Sporting Goods | Digital Commerce 360

REI selects its new CTO from within

Kevin Williams — Wed, 17 Jul 2024 18:07:11 +0000

Outdoor retailer REI Co-op didn’t have to look too far for its new chief technology officer (CTO). The retailer tapped Guillaume Ledieu, who was already working for the company, to step up into the role on its leadership team.

Ledieu joined REI in 2023 as vice president of foundation technology. He came to REI after stints at McCormick & Company, Glatfelter and Black & Decker.

REI Co-op ranks No. 64 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. Digital Commerce 360 classifies REI as a Sporting Goods retailer in the Top 1000. Digital Commerce 360 also projects that REI’s ecommerce sales will reach $1.65 billion in 2024.

REI web sales by year

Who is REI’s new CTO, and what will he do?

Guillaume Ledieu, CTO at REI | Image credit: REI

“Guillaume will be responsible for all technology at REI — delivering on current and future member, customer and employee needs, and helping to create a more modern and efficient REI,” said REI President Eric Artz in a press release.

According to the National Retail Cooperative Association, REI — with 18 million lifetime members — is the largest customer-owned retail co-op in the U.S.

REI’s tilt toward tech comes as the co-op tries to recover from struggling sales. In a letter to company employees earlier this year, REI reported it lost $311 million in 2023. Revenues were $3.76 billion in 2023, down 2.4% from the previous year. This year, REI also closed distribution centers and made layoffs. REI faces stiff competition from other chains in the same space, such as Bass Pro Shops and Cabela.

Replacing Dan Shull as REI’s CTO

“Since joining the co-op last year, my passion for the outdoors and my commitment to enabling the co-op’s mission have grown even stronger,” Ledieu said. “Joining REI was more than a career move; it was a personal project to be part of something bigger. I am incredibly excited about serving the co-op in this new capacity.”

REI’s previous CTO, Dan Shull, left the co-op July 12, opening the opportunity for Ledieu to step in.

Technology strategy at REI

Retail IT experts see Ledieu’s elevation to CTO as a smart strategic move for the company. Juan Pellerano, the chief marketing officer at the ecommerce platform Swap, says that one of the areas he expects Ledieu to focus on is REI’s Re/Supply program, which resells used goods.

“Many brands we work with are looking for support in this area of circular commerce,” Pellerano said. “We expect this trend to continue growing to the point that it becomes standard practice for brands by 2030.”

Doubling down on their tech game will also allow REI to cultivate member loyalty in more ways.

“Because they consider themselves a ‘co-op’ and offer perks to members,” Pellerano explained, “I expect the CTO role to help further develop that program and better connect their cooperative to the brand.”

Michael Zakkour, founder and chief strategist at retail consulting company 5 New Digital, said REI is well-positioned to leverage tech for a turnaround.

“The first step should be developing an ‘immersive commerce’ strategy,” Zakkour said. “The REI website is, like most retail websites, static, two-dimensional, and catalogue-like in nature. REI can use 3D product description pages, video product demos, augmented reality, shoppable blogs and videos, and livestreaming commerce to make the site more interactive, entertaining and 3D, which will increase traffic, conversions, AOV [average order value] and LTV [lifetime value].”

Zakkour says technology and a new CTO can help revive REI’s sales if the company examines the current retail and ecommerce landscape and implements the necessary strategies, tactics and technology.

“Consumer journeys and preferences have been radically altered by choice and algorithmic shopping, but all of the ingredients for REI to create an amazing consumer experience are in there,” Zakkour said.

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Ecommerce earnings recap: What you missed from Lovesac, Signet Jewelers and more

Brian Warmoth — Mon, 17 Jun 2024 17:05:51 +0000

New earnings results are out from retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America. Their results highlighted challenges in the current environment for consumers. Academy Sports + Outdoors, The Lovesac Company, and Signet Jewelers were among the latest to share results. Here’s the ecommerce earnings summary you need to know for this quarter. Read more ecommerce earnings coverage here.

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

This week’s ecommerce earnings takeaways

The Lovesac Company reported a 6.1% decrease year over year in net sales for the quarter, focusing on upcoming launches to boost results later in the year.
Signet Jewelers shared that net sales fell 9.4% year over year but indicated that a new loyalty program was being received well by customers.

Academy Sports + Outdoors (No. 144)

Q1 2024 earnings: Academy Sports + Outdoors net sales fell 1.4% to $1.36 billion in its first fiscal quarter of 2024 ended May 4. Steve Lawrence, the chief executive officer at Academy Sports + Outdoors said “customers remain under pressure in the current economic environment” but said the sporting goods retailers was “pleased that we drove a positive comp in our new stores and omnichannel business.”

The Lovesac Company (No. 389)

Q1 2025 earnings: Lovesac reported that net sales decreased 6.1% year over year to $132.6 million for its first fiscal quarter of 2025, which ended May 5. For the same period, online sales fell 9.0% to $36.6 million.

Lovesac CEO and founder Shawn Nelson called the quarter’s results “in line to slightly above the high end of our expectations” and characterized them as “continued outperformance compared to the industry.”

In the meantime, he expressed optimism about the furniture retailer’s omnichannel efforts and upcoming product launches.

“We believe through our omni-channel infinity flywheel, designed for life platform and advantaged supply chain, we are well positioned to continue to deliver results and capitalize on the tremendous opportunity still ahead,” Nelson said in a release statement. “With the recent launch of our PillowSac Accent Chair, we are continuing to expand our offering and see opportunity to further widen the aperture with exciting innovative launches yet to come.”

Signet Jewelers Ltd. (No. 55)

Q1 2025 earnings: Signet Jewelers net sales fell 9.4% to $157.2 billion in its first fiscal quarter of 2025 ended May 4. Signet CEO Virginia Drosos cited positive customer responses to the jewelry retailer’s “new product offerings and loyalty program,” saying the company expects “continued momentum in the second quarter, leading to a positive same-store sales inflection in the second half of Fiscal 25.”

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.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter. Meanwhile, 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.

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.

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.”

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.

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.

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.

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.

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.

Ecommerce earnings calendar

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

Levi Strauss & Co.: June 26
H&M: June 27
Nike: June 27

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Academy Sports + Outdoors ecommerce sales rise, total sales drop

Abbas Haleem — Mon, 17 Jun 2024 17:05:22 +0000

Academy Sports + Outdoors sales dropped 1.4% year over year in its fiscal first quarter ended May 4.

Comparable sales declined 5.7% in the same period. Meanwhile, ecommerce sales had back-to-back quarters of positive growth, according to CEO Steve Lawrence. Academy Sports also announced an exclusive partnership with DoorDash that offers its consumers same-day delivery from its stores.

The retailer has 285 stores in 19 states. It opened two new stores during its fiscal Q1. Looking ahead, Academy Sports plans to open another 12 to 14 stores in the second half of the year.

Lawrence said in a statement that the retailer’s Q1 results reflect its consumers remaining “under pressure in the current economic environment.”

In an earnings call with investors, Lawrence explained that part of Academy Sports’ core strategy is to grow its ecommerce sales to reach 15% penetration over the next five years. To achieve that target, he said the retailer’s goals are “to streamline and elevate the omnichannel shopping experience, offer expanded assortments online, and improve our fulfillment speed.”

Academy Sports + Outdoors ranks No. 144 in the Top 1000. The database is Digital Commerce 360’s ranking of North America’s top online retailers by their annual web sales.

Academy Sports + Outdoors ecommerce sales in Q1

In its fiscal Q1, Academy Sports sales totaled $1.36 billion. That’s down from $1.38 billion in the year-ago quarter.

Academy Sports ecommerce sales grew 8% year over year. Additionally, Academy Sports ecommerce sales comprised 9% of total sales in Q1 2024. That compares to 8.2% in the year-ago period. Buy online, pick up in store (BOPIS) and ship-from-store sales represented more than 80% of Academy Sports ecommerce sales.

Lawrence said that “highlights the true omnichannel approach that we’ve taken to growing this business.”

He added that there are three primary sales drivers regarding the retailer’s customers:

Newness
Value
Driving traffic during key periods

Academy Sports also seeks to push its My Academy rewards program by expanding buying power for customers. That includes a welcome offer of 10% off a customer’s next purchase of up to $200. It also includes free shipping on purchases of more than $25. That compares with a $50 minimum for free shipping for non-rewards members. In addition to expanding buying power, Lawrence said those in the program will have faster checkout both online and on its app, as well as “insider access to personalized offers, deals and products, and a birthday reward.”

Academy Sports partnership with DoorDash

As of June 10, consumers can shop from Academy Sports via the DoorDash app. Consumers can order items for same-day delivery from all Academy Sports locations. Those locations are also available on DashPass, DoorDash’s membership program that offers members a $0 delivery fee and reduced service fee on eligible orders.

Chad Fox, executive vice president and chief customer officer, said in a statement that Academy Sports is excited to give its customers “another convenient way to get the products they need quickly.”

“Academy Sports + Outdoors is continually looking for ways to help our customers get to the fun faster, and we believe this partnership with DoorDash will provide them with a new option to get the gear they need,” Fox said in the statement.

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JD Sports announces plan to acquire Hibbett in US expansion

Mary Meisenzahl — Tue, 23 Apr 2024 20:35:27 +0000

JD Sports Fashion plc reached an agreement to acquire Hibbett, Inc., the retailers jointly announced on April 23.

JD Sports will acquire all outstanding shares of Hibbett stock at $87.50 per share, totaling about $1.1 billion. That’s a 21% premium over the price of Hibbett’s stock at closing on April 22.

“Today is a significant milestone for JD Sports as we take this transformative step as a global leader in the sports fashion industry through this transaction with Hibbett,” said Régis Schultz, CEO of JD Sports. “We’re thrilled to acquire Hibbett | City Gear, combining two of the most respected athletic retail brands in the United States, as we continue to strategically expand our global multi-brand platform. With Hibbett’s highly complementary footprint, this transaction represents a logical next step in our strategic growth plans, further enabling us to meet the dynamic demands of consumers globally.”

JD Sports is headquartered in Bury, England, with more than 3,300 stores worldwide. Acquiring the Birmingham, Alabama-based Hibbett and its nearly 1,200 stores will allow JD Sports to continue growing its U.S. presence, the retailer said.

JD Sports is No. 26 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region. Hibbett is No. 303 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers.

Details of JD Sports’ acquisition of Hibbett

The Hibbett Board of Directors unanimously approved the acquisition agreement, it said. The transaction is expected to close in the second half of 2024. That’s dependent on approval from Hibbett stockholders and regulators.

Once the deal goes through, Hibbett will operate under JD Sports and cease being a publicly traded company. It will retain its headquarters in Alabama. Mike Longo will stay on as CEO, and executive vice president of merchandising Jared Briskin will take over as chief operating officer.

JD Sports said the acquisition would add to its revenue in the first fiscal year and contribute $25 million in cost savings.

“The transaction with JD Sports will create immediate, certain and substantial value for Hibbett stockholders while ensuring that our brands are well-positioned to continue to serve the customers and communities that have always been the central focus of Hibbett’s business,” said Anthony Crudele, chairman of the Board of Directors of Hibbett. “The Board unanimously agreed that this transaction is the best path to maximize the value of Hibbett, and I am proud of what this company and our outstanding team have accomplished for all stakeholders.”

JD Sports will fund the deal with $300 million in cash and another $1 billion in funding from existing bank facilities, it said.

Hibbett’s financials

In its fourth quarter of fiscal 2024 ended Feb. 3, Hibbett reported that net sales grew 1.8% to $466.6 million. Brick-and-mortar comparable sales declined 9.2%. Meanwhile, ecommerce sales grew 6.9% over the same period. Ecommerce represented 18.9% of net sales in the quarter.

For the full year ended Feb. 3, Hibbett said net sales grew 1.2% to $1.71 billion. Ecommerce sales increased 4.1% in the year, to account for 16.2% of annual sales.

The sports retailer forecasted that fiscal 2025 sales will grow up to 2% over 2024 sales.

JD Sports eyes US growth

JD Sports cited Hibbett’s fiscal 2024 revenue in its presentation on the merger to investors. In addition, it noted “strong brand positioning” and “significant store presence” as ways Hibbett will benefit JD Sports.

Specifically, Hibbett will give JD Sports a foothold in the Southeast and Midwest U.S. That’s “highly complementary” to JD Sports’ other brands with established presences on the East and West coasts, it said.

The British retailer has had a U.S. presence since 2018, which it expanded in 2020 with the acquisition of Shoe Palace. The U.S. is the world’s largest sportswear market, and an attractive place to continue investing, it said. U.S. sportswear sales topped $121 billion in 2023, more than four times higher than E.U. sales, JD Sports said.

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Soccer Post acquisition of Soccer Pro expands US presence to 47 stores

Abbas Haleem — Tue, 19 Mar 2024 14:54:21 +0000

One soccer specialty retailer has acquired another. Soccer Post Holdings, LLC, the largest soccer specialty retailer in the United States, has acquired Soccer Pro Inc.

The acquisition of Soccer Pro will give Soccer Post 47 specialty stores across the U.S.

Soccer Pro Inc. — not to be confused with SoccerPro.com — was founded in 1988. Soccer Pro Inc. operates retail locations across Northern California, whereas SoccerPro.com was founded in 2004.

“We are thrilled to complete the acquisition of Soccer Pro, expand our presence in Northern California, and welcome Soccer Pro to the Soccer Post family,” said Blake Sonnek-Schmelz, CEO of Soccer Post, in a March 13 statement. “We have respected the Soccer Pro team for a long time and look forward to working with them to best serve soccer communities in Northern California.”

Soccer Post has sold gear for more than 30 years. It says it has “established itself as the go-to destination for soccer families and one of the leading national omnichannel specialty retailers across e-commerce, physical stores, and institutional channels.”

In 2022, private equity firm TZP Group invested in Soccer Post. Sales from the 81 sporting goods retailers in the Top 1000 remained essentially flat in 2022 at $22.46 billion. That was 0.04% — $100 million — more than in 2021. The Top 1000 is Digital Commerce 360’s database ranking North America’s largest online retailers.

“It’s an exciting day for the Soccer Pro team and the Northern California soccer community,” said Bronek Gasior, president and cofounder of Soccer Pro, in the statement. “Joining Soccer Post will help us better serve our local teams, families, and players.”

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Ecommerce earnings recap: What you missed from Ulta, Dollar Tree and more

Mary Meisenzahl — Mon, 18 Mar 2024 18:25:13 +0000

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. Retailers across industries cited continued pullback in discretionary spending from consumers. Here’s the ecommerce earnings summary you need to know from this quarter. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000.

Allbirds (No. 344)

Allbirds reported net revenue declined 14.5% to $72.0 million in the fourth quarter ended Dec. 31. It also announced a new CEO following the disappointing quarter.

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022. Read more about Amazon’s earnings here.

Build-a-Bear Workshop Inc. (No. 703)

Build-a-Bear total revenue increased 2.9% to $149.3 million in its fiscal fourth quarter ended Feb. 3, 2024. In the same period, consolidated ecommerce demand declined 8.8%. That refers to online orders fulfilled through retail stores or the company’s warehouse. In the full fiscal year, total revenue grew 3.9% to $486.1 million while consolidated ecommerce demand decreased 4.9%. Build-a-Bear replatformed and upgraded its website in 2023, and online sales have tripled since 2018 even with some softening in 2023, it said.

Costco Wholesale Corp. (No. 6)

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.

Dick’s Sporting Goods (No. 32)

Dick’s said net sales grew 7.8% to $3.88 billion in its fiscal fourth quarter ended Feb. 3. Comparable sales grew 2.8%. Net sales increased 5.0% to $12.98 billion in the full fiscal year.

“Digital business remains really strong, but we’re not going to get into more details on that,” CEO Lauren Hobart told analysts in an earnings call. She also said stores fulfilled over 80% of online orders in 2023.

Dollar Tree, Inc. (No. 189)

Dollar Tree reported that consolidated net sales grew 11.9% to $8.63 billion in its fiscal fourth quarter ended Feb. 3. 2023. Net sales increased 8.0% to $30.6 billion.

“Persistent inflation and reduced government benefits continued to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s customer base,” CEO Rick Dreiling told investors. The retailer plans to close 970 underperforming Family Dollar stores, with 600 closures planned in the first half of fiscal 2024.

Fossil Group Inc. (No. 190)

Fossil reported net sales declined 16% to $421 million in its fiscal fourth quarter ended Dec. 30. Full-year net sales also declined 16%, to $1.41 billion. The retailer reported a full-year operating loss of $143 million, compared to $1 million in 2022. Fossil plans to close around 50 underperforming locations in 2024, it said. It will also completely exit the smartwatch market to focus on traditional watches and jewelry.

Home Depot (No. 4)

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.

Kohl’s Corp. (No. 23)

Kohl’s reported net sales declined in both its fourth quarter and fiscal 2023 ended Feb. 3, 2024. In addition, the retailer previewed plans to expand baby product offerings through new Babies R Us stores, which are scheduled to open within some Kohl’s locations.

Petco Health and Wellness Company, Inc. (No. 92)

Petco reported that net revenue increased 6.1% to $1.67 billion in its fiscal fourth quarter ended Feb. 3, 2024. CEO Ron Coughlin also stepped down from his role.

Target Corp. (No. 5)

Target revenue grew 1.7% to $31.92 billion in the fourth quarter ended Feb. 3. Online sales declined 0.7%.

Ulta Beauty Inc. (No. 46)

Ulta net sales increased 10.2% to $10.6 billion in its fiscal fourth quarter ended Feb. 3. The retailer said strong sales were due to comparable sales growth and good performance from new stores. 2023 net sales grew 9.8% to $11.2 billion. Online sales had “high single-digit growth” in the quarter, the retailer said. Ulta also said it increased member use of its mobile ecommerce app by 30% in Q4.

Vera Bradley Inc. (No. 278)

Vera Bradley revenue declined 6.1% to $93.0 million in the fourth quarter ended Feb. 3. Net revenue fell to $470.8 million for the fiscal year.

“Customers responded to some of our latest product collaborations and to our newer product offerings like leather, but overall, they continued to be more discriminating with their discretionary spending in light of the macroeconomic environment,” CEO Jacqueline Ardrey said in a written statement. Vera Bradley is focused on growing its digital presence in 2024, she said.

Walmart (No. 2)

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%.

Williams-Sonoma Inc. (No. 22)

Williams-Sonoma said comparable brand revenue declined 6.8% to $2.28 billion in the fourth quarter ended Jan. 28. Comparable brand revenue declined 9.9% for the fiscal year to $7.75 billion. The retailer did not share specific information about online sales. However, it continues to invest in its ecommerce experience and artificial intelligence tools, Williams-Sonoma said.

Zumiez Inc. (No. 454)

Net sales increased 0.6% to $281.8 million in its fiscal fourth quarter ended Feb. 3, Zumiez said. The quarter ended with a net loss of $33.5 million, compared to net income of $11.4 million in the year-ago period. Full-year net sales declined 8.6% to $875.5 million. Net loss was $62.6 million.

“As was the case throughout fiscal 2023, we faced headwinds in the fourth quarter, including highly promotional activity across the soft lines retail sector and an increasingly selective consumer pressured by the multiyear inflationary impact on discretionary income,” CEO Rick Brooks told investors.

So what does it mean?

Dollar stores have been winners as inflation pushed consumers to tighten budgets and search for deals. Now, Dollar Tree is also feeling the pinch of pickier consumers and planning to close hundreds of stores.
Struggling retailers are willing to oust CEOs to try to turn things around, as evidenced by Petco and Allbirds in the last week.

Ecommerce earnings calendar

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

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Ecommerce earnings recap: What you missed from Crocs, Hasbro and more

Mary Meisenzahl — Mon, 19 Feb 2024 18:44:26 +0000

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. Retailers reported mixed results across industries including apparel, toys and sporting goods. Here’s the ecommerce earnings summary you need to know from this quarter. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022. Read more about Amazon’s earnings here.

Costco Wholesale Corp. (No. 6)

Costco said net sales grew 6.1% to $56.72 billion in its first fiscal quarter of 2024 ended Nov. 26, 2023. Ecommerce comparable sales grew 6.3% in the same period. E-gift cards, snacks and pet items were all strong in the ecommerce channel, the retailer said.

Crocs Inc. (No. 104)

Crocs reported that revenue grew 1.6% to $960 million in its fiscal fourth quarter ended Dec. 31. Direct-to-consumer sales, including ecommerce, grew 6.8%, while wholesale declined 4.6%. Revenue grew 11.5% to $3.96 billion for the full year.

CEO Andrew Rees says he expects personalization to be a major trend Crocs can capitalize on going forward. He pointed to Jibbitz sales, which grew 17% in 2023 to $250 million in sales.

Hanesbrands Inc. (No. 277)

Hanes reported net sales declined 12% to $1.3 billion in its fiscal fourth quarter ended Dec. 30. Activewear sales declined 24% in the quarter. For the full year, sales declined 9.6% to $5.6 billion.

“Our fourth-quarter performance did not meet our expectations as the sales environment proved to be more challenging than expected,” CEO Steve Bratspies said in a statement.

Hasbro Inc. (No. 555)

Hasbro said revenue declined 23% to $1.2 billion in its fiscal fourth quarter ended Dec. 31. Revenue declined 15% for the year to $5.0 billion. In both periods, digital gaming grew but was offset by declines in consumer products and entertainment segments. Hasbro attributed some of the entertainment segment decline to lower film and TV revenue from strikes in the entertainment industry in 2023.

“The consumer remains value conscious and we anticipate entertainment will be less of a tailwind in the year ahead, behind a reduced box office slate,” CEO Chris Cocks said.

Shopify Inc.

Shopify revenue and gross merchandise volume (GMV) both increased in the ecommerce platform provider’s Q4, which ended Dec. 31, 2023. Its revenue and GMV both increased for the full fiscal year, too.

45 retailers in the Top 1000 use Shopify as an ecommerce platform. Read more about Shopify’s earnings.

Target Corp. (No. 5)

Third-quarter sales declined 4.9% for the mass merchant, to $25 billion from $26.12 billion in its fiscal third quarter ended Oct. 28. Meanwhile, Target online sales decreased 6% year over year.

Moreover, Target’s online sales declined 6.7% year over year for the first nine months of its fiscal year. Read more about Target’s earnings here.

Walmart Inc. (No. 2)

Walmart reported that U.S. online sales grew 24% for its fiscal 2024 third quarter ended Oct. 27. Global ecommerce sales grew 15% over the same period, while international ecommerce declined 3%.

U.S. comparable sales grew 4.9%, and total revenue grew 5.2% to $160.8 billion. Read more about Walmart’s earnings here.

Yeti Holdings Inc. (No. 135)

Yeti reported sales increased 16% to $519.8 million in its fiscal fourth quarter ended Dec. 30. DTC sales grew 11%, and wholesale increased 26%.

Full-year sales grew 4% to $1.66 billion. Sales through Amazon were strong, the retailer said, although it did not participate in Amazon’s October Prime sales event.

“The channel continues to prove effective in reaching both new and existing customers on the platform,” CEO Matt Reintjes said. Amazon makes up about 25% of DTC sales, Yeti said. However, higher fees and freight costs negatively impacted margins, the retailer said.

So what does it mean?

Amazon has the power to make or break retailers that rely on online sales, as evidenced by Yeti. The retailer is feeling the pinch of higher fees, and it relies on the 25% of DTC sales that go through Amazon.
The toy industry remains challenged. Hasbro fared worse than competitor Mattel, which forecasted further industry declines in 2024.

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.: Dec. 14
The Home Depot Inc.: Feb. 20
Lowe’s Cos Inc.: Feb. 27
Target Corp.: March 5
Walmart Inc.: Feb. 20

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

The Future of Ecommerce and a Deep Dive into Apparel and Sporting Goods

Digital Commerce 360 Staff — Fri, 16 Feb 2024 18:48:10 +0000

For the first time, this comprehensive Report predicts the growth of American-based online retailers, projected through 2025, and provides an in-depth analysis of category performance and expert commentary from our Research team.

It also offers an insider’s look at category performance and expert insights into two key segments: Apparel & Accessories and Sporting Goods.

Digital Commerce 360 breaks down how each category has performed and how it is expected to perform through 2025 based solely on activity for the Top 2000 companies headquartered in the U.S.

It also includes:

an overview of the state of U.S. ecommerce and looks ahead to the growth expected in the next two years
ecommerce traffic; shopper demographics; spending; future forecasting
15+ charts and graphs on the state of U.S. ecommerce

Compliments of Luminos Labs

Here’s a peek at some of the data we’ve analyzed:

The post The Future of Ecommerce and a Deep Dive into Apparel and Sporting Goods appeared first on Digital Commerce 360.

Under Armour ecommerce increases 2% in Q3

Abbas Haleem — Fri, 09 Feb 2024 20:01:52 +0000

Echoing comparable results from its fiscal second quarter, Under Armour Inc. reported 2% growth in ecommerce revenue during its fiscal 2024 third quarter, which ended Dec. 31, 2023.

Under Armour ecommerce represented 45% of total direct-to-consumer revenue in the quarter, the company announced Feb. 8. As a whole, Under Armour DTC sales increased 4% to $741 million. Part of that increase came from 5% growth of in-store revenue.

Meanwhile, Under Armour wholesale revenue decreased 13% to $712 million.

Total third-quarter Under Armour revenue decreased 6% to $1.5 billion, in line with the company’s outlook. Operating income was $70 million, and net income was $114 million. Meanwhile, Under Armour inventory decreased 9% to $1.1 billion.

Under Armour is No. 97 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales.

Under Armour ecommerce sales

President and CEO Stephanie Linnartz said in a call with investors that the retailer is working to improve mobile speed, search algorithms and product description pages, among other functionality fixes. She said the retailer’s ecommerce division has done “great work” to improve conversion and have a more functional website and Shop App.

“We need for ua.com and our Shop App to be the most premium expression of our company,” Linnartz said. “It’s our largest storefront when you think about it. So we are going to reduce our dependency on promotions.”

That could reduce the brand’s revenue, she added, saying it will drive profitability.

“Simply put, ua.com will become a showcase for our brand,” Linnartz said.

Under Armour revenue by region

In North America, Under Armour revenue declined 12% year over year to $915 million in Q3. Under Armour revenue in Europe, the Middle East and Africa (EMEA) grew 7% to $284 million. Asia-Pacific revenue grew as well, up 7% to $212 million. In Latin America, Under Armour revenue grew 9% to $70 million.

UA Rewards program continues to grow

Nearly 3 million members have enrolled in Under Armour’s loyalty program, UA Rewards, “which is well ahead of the target” for fiscal 2024, Linnartz said.

Members have purchased premium products more frequently than non-members program’s first few months, she said.

Under Armour earnings

For the fiscal third quarter ended Dec. 31, Under Armour reported:

Under Armour revenue decreased 6% to $1.49 billion.
Net income decreased to $114.1 million from $121.6 million in the year-ago quarter.
Under Armour ecommerce revenue grew 2%. The retailer did not attach a dollar amount to the growth.

For the nine months ended Dec. 31, Under Armour reported:

Revenue decreased to $4.37 billion from $4.50 billion in the year-ago period.
Net income grew to $232.3 million from $216.2 million in the prior-year’s period.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Under Armour ecommerce update.

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Fanatics appoints three new executives

Mary Meisenzahl — Fri, 02 Feb 2024 14:39:02 +0000

Fanatics Commerce announced the appointments of three new executives on Jan. 31. Fanatics Commerce is the design, manufacturing and selling arm of Fanatics Inc., which sells 1.5 million sports-related SKUs across more than 1,000 different brands.

Fanatics ranks No. 57 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Fanatics new appointees

The retailer appointed Stephen Dowling as president of the international segment. Dowling is tasked with growing the company outside of North America, based out of Fanatics’ Manchester, United Kingdom, office. Fanatics operates more than 80 offices, manufacturing facilities, and fulfillment centers around the world, with a recent push for international development, it said.

Dowling joined Fanatics from Adidas, where he had worked since 2017, according to his LinkedIn profile. Since 2021, Dowling served as senior vice president of digital growth at Adidas, overseeing a $5 billion direct-to-consumer ecommerce business. Previously, he worked as the global head of direct-to-consumer ecommerce at Unilever.

Adidas ranks No. 16 and Unilever ranks No. 68 in the Top 1000 Europe database.

The retailer also appointed Valerie Love as chief people officer. Love previously worked as senior vice president of human resources at The Coca-Cola Company and held HR positions at Johnson & Johnson (No. 371 in the Top 1000) and General Motors.

Justin Tsai will lead Fanatics Commerce in the newly created chief product officer role. Tsai was previously an operating executive at technology investment firm Silver Lake. Prior to that role, he spent nearly eight years in product management and growth at GoDaddy.

Fanatics Commerce CEO on the news

“I am thrilled to welcome Stephen, Valerie and Justin to Fanatics Commerce, all of whom will play an invaluable role as we work toward elevating the experience of being a fan across all corners of the world,” Fanatics Commerce CEO Andrew Low Ah Kee said in a statement. “All three are highly regarded executives who bring a wealth of knowledge, expertise, and energy to the Fanatics Commerce business that will help propel us into our next chapter.”

All three appointees will report to Low Ah Kee, who became CEO of Fanatics Commerce in September 2023. He joined from real estate ecommerce platform OpenDoor and previously worked at GoDaddy. Low Ah Kee replaced former Fanatics Commerce CEO David Mack, who retired in August.

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