online sales, e.l.f. said. Net income was $30.8 million. Q4 was also the 21st consecutive quarter of net sales and market share growth, it said. 

Full-year net sales increased 77% to $1.02 billion, the retailer said, due to the same trends that boosted Q4 results. Net income was $127.7 million.

The retailer, which sells skin care and cosmetics products, broke down results by category. Color cosmetics sales grew 30% in Q4. That increase was an improvement from a year ago when the category had already grown 18% from the previous year. The overall cosmetics category, meanwhile, declined 3%. E.l.f. is “bullish” on the category, Amin said.

E.l.f. also outperformed the industry in the skin care category, it said. The retailer’s skin care sales grew 38% in Q4 compared to industry growth of 2%.

Growth in both parts of the business was partially due to the retailer’s low price point, it said. The average price point for an e.l.f. product is $6.50, compared to $9.50 for other mass cosmetics brands and more than $20 for luxury brands.

“Our value proposition underpins our strong unit growth,” Amin said.

E.l.f. Q4 online sales

Q4 digital sales grew 70% year over year, chief financial officer Mandy Fields stated. Online channels drove 22% of total sales, compared to 18% of sales in the year-ago period. 

Online sales grew 90% year over year for the full year, she added.

E.l.f’s loyalty members are essential to the brand’s digital growth, Fields said. She noted that members make up about 80% of sales on elfcosmetics.com. The Beauty Squad Loyalty Program has 4.5 million members and is growing 30% year over year. That momentum extends to the mobile app, too.

“We’re seeing terrific engagement on our e.l.f. mobile app, which now boasts a 4.8-star rating and recently surpassed over 2 million downloads,” Fields said.

E.l.f. also credited popularity with young consumers and successful marketing with its successful quarter. A Q4 collaboration with Liquid Death led to a triple-digit increase in traffic to e.l.f.’s website and 12 billion impressions, Amin said.

The beauty retailer also saw success from experimenting with different formats and technology, including an Apple Vision Pro app and a partnership with Roblox.

E.l.f 2025 guidance

The retailer shared expectations of a 20%-22% increase in net sales in fiscal 2025. That’s well below the 71% year-over-year increase in fiscal 2024. 

However, Fields pointed out that e.l.f. also started fiscal 2024 predicting about 20% growth. A cautious outlook is part of the company’s philosophy, she explained. 

“But what I will say is that it gives you a little bit of insight into our guidance philosophy and what has worked well for us over these last five years, taking it one quarter at a time, which is why we indicated that we do love the momentum that we’re seeing out of Q1 and feel great about our overall guidance range at this point,” she told investors.

“We’re not implying any slowdown,” Amit said. She explained that e.l.f. won’t provide a higher guidance until Q1 results come in.

e.l.f. Beauty earnings

For the fiscal fourth quarter ended March 31, 2024, e.l.f. Beauty reported:

• Net sales increased 71% to $321.1 million.
• Digital sales grew 70% year over year. 
• Online sales drove 22% of total sales.

For the fiscal year ended March 31, 2024, e.l.f. Beauty reported:

• Net sales increased 77% to $1.02 billion.
• Net income was $127.7 million, up from $61.5 million in the year-ago period. 
• Online sales grew 90% year over year.

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter, Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

The post E.l.f. Beauty sales increase 71% in Q4 as the category continues to grow appeared first on Digital Commerce 360.

The retailer, founded in 2010 as an online-only business, ended Q1 with 245 total stores. Including the eight in Q1 2024, Warby Parker has added 41 new stores since Q1 2023. Senior vice president and chief financial officer Steve Miller said this 20% increase in Warby Parker store count compares to retail revenue growth of more than 24% over the same period.

Warby Parker grew total revenue 16.3% in Q1 2024. Co-founder and co-CEO Neil Blumenthal said in a statement that this marked the retailer’s highest year-over-year revenue growth for a quarter since 2021.

Along with expanding its physical stores business, Blumenthal said in an earnings call with investors, Warby Parker has also been investing in long-term strategies including:

• Hiring optometrists
• Scaling up its contacts sales
• “Introducing new frame and lens innovation”
• Reinvesting in marketing

The April 8, 2024, solar eclipse drove traffic and sales, some within Q1 and the rest bleeding over into Q2, Blumenthal said. The company gave away International Organization for Standardization-certified glasses for viewing the eclipse in its stores ahead of the event.

“It actually drove our highest retail traffic week ever,” Blumenthal said. “We were distributing hundreds of thousands of these eclipse viewers.”

Warby Parker is No. 351 in the Top 1000, Digital Commerce 360’s database of the largest ecommerce retailers in North America.

Warby Parker ecommerce vs. physical store growth in Q1 2024

In Q1 2024, Warby Parker ecommerce grew 2% year over year. Total revenue increased $28.0 million, or 16.3% year over year, to $200.0 million. That’s its highest quarterly revenue to date.

Retail stores far outpaced Warby Parker ecommerce growth, increasing more than 24% year over year.

Blumenthal said contact lenses guided some of Warby Parker’s ecommerce growth in the quarter, drawing sales from both new and returning customers. Co-founder and co-CEO Dave Gilboa added that contact lens sales grew about 40% year over year in the quarter. They represent about 9% of revenue, “which remains well below the 20% industry average,” he said

Glasses drove about 70% of revenue growth in Q1, Blumenthal said. As a product line, he added, glasses sales grew more than 13% year over year in Q1, which compares to 8% growth throughout 2023. Furthermore, glasses are Warby Parker’s highest-margin product, he said.

“The composition of our ecommerce channel is evolving with Home Try-On driving a smaller percent of our orders, as we’ve scaled our store base and as customers are increasingly comfortable purchasing directly online with the support of our virtual Try-On feature,” Blumenthal said.

Eye exam impact

Warby Parker stores that offer eye exams drive higher sales than those that don’t, he said. Blumenthal said that industry-wide, about 75% of prescription glasses purchases are made where customers conduct their eye exams. Revenue from eye exams grew 40% year over year to represent about 5% of revenue, Gilboa added.

That’s “well below the approximately 15% industry average,” Gilboa said. “Today, the majority of our customers still gets their eye exams elsewhere and brings their prescriptions to Warby Parker, highlighting the opportunity in front of us.”

Increasing the number of stores offering eye exams has helped grow average revenue per customer, Gilboa added. Average revenue per customer increased 9.6% year over year in Q1 to $296. Meanwhile, Warby Parker’s number of active customers increased 3.2% to 2.36 million.

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter, Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

The post Warby Parker grows ecommerce sales as it expands physical-store business appeared first on Digital Commerce 360.

Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated.

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.

This week’s ecommerce earnings takeaways

• Secondhand retailers, including ThredUp and The RealReal, continue to benefit from consumers searching for deals and increasingly being willing to buy used apparel and accessories.
• Hims & Hers recorded massive year-over-year growth with the payoff from a successful marketing campaign that could influence other retailers looking to emulate its success.

Allbirds Inc. (No. 395)

Q1 2024: Allbirds said revenue declined 27.6% to $39.3 million in the first quarter ended March 31. That was in line with previous guidance for the quarter, it said.

“The year-over-year decrease is primarily attributable to lower overall demand, as well as the impact of international distributor transitions and retail store closures,” Allbirds said in a press release.

Its strategy going forward is to introduce new products that resonate with customers. Recent launches have performed well, CEO Joe Vernachio said.

Arhaus Inc. (No. 331)

Q1 2024: Arhaus net revenue declined 9.5% to 295 million in the first quarter ended March 31. The decline was due to a backlog of deliveries and weather-related delivery issues, the retailer said, partially offset by increased demand.

The retailer did not share specific ecommerce results.

“Really, really pleased with the results that we’re seeing on e-comm, both in terms of sales and also some of the improvements that we’re making in terms of getting traffic to the site and engages when people are on the site,” chief marketing officer Jennifer Porter told investors.

Beyond Inc. (No. 63)

Q1 2024: Beyond, Inc. reported a slight earnings increase and growth in active customers and orders in its fiscal first quarter ended March 31.

Read more on Beyond’s earnings here.

Brilliant Earth Group, Inc. (No. 200)

Q1 2024: Brilliant Earth reported that revenue remained flat at $97.3 million in the first quarter ended March 31. Total orders grew 13%, and repeat order volume grew more than 20%, the jewelry retailer said. However, average order value declined 12.4%. That’s partially due to fine jewelry, as opposed to engagement rings, becoming a larger part of the business. For example, in the two weeks leading up to Valentine’s Day, fine jewelry sales grew 45% year over year. Heart-shaped jewelry sales grew 182% year over year in the full quarter.

CarParts.com, Inc. (No. 146)

Q1 2024: Revenue declined 5% $166.3 million in the quarter ended March 30, Carparts.com said. The majority of the decline came from lights and mirrors, which typically make up about one-quarter of revenue, the retailer said. Due to increased pressure on discount-seeking consumers, CarParts.com will focus customer acquisition on “consumers that want quality parts at competitive prices,” it said. That customer base is more profitable and will yield better margins going forward, the retailer added.

Figs Inc. (No.163)

Q1 2024: Figs net revenue declined 0.8% to $119.3 million in the first quarter ended March 31. A decrease in orders was partially offset by an increase in average order value, Figs said.

“We’re going to continue to be disciplined around our promotional cadence and we’re going to continue to really utilize promotions in a very celebratory way,” CEO Trina Spear said as the retailer invests in marketing campaigns like the new “I am a nurse” campaign.

Fossil Group, Inc. (No. 188)

Q1 2024: Fossil reported net sales decreased 22% to $255 million in the first quarter ended March 30. The retailer cited “category, consumer and channel softness,” as reasons for the decline, with declines in smartwatch sales also contributing. Industry trends continue to be difficult, the retailer said, as consumers look for value and low costs. However, Fossil predicts a long-term stabilization in the watch market.

Hanesbrands Inc. (No. 277)

Q1 2024: Hanes reported that net sales declined 17% to $1.16 billion in the first quarter ended March 30. That was in the middle of the company’s expectations, it said. Activewear was hit particularly hard, with sales falling 31% year over year to $97 million.

“The remainder of the year-over-year sales decrease was driven by the ongoing combination of challenging activewear apparel market dynamics, including soft consumer demand and cautious ordering from retailers,” Hanes said in a statement.

However, U.S. ecommerce sales fared better. They grew 12% year over year.

Hims & Hers Health Inc. (No. 115)

Q1 2024: Hims & Hers revenue grew 46% to $278.2 million in the first quarter ended March 31. The health company significantly increased investments in TV and other brand campaigns over the last few years, which are now paying off, it said.

“A multi-specialty platform enables us to do this in an efficient manner as we’re able to speak to consumers broadly about a platform of capabilities versus an individual condition. It is clear to us that these efforts are starting to compound,” co-founder and CEO Andrew Dudum told investors.

The retailer ended the quarter with 1.7 million subscribers.

The Honest Company Inc. (No. 823)

Q1 2024: Revenue grew 3% to $86 million in the Honest Co.’s first quarter ended March 31. Baby apparel, wipes, and baby personal care categories drove the growth, it said. The retailer reported a net loss of $1 million, compared with a loss of $19 million in the year-ago period.

The retailer found success on Amazon last quarter. It quadrupled the number of new-to-household customers on Amazon in Q1, it said.

iRobot Corp. (No. 422)

Q1 2024: iRobot said revenue declined 6% to $150.0 million in the first quarter ended March 30. 25% of Q1 revenue was from ecommerce due to greater-than-usual investment in online marketing, iRobot said. It added that that level is likely unsustainable in future quarters.

iRobot also announced Gary Cohen as its new CEO. Cohen previously worked as CEO of Qualitor Automotive and Timex.

Qurate Retail Inc. (No. 18)

Q1 2024: Qurate said revenue declined 4% to $2.64 billion in its fiscal first quarter ended March 31.

Read more on Qurate’s earnings here.

The RealReal Inc. (No. 714)

Q1 2024: The RealReal said revenue grew 1% to $144 million in its fiscal first quarter ended March 31. Gross merchandise value (GMV) grew 2% to $452 million over the same period. 

Customers on the resale website are “healthy overall,” chief operating officer Rati Levesque said. Average order value and average selling price both increased in the quarter, she added.

Revolve Group Inc. (No. 87)

Q1 2024: Revolve net sales declined 3% to $270.6 million in its fiscal first quarter ended March 31. The apparel retailer said the decline was due to less discounting of products than in the 2023 period. However, sales did grow year over year in the last month of Q1 and the first month of Q2, it said.

Revolve executives see an opportunity to grow their footprint in the luxury ecommerce space.

“Challenges among certain of our luxury e-commerce competitors have further accelerated in recent months,” co-CEO Michael Mente said. “The resulting disruption affecting luxury consumers and luxury brands creates a compelling opportunity for a profitable and cash generative company like Revolve to capitalize by investing in strategies to gain market share. We believe there is an opportunity to pursue the millions of effectively abandoned luxury customers that are up for grabs in the aftermath of the recent industry malaise.”

Sally Beauty Holdings, Inc. (No. 399)

Q2 2024: Sally Beauty reported revenue declined 1.1% to $908 million in its fiscal second quarter ended March 31. Sales were hurt by soft traffic and slowing consumer purchase trends due to the inflationary environment, the retailer said. 

Ecommerce sales were $90 million, or about 9.9% of total sales.

Tapestry Inc. (No. 43)

Q3 2024: Tapestry said revenue declined 2% to $1.48 billion in its fiscal third quarter ended March 30. Online sales accounted for more than 25% of revenue and were more than three times as high as pre-pandemic online sales. 

Direct-to-consumer sales declined 4%, but were offset by a 20% growth in wholesale, Tapestry said. The retailer includes brands Coach, Kate Spade, and Stuart Weitzman.

Tempur Sealy International Inc. (155)

Q1 2024: Tempur Sealy reported that revenue declined 1.5% to $1.19 billion in its fiscal first quarter ended March 31. Ecommerce was a particularly strong segment of the business in Q1, with North America sales increasing 7.7% to $124.2 million. Meanwhile, wholesale sales in the region declined 3.4%. Ecommerce remains a relatively small part of the business, though, Tempur Sealy said.

ThredUp Inc. (No. 589)

Q1 2024: ThredUp revenue increased 5% to $79.6 million in the first quarter ended March 31. The resale retailer heavily invested in artificial intelligence (AI) in the quarter, enabling savings of $17 million and a 20% reduction in its workforce. 

“We have launched a new AI search experience and created two new AI-powered tools that allow consumers to thrift any style that inspires them,” CEO James Reinhart said.

He said those AI tools are uniquely beneficial to ThredUp because of its large and constantly changing catalog.

Warby Parker Inc. (No. 351)

Q1 2024: Warby Parker said net revenue grew 16.3% to $200.0 million in its fiscal first quarter ended March 31. That was the highest quarterly growth since 2021, it said. Active customer count also grew, and both increases are due to successful marketing efforts and customer acquisition strategies, Warby Parker asserted.

“Earlier this year, we set out to reaccelerate both glasses and active customer growth,” said co-founder and co-CEO Dave Gilboa. “We’re encouraged to see strength in single-vision glasses as well as efficiencies across media channels, driven by our team’s strong marketing execution. In Q2 and beyond, we’ll continue to invest in customer acquisition while scaling our holistic vision care offering to drive higher customer lifetime value.”

Yeti Holdings, Inc. (No. 129)

Q1 2024: Yeti said net sales increased 13% to $341.4 million in its fiscal first quarter ended March 30. Drinkware sales grew 13%, and coolers grew 15%. Both led to growing sales across direct-to-consumer and wholesale channels.

To meet continued demand, Yeti will introduce more new products this year. It will introduce cast iron cookware this summer and expand its barware items for Father’s Day.

Other recent ecommerce earnings results

Adidas AG

Q1 2024 earnings: Adidas reported preliminary results for its first quarter ended March 31. Revenue grew 4% year over year to 5.46 billion euros. The latest Yeezy drop generated 150 million euros in revenue and 50 million euros in operating profit in the first quarter, Adidas said. Due to better-than-expected results, the retailer increased its 2024 guidance to expect mid to high single-digit growth.

Adidas ranks No. 16 in the Europe Database, which ranks the largest online retailers in the region.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter, and its operating income more than tripled. 

It ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

Read more on Amazon’s earnings results here.

Aritzia, Inc. (No. 154)

Q4 2024 earnings: Aritzia reported that net revenue increased 7% to $682.0 million in its fiscal fourth quarter ended March 3, while comparable sales declined 3%. Retail net revenue increased 14.7%. Meanwhile, ecommerce revenue declined 3.2% to comprise 38.9% of total revenue. Aritzia is investing in updated technology for its website and plans to improve its omnichannel capacity.

“The tremendous opportunity we see in ecommerce is far greater than our recent performance, but we also recognize we’re coming off three years of unprecedented growth, delivering a four year ecommerce net revenue behavior of 34%,” CEO Jennifer Wong told investors. 

Avery Dennison Corp. (No. 319)

Q1 2024 earnings: Avery Dennison said net sales grew 4% to $2.2 billion in the first quarter ended March 30.

“We are off to a strong start to the year. In the first quarter we delivered significant earnings growth, driven by higher volume and productivity gains,” president and CEO Deon Stander said in a written statement. “Materials Group delivered significant volume growth and margin expansion, as downstream inventory destocking subsided and volumes continued to normalize. Solutions Group delivered strong top-line growth, driven by high-value categories, despite apparel imports continuing to be below demand.”

Chewy Inc. (No. 12)

Q4 2023 results: Chewy, Inc. reported that net sales grew in its Q4 and fiscal 2023 ended Jan. 28, 2024, even as pet adoptions declined.

Read more on Chewy earnings here.

Columbia Sportswear Co. (No. 157)

Q1 2024 earnings: Columbia reported net sales declined 6% to $770.0 million in the first quarter ended March 31. Despite the decline, that result exceeded expectations, CEO Tim Boyle said. Direct-to-consumer in-store sales grew year over year, while ecommerce sales declined. That was largely due to promotional activity in 2023 inflating ecommerce sales numbers, he said. Specifically, U.S. DTC sales declined by “mid-teens percent,” Boyle said.

“The overall e-commerce environment remains challenging,” he added.

Costco Wholesale Corp. (No. 6)

Q2 2024 earnings: Costco said net sales grew 5.7% to $57.33 billion in its second fiscal quarter of 2024 ended Feb. 18. Ecommerce comparable sales grew 18.4% in the same period.

Read more on Costco ecommerce sales here.

EBay Inc.

Q1 2024 earnings: EBay revenue grew 2% to $2.56 billion in Q1 ending March 31 while gross merchandise value (GMV) stayed largely flat.

The marketplace ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. 

Read more on eBay’s earnings here.

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

Q2 2024 earnings: Estee Lauder reported net sales grew 5% to $3.94  billion in its second fiscal quarter ended March 31. Skin care made up the largest portion of sales, accounting for $2.06 billion in the quarter. That was an increase of 8% from $1.92 billion in the year-ago period. Makeup sales also grew, up 3% year over year to $1.14 billion. Fragrance sales remained nearly flat at $575 million. Meanwhile, hair care sales declined 3% to $143 million.

Etsy Inc.

Q1 2024 earnings: Etsy revenue grew 0.8% to $646.0 million in its fiscal Q1 ended March 31.

Etsy is No. 20 in the Global Online Marketplaces Database. Its musical instrument marketplace Reverb is No. 42 and used-clothing marketplace Depop is No. 51.

Read more on Etsy’s earnings results here.

Harley-Davidson, Inc. (No. 426)

Q1 2024 earnings: Harley-Davidson said revenue declined 3% to $1.73 billion in the first quarter ended March 31. Global motorcycle shipments decreased 7% year over year in the first quarter, in line with the auto company’s expectations, it said. Accordingly, wholesale shipments declined and sales prices were lower, leading to declining revenue. Revenue grew 12% for the financial services side of the business, despite higher-interest expenses, it said.

Home Depot (No. 4)

Q4 2023 results: Home Depot reported that online sales increased about 2% year over year in its fiscal fourth quarter ended Jan. 28. Meanwhile, total Q4 sales decreased 2.9% year over year to $34.8 billion.

Read more about Home Depot’s earnings here.

Keurig Dr. Pepper Inc. (No. 102)

Q1 2024 earnings: Keurig Dr. Pepper reported that net sales increased 3.4% to $3.47 billion in the first quarter ended March 31. Keurig sales continued to grow among higher-income consumers, while lower- and middle-income consumers are more pressured, the retailer said. Ready-to-drink products represent an area where it can continue growing, it said.

The beverage company also announced incoming CEO Tim Cofer took over the role on April 26 after starting the CEO succession process in September 2023.

LVMH

Q1 2024 results: LVMH reported that total revenue declined 2% to 20.69 billion euros in its fiscal first quarter ended March 31. The wine and spirits category recorded the greatest decline, down 16% year over year. The decline in champagne reflected a continued decrease in post-COVID demand. Meanwhile, other products achieved strong growth in 2023, making results appear weaker this year, LVMH said.

Ecommerce sales grew more slowly than physical retail, but that’s not necessarily a problem, said chief financial officer Jean-Jacques Guiony.

“If products are being sold in stores, we see no necessity to put a lot of them onto the ecommerce and vice versa,” he said. “So basically, I would view the fact that ecommerce is growing less than stores as a good sign of the health of the store channel, which is obviously by far the most important for us.”

LVMH is No. 3 in the Europe Database.

O’Reilly Automotive, Inc. (No. 137)

Q1 2024 earnings: O’Reilly announced that sales grew 7% to $3.98 billion in the first quarter ended March 31. Same-store sales also increased 3.4%, on top of a 10.8% increase in Q1 2023, the retailer said. O’Reilly said the state of the economy plays to its advantage.

“In situations of heightened economic pressures, we believe consumers will continue to prioritize investing to maintain their vehicles, particularly given the significant cost and monthly payment burden of a new or replacement vehicle,” CEO Brad Beckham told investors. “We believe the composition of our sales results support this view of the consumer in the current environment.”

Procter & Gamble Co. (No. 512)

Q3 2024 earnings: Procter & Gamble reported net sales increased 1% to $20.2 billion in its fiscal third quarter ended March 31. The business attributed sales growth across beauty, grooming, home care and baby care segments to pricing increases.

“We expect the environment around us to continue to be volatile and challenging, from input costs to currencies to consumer, retailer and geopolitical dynamics,” chief financial officer Andre Schulten told investors in an earnings call.

Peloton Interactive, Inc. (No. 49)

Q3 2024 earnings: Peloton announced that CEO and president Barry McCarthy would step down, effective immediately. While the company looks for a new CEO, board members Karen Boone and Bruzzo will serve as co-interim CEOs. Peloton revenue declined 3% in its fiscal quarter ended March 31, to $717.7 million. The retailer introduced a cost-reduction plan intended to save $200 million in expenses per year.

Target Corp. (No. 5)

Q4 2023 results: Target revenue grew 1.7% to $31.92 billion in its fiscal fourth quarter ended Feb. 3. Online sales declined 0.7%.

Read more on Target’s earnings here.

Walmart (No. 2)

Q4 2024 results: Walmart said U.S. online sales grew 17% for its fiscal 2024 fourth quarter ended Jan. 31. Its global ecommerce sales grew 23% over the same period, while international ecommerce increased 44%. 

Read more about Walmart’s earnings here.

Wayfair Inc. (No. 10)

Q1 2024 earnings: Wayfair Inc. reported earnings results from its fiscal first quarter ended March 31. Wayfair total net revenue in Q1 declined 1.6% to $2.7 billion.

Read more on Wayfair’s earnings results here.

Ecommerce earnings calendar

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

• Amazon.com Inc.: Feb. 1
• Best Buy Co Inc.: Feb. 29
• Costco Wholesale Corp.: March 7
• The Home Depot Inc.: Feb. 20
• Lowe’s Cos Inc.: Feb. 27
• Target Corp.: March 5
• Walmart Inc.: Feb. 20

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.

The post Ecommerce earnings recap: What you missed from Tapestry, Revolve and more appeared first on Digital Commerce 360.

Why are retailers using partners for last-mile delivery?

Facilitating same-day delivery is quite costly for retailers.

“Startup costs are stratospheric, as are the ongoing costs to run the service, thereby gobbling up profitability,” research firm Forrester said in a December 2023 report.

UPS-owned Roadie interviewed 150 industry leaders at retailers that offer same-day delivery. Most of them said implementation costs were in the six figures, and operational costs grew as the delivery programs grew. 

However, they also noted clear benefits. 80% said it led to higher customer satisfaction, and 70% said offering the service increased sales. Others mentioned customer retention and acquisition, conversion, and lower inventory costs as other perks.

29% of respondents said they used a crowd-sourced delivery platform, like Instacart or DoorDash. Those leaders told Roadie that partnering with one of those vendors has two benefits.

1. It’s easier to get the program running without a minimum volume or capital.
2. It’s flexible and scalable based on demand.

These are nine of the most significant same-day, last-mile delivery partnerships since the start of 2024.

1. Hy-Vee and Instacart

Hy-Vee said it would work with Instacart on same-day delivery, the retailer announced Feb. 8. The grocery chain will use Instacart’s fulfillment-as-a-service (FaaS) capability across its ecommerce channels, including Hy-Vee.com, WholeLotta.com, HyveeDeals.com, ShopPetShip.com and the Hy-Vee app. The relationship with Instacart will allow Hy-Vee to expand its delivery capacity to meet growing demand, it said.

Hy-Vee was able to integrate Instacart’s FaaS into its existing ecommerce operation using an API, the retailer said. Ecommerce operations platform company UpShop facilitated the integration between Hy-Vee and Instacart, the fulfillment operator said.

The grocer ranks No. 182 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

2. Pet Supplies Plus and DoorDash

Pet Supplies Plus teamed up with DoorDash in February to offer same-day delivery for pet supplies from its more than 700 locations. The store’s offerings are part of DashPass, DoorDash’s membership program with $0 delivery fees on orders from certain retailers and restaurants.

“Since launching the Pets vertical in 2020, DoorDash has more than 400,000 pet products available for on-demand delivery,” said Fuad Hannon, vice president of new verticals at DoorDash. 

Pet Supplies Plus is No. 213 in the Top 1000.

3. AWG and Instacart

Instacart expanded its relationship with Associated Wholesale Grocers, Inc. (AWG) to offer same-day delivery and smart shopping carts at more locations in March.

AWG is a cooperative food wholesaler with 1,100 member companies and more than 3,500 locations. The new agreement between the businesses brought Instacart’s ecommerce technology to all AWG locations across 32 states, from the 800 that previously had access.

AWG grocers are now included on Instacart’s app, where consumers can add products to their carts, check out, and receive same-day delivery from an Instacart driver. Orders can also be scheduled up to two weeks in advance.

4. Sally Beauty and DoorDash

DoorDash expanded its relationship with Sephora and added new partnerships with MAC Cosmetics and Sally Beauty in March. Through relationships with these retailers, DoorDash said it will offer customers on-demand delivery of beauty, hair, makeup and nail products in under an hour.

“We see consumers ordering from retail categories more than ever before and trying out new categories earlier in their DoorDash journey,” said Shanna Prevé, vice president of partnerships at DoorDash, in a statement.

“As consumers have higher demand and expectations for convenience and selection, we’re thrilled to connect merchant partners, like Sally Beauty and M·A·C, with people in new ways and unlock potential additional revenue,” she added. “For consumers, we remain hyper-focused on providing unparalleled speed and service to meet their everyday needs, whether it’s the last-minute beauty essentials or the viral must-have new products.”

Sephora is part of LVMH, which ranks No. 3 in Digital Commerce 360’s Europe Database. Sally Beauty ranks No. 339 in the Top 1000. MAC is part of The Estee Lauder Cos. Inc., which ranks No. 41 in the Top 1000. 

5. Lowe’s and DoorDash and Shipt

Lowe’s and DoorDash unveiled a partnership for same-day delivery from the retailer’s 1,700 U.S. stores in April. It marked DoorDash’s first time offering delivery for the home improvement retail category.

“Our collaboration with DoorDash unlocks an opportunity for us to reach new DIY customers who are shopping directly on the DoorDash app, helping them get everything they need for spring,” said Neelima Sharma, senior vice president, digital commerce and technology.

The retailer also partnered with delivery company Shipt this spring to offer delivery from 1,200 locations. 

Lowe’s is No. 11 in the Top 1000.

6. Vitamin Shoppe and Uber Eats

The Vitamin Shoppe and Uber Technologies announced a partnership in April to make the supplement retailer the first to be available via Uber Eats nationwide.

About 700 locations of The Vitamin Shoppe and Super Supplements are available to Uber Eats consumers in the United States.

“The Vitamin Shoppe is a growth-focused business with a digital-first mindset that is continuously transforming the way we serve our customers, by reaching them where and when they want to shop,” said Muriel Gonzalez, president of The Vitamin Shoppe, in a statement. “On-demand, same-day delivery from our stores via Uber Eats provides a fast and convenient way for our customers to access their favorite health and wellness products.”

The Vitamin Shoppe Industries Inc. ranks No. 286 in the Top 1000 Database. 

7. Wakefern Food Corp. and DoorDash

Wakefern added same-day delivery to its 365 supermarket locations through DoorDash. The stores operate under the ShopRite, Price Rite Marketplace, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market banners.

“In addition to our own in-house full-service grocery fulfillment offering, DoorDash joins our digital portfolio providing consumers yet another way to shop Wakefern banners,” said Wakefern president Mike Stigers. “By joining forces with DoorDash, which offers on-demand, fast delivery of grocery staples and household essentials, we can make grocery shopping even more convenient for our shoppers.”

Wakefern ranks No. 411 in the Top 1000.

8. Kohl’s and Instacart

Kohl’s Corp. joined Instacart in May, the retailer announced. As a result, Kohl’s merchandise will be available in as little as an hour through same-day delivery on Instacart. The service is now accessible at all of Kohl’s 1,172 U.S. stores, it said.

Instacart purchases at Kohl’s will be priced the same as in stores. In addition, customers will still be able to accumulate Kohl’s Rewards, it said.

“With Kohl’s as one of the first department stores on our platform, we’re proud to continue expanding our selection beyond grocery, making everyday shopping for our customers easier for their busy lives,” said Blake Wallace, senior director of retail partnerships at Instacart. “We’re committed to offering customers a broad selection of items and ways to get exactly what they need from the retailers they know and love.” 

Kohl’s is No. 23 in the Top 1000. 

9. Uber Eats and Instacart

The two delivery companies teamed up to allow consumers to order from restaurants through the Instacart app from restaurants on Uber Eats.

“Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app,” said Fidji Simo, CEO and chair of Instacart. 

Instacart drivers will continue to fulfill orders from grocery stores and retailers, while Uber Eats drivers will fulfill restaurant orders made through Instacart.

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 ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter, Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

The post New retailers partner with DoorDash, Instacart for last-mile delivery appeared first on Digital Commerce 360.

The AI Innovation Lab will use Microsoft’s Azure OpenAI Service. 

“At ELC, technology is always in support of our enduring strengths of high-quality products and high-touch consumer experiences,” said Jane Lauder, executive vice president, enterprise marketing, and chief data officer at Estée Lauder. “With Microsoft’s generative AI tools and extensive expertise, we are able to leverage ELC’s tremendous data to create more personalized consumer experiences and faster insights to action resulting in increased speed to market and stronger local relevancy. We look forward to continuing our close and collaborative partnership with Microsoft.”

Estee Lauder ranks No. 41 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. It operates cosmetics brands including La Mer, MAC, Too Faced and others.

How Estee Lauder will use generative AI

Estee Lauder shared two specific ways it will use Microsoft’s technology.

First, it worked with Microsoft to create an internal chatbot that uses AI to improve marketing campaigns. The chatbot uses conversational AI to consult Estee Lauder’s database of products and information. Then, marketers can use that data to quickly create new marketing campaigns relevant to different locales, Estee Lauder said.

Estee Lauder is also using Microsoft generative AI in product development and research. The retailer says the technology allows scientists and development specialists to respond to product and ingredient trends more quickly.

“Generative AI represents a significant opportunity for the beauty industry — creating more engaging customer experiences, getting products into the hands of consumers faster, developing new products more efficiently and sustainably, and much more,” said Shelley Bransten, corporate vice president of Global Industry Solutions at Microsoft. “We’re proud to collaborate with The Estée Lauder Companies to provide not only a platform for AI innovation, but also deep partnership to bring these new innovations to life.”

Estee Lauder’s history with AI

The cosmetics retailer isn’t new to AI. Estee Lauder has worked with Microsoft since 2017, it said. In early 2023, it used Microsoft Azure AI to create an AI-powered mobile app for visually impaired consumers.  

The Voice-Enabled Makeup Assistant (VMA) helps visually impaired users apply makeup using voice instruction technology. The AI identifies how makeup is applied based on uniformity and coverage. Then it gives feedback on lipstick, foundation and eyeshadow application with advice on where touch-ups are required. The app is available on Android and iOS in The U.S., U.K. and Ireland, with more markets planned, the retailer said.

Later in 2023, Estee Lauder also worked with Google Cloud on another generative AI venture. The two companies planned to “collaboratively explore AI-powered solutions to better understand consumer sentiment, inform R&D efforts, and translate the magic of prestige beauty brands into best-in-class, high-touch digital experiences,” they said in a statement at the time.

It also used Google large language model (LLM) PaLM 2 to gather data on consumer sentiment through social media and call center operations.

Estee Lauder revenue

Estee Lauder reported net sales grew 5% to $3.94  billion in its second fiscal quarter ended March 31.

Skin care made up the largest portion of sales, accounting for $2.06 billion in the quarter. That was an increase of 8% from $1.92 billion in the year-ago period. Makeup sales also grew, up 3% year over year to $1.14 billion. Fragrance sales remained nearly flat at $575 million. Meanwhile, hair care sales declined 3% to $143 million.

Estee Lauder cited success from Clinique’s debut on the U.S. Amazon Premium Beauty Store, which “greatly exceeded our retail sales expectations,” it said in a press release.

In the preceding quarter, the retailer announced it would lay off 3% to 5% of its global workforce this year. Those job cuts impacted up to 3,100 of the beauty retailer’s 62,000 employees.

Layoffs are part of a multi-year plan to rebuild profit margins in 2025 and 2026, Estee Lauder said. 

Do you rank in our database?

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

Sign up

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

The post Estee Lauder teams up with Microsoft on generative AI for R&D and marketing appeared first on Digital Commerce 360.

“There is not a sustainable business model for us to continue,” Walmart said in a press release. “This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time.”

Walmart will continue operating nearly 4,600 pharmacies and more than 3,000 vision centers, it said. Employees who work at health centers are eligible to transfer to another Sam’s Club or Walmart location or receive severance.

The retailer said it doesn’t have specific closure dates set for each center yet.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top online marketplaces by third-party gross merchandise value (GMV).

Walmart’s history with health centers

The mass merchant opened the first Walmart Health Center in Georgia in 2019. The first center offered primary care, labs, X-rays, EKGs, and other health services “at low, transparent pricing, regardless of customers’ insurance status,” Walmart said at the time.

A second location opened in 2020, and in 2021, Walmart ventured into telehealth too. It eventually reached 51 locations across five states: Arkansas, Florida, Georgia, Illinois and Texas.

As recently as March 2023, Walmart planned to continue expanding its health care footprint. At the time, it announced plans to open an additional 28 health centers in 2024, for a total of 79 U.S. locations. The new locations were planned for Texas, Arizona, and Missouri.

In that announcement, Walmart also noted some changes to the layout of Walmart Health Centers going forward. The retailer said it was changing the physical footprint of the centers to allow patients to spend less time in waiting rooms, and integrating more modern technology.

Other retailers enter health care

While Walmart pulled back its health care investments, other major retailers are stepping further into the space. 

Costco partnered with Sesame, an online health care marketplace targeting consumers with no insurance or high-deductible plans. The marketplace is also available to people who aren’t Costco members, although at a higher rate. 

Customers can access primary care, dermatology, mental health services, and other specialties through the virtual health service. In April, Costco expanded the relationship to offer prescription weight-loss drugs including Ozempic and Wegovy.

“The No. 1 search term of Costco members seeking primary care on Sesame was around weight loss,” Sesame co-founder and CEO David Goldhill said.

Costco members can pay $179 for a three-month weight-loss program including video consults, nutritional guidance and a treatment plan, with extra charges for weight-loss medications.

Amazon is also growing its health care presence with weight-loss drugs. In March, Amazon announced it would carry Eli Lilly medications through its Amazon Pharmacy storefront. Amazon delivers the prescriptions through a deal with LillyDirect, the pharmaceutical company’s direct-to-consumer arm.

Amazon first launched its online pharmacy in 2020. That was two years after the retailer spent $753 million to acquire online pharmacy PillPack.

In 2023, Amazon delved further into health care by completing its $3.49 billion acquisition of primary care provider One Medical. It currently offers telehealth appointments for 41 conditions through Amazon Clinic.

Costco ranks No. 7 in the Top 1000, and Amazon ranks No. 1. Amazon also ranks No. 3 in the online marketplaces database.

Do you rank in our database?

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

Sign up

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

The post Walmart to close health centers and virtual care appeared first on Digital Commerce 360.