The latest data, news and analysis about store-based retailers

Tractor Supply Company’s earnings show net sales increase in Q2

Kevin Williams — Tue, 30 Jul 2024 21:08:26 +0000

Tractor Supply Company announced its Q2 earnings results, registering an increase in sales during Q2 but falling short of analyst expectations.

Tractor Supply, which sells everything from rabbit food to garden tillers and other products with rural vibes, reported that its net sales increased 1.5% to $4.3 billion during its second fiscal quarter of 2024. Meanwhile, net income was up 0.9%.

Tractor Supply ranks No. 93 in the Top 1000 Database, where Digital Commerce 360 ranks the largest North American ecommerce retailers by annual online sales. It is categorized as a Hardware & Home Improvement retailer. As of June 29, 2024, the company operated 2,254 Tractor Supply stores in 49 states. Digital Commerce 360 projects that Tractor Supply’s web sales in 2024 will approach $1.1 billion.

Tractor Supply web sales by year

Tractor Supply Q2 earnings highlights

Compared with the same period a year prior, Tractor Supply’s net income was up 0.9% to $425.2 million in Q2, which ended June 29. That’s up from $421.1 million a year ago. Despite the gain, the result was still lower than what a consensus of analysts expected.

More highlights from the report include:

Comparable store sales decreased by 0.5%.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 4.1% to $994.2 million from $955.4 million during the same period last year.
Operating income was $561.5 million in the second quarter of 2024 compared to $559.3 million in the second quarter of 2023.

CEO calls spending landscape ‘choppy’

During a conference call to discuss Q2 earnings, Tractor Supply CEO Hal Lawton said the company’s customers are dealing with an unfavorable macroeconomic environment.

“Consumer sentiment and consumer confidence are both subdued, and the consumer spending landscape continues to be rather choppy,” Lawton said.

Lawton also credited the quarter’s opening of 21 new Tractor Supply stores and three Petsense by Tractor Supply stores with boosting performance.

“Our new store productivity continues to perform very well,” Lawton stated.

Tractor Supply online results boost loyalty club

The company does not break out sales numbers for online vs. in-store, but Lawton touted TSC’s revamped loyalty program, which has a robust online component. Lawton says that the Neighbors Club loyalty program now has more than 36 million members, 5 million of whom have enrolled over the last 12 months, which has helped retain a loyal corps of customers.

“Our Neighbor’s Club retention rate remains remarkably consistent as our best customers continue to shop us more frequently and remain extremely loyal,” Lawton said, while noting some “disengagement” from non-core customers during problematic macro conditions.

Lawson made no explicit mention in the call of controversy raised during the past quarter when Tractor Supply outlined and then backtracked from its diversity, equity and inclusion (DEI) goals after a backlash from some customers.

Tractor Supply, though, generally does an effective job of knowing its customers, according to Michael Zakkour, founder and chief strategist at retail consulting company 5 New Digital.

“Tractor Supply understands its core consumer very well,” Zakkour told Digital Commerce 360. “Their demographic and the products they sell are better aligned with physical retail, and their focus on new store openings has boosted performance.”

However, Zakkour notes that its online presence is growing and improving.

“For their customers who want to shop online, the focus on improvements to their website and APP has also boosted performance,” Zakkour said.

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Deckers reports growth in Q1 earnings driven by Hoka and Ugg

Beth Duckett — Tue, 30 Jul 2024 18:42:20 +0000

Deckers Brands reported growth across its footwear properties in its Q1 earnings. The company’s first fiscal quarter of 2025, which ended June 30, saw a 22% rise in net sales to $825 million, up from $676 million the previous year. Direct-to-consumer (DTC) net sales, including digital sales, also saw a major boost, climbing 24% to $311 million from $250 million a year ago.

The company’s Hoka athletic footwear brand was the main growth driver, making up two-thirds of its net sales for the quarter.

“The brand is on track to deliver another year of healthy growth with premium products and elevated experiences that enhance our consumer connections,” said Dave Powers, Deckers’ outgoing CEO, during the earnings call.

Deckers Brands web sales by year

Deckers, which also owns Ugg, Teva, Sanuk and Koolaburra, holds the No. 51 spot on Digital Commerce 360’s Top 1000 ranking of the largest online retailers in North America. The company falls under the Apparel & Accessories category. Digital Commerce 360 projects that web sales for Deckers Brands will reach $2.1 billion in 2024.

Deckers Brands Q1 earnings growth led by Hoka and Ugg sales

Hoka set a new record in the company’s first quarter, with revenue surging 30% year-over-year to $545 million. The brand’s DTC revenue, primarily sales from its ecommerce website, grew by 33%.

Powers attributed the surge to high demand for Hoka’s products, including new launches, across the global market.

“From a DTC perspective, Hoka continues to see global gains through consumer acquisition and retention, with particular strength among retained consumers,” he said.

Ugg also delivered strong results in the quarter, with global revenue rising 14% year-over-year to $223 million, according to Powers. The growth was driven by robust full-price sales of key franchises like the Tasman and the Golden Collection, which significantly contributed to the boot brand’s DTC success in both the U.S. and international markets, he noted.

Future outlook and leadership changes at Deckers

Looking ahead, Deckers projects a 10% increase in overall revenue for the fiscal year ending March 31, 2025, reaching $4.7 billion. Hoka is expected to grow around 20%, while Ugg is expected to see mid-single-digit growth.

Powers is retiring as president and CEO on Aug. 1, with Stefano Caroti, the current chief commercial officer, set to take over both positions. Deckers also plans to nominate Caroti to the board at its 2024 annual meeting of stockholders, while Powers will remain on the board through the 2025 meeting.

Shareholders will also vote on a proposed six-for-one forward stock split during the annual meeting on September 9.

In addition, Deckers has reached an agreement to sell its Sanuk brand, which it acquired for $120 million in 2011. Details about the deal, expected to close in August, were not provided.

During the company’s October earnings call, Powers noted Sanuk’s strong product performance but said scaling the brand meaningfully within the Deckers’ portfolio would take too long.

“There’s other things that we think we can invest in, and we think that this is a brand that consumers love,” he said, adding that Sanuk “deserves a good home” versus being the “fourth or fifth brand in our portfolio.”

More Q1 earnings highlights for Deckers

For the quarter ended June 30, 2024, Deckers reported:

Sanuk’s net sales decreased by 28.4%, to $6.9 million from $9.6 million a year ago.
Teva’s net sales fell 4.3%, to $46.3 million from $48.4 million.

Other brands, primarily Koolaburra, saw net sales surge 123.5% to $4 million from $1.8 million.

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Conn’s files for Chapter 11 bankruptcy

Abbas Haleem — Thu, 25 Jul 2024 20:40:46 +0000

Conn’s Inc. has filed a motion for Chapter 11 bankruptcy, requesting emergency relief “not later than July 24, 2024.”

The motion specifically calls for approving and authorizing its debtors to close stores, approve procedures for store-closing sales, and approve “modifications to certain customer programs.”

Those programs include the debtors’ — Conn’s — return policy and acceptance of gift certificates, the filing said.

Conn’s announced June 26 that it received a delinquency notification from Nasdaq regarding its failure to file Form 10-Q for the results from its first fiscal quarter of 2024, which ended April 30. Amid filing delays, the furniture, appliances and electronics retailer, which operates Conn’s HomePlus stores, was seeking refinancing and considering bankruptcy, Bloomberg reported July 1.

Conn’s Inc. web sales by year

Prior to the filing, Conn’s had been growing its online sales for the past five years. For its fiscal year 2024, which ended Jan. 31, its consolidated revenue declined 7.8% year over year to $1.2 billion. The company attributed that drop to a 9.1% decline in total sales and a 3.6% reduction in finance charges and other revenues.

Conn’s bankruptcy

Conn’s continues to operate and manage its properties during the bankruptcy proceedings. The company currently has about 3,800 full-time and 150 part-time employees, according to the filing. It operates 553 retail stores and 22 distribution centers across 15 states, the filing detailed.

Among the pending authorizations requested in the filing, the Conn’s bankruptcy would include “the sale or disposition of the Store Closing Assets free and clear of all liens, clams, and encumbrances.”

Conn’s Inc. is No. 568 in the Top 1000 Database. The Top 1000 ranks North America’s largest online retailers by annual web sales. Within the database, Conn’s falls under the Consumer Electronics category. It also sells furniture and mattresses, home appliances, home office products, accessories, and “seasonal items from leading global brands,” the filing said.

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Petco adds industry veteran as new CEO

Kevin Williams — Tue, 23 Jul 2024 19:02:00 +0000

Petco Health and Wellness Company, Inc. has tapped retail industry veteran Joel D. Anderson to serve as CEO, effective July 29, 2024. In addition, Anderson has been elected to serve on the company’s board of directors.

“I am excited to join Petco at a pivotal time as we reposition the business for a stronger future,” Anderson said in a press release.

Petco ranks No. 86 in Digital Commerce 360’s Top 1000 Database of the largest North American e-retailers by online sales. It is classified as a Specialty retailer in the database. Digital Commerce 360 projects Petco’s total web sales in 2024 will reach $1.25 billion.

Pet web sales by year

Petco’s selection of Anderson as new CEO

Joel D. Anderson, incoming CEO at Petco | Image credit: Petco

“Over the course of his impressive career he has demonstrated the ability to build and lead great teams while creating significant shareholder value,” said Glenn Murphy, executive chairman of Petco’s board of directors. “I look forward to working closely with him as he leads Petco’s initiatives to improve operating and financial results.”

Petco’s first-quarter sales, reported in May, fell 1.7% year over year. The company lost $45 million, compared with a $1.9 million loss during the comparable period in 2023. In response to the losses, the company is implementing a new store operating model to increase productivity. The earnings report highlighted a review of the pricing and assortment strategy underway to improve inventory management. Petco aims for $150 in cost savings by the end of fiscal 2025.

Anderson comes to Petco after leading a turnaround at value retailer Five Below. That followed seven years at Walmart.com, where he became CEO. He will replace Petco’s interim CEO, R. Michael Mohan, as Mohan leaves the role on July 29. Mohan will then chair a new committee for Petco’s board, focusing on value creation.

Mohan took over the interim executive role after former Petco CEO Ron Coughlin resigned in March.

“On behalf of the Board of Directors, I extend our deepest gratitude to Mike for his dedication and leadership,” Murphy stated. “He has made a meaningful impact as our interim CEO over the past few months, effectively stabilizing our operations and setting us on the path for continued improvements in performance.”

Anderson’s retail leadership experience

“Joel’s breadth of experience across stores and ecommerce and the interplay between the two makes him a strong leader for Petco,” Michele Roney, executive president at Mars United Commerce, a global retail and trend consulting company, told Digital Commerce 360. “His proven ability to rapidly scale revenues in complex and niche environments will help the retailer navigate an ever-changing consumer environment.”

Petco has more than 1,500 physical stores in the United States. Still, it has to compete against online giants like Amazon and Walmart.com. In that context, Anderson brings experience in both, Roney explained. She said she believes Anderson can also use Petco’s niche in the pet market to differentiate itself from others.

“The benefits of being a niche retailer in today’s market is the space and permission to be different in what has become a relatively commoditized shopping experience — especially concerning the pet category,” Roney noted, adding that Anderson’s experience should allow him to navigate Petco’s challenges.

“Joel brings a renewed focus and outside perspective on the uniqueness of Petco and can work to improve the relationship between the retailer, its supplier base, and their customers,” she said.

Roney says Petco’s emphasis on brick-and-mortar stores gives it plenty of room to grow. One path may include focusing on a more robust online presence.

“With more consumers shopping online and new revenue models — like retail media — supplementing core retail activities, retail continues to evolve in unforeseen ways,” Roney said.

She expects the challenge for Anderson will be not to get a “fragmented focus” with the physical stores and growing its online business, as they are different entities. One way she sees him having an impact may be through bringing in his own talent pool to help Petco focus on growing its online footprint while freshening up its physical stores.

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Ecommerce earnings recap: What you missed from Johnson & Johnson, Winmark and more

Brian Warmoth — Mon, 22 Jul 2024 17:57:19 +0000

New earnings results are out from retailers in Digital Commerce 360’s Top 1000 list. In the Health & Beauty category, Johnson & Johnson reported year-over-year growth. Results for others, including Birks Group, Goodfood Market and Winmark, were mixed. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated. The database ranks North America’s largest ecommerce retailers by their annual web sales.

This week’s ecommerce earnings takeaways

Johnson & Johnson saw a 4.3% increase in net sales for its second fiscal quarter of 2024.
Resale- and franchise-focused Winmark Corp.’s growth remained flat as overall merchandise sales declined.

Johnson & Johnson (No. 358)

Q2 2024 earnings: Johnson & Johnson reported that net sales grew to $22.4 billion in its fiscal second quarter, which ended June 30. That’s up 4.3% year over year. The company’s earnings do not break out ecommerce sales. However, it did note offerings that boosted sales during the period.

“Johnson & Johnson’s second quarter performance reflects our relentless focus on advancing the next wave of medical innovation and resulted in strong sales and adjusted operational earnings per share growth,” said Joaquin Duato, chairman and chief executive officer at Johnson & Johnson. “With a robust pipeline, upcoming regulatory milestones for Rybrevant and Tremfya, the integration of Shockwave, and continued expansion of newly launched products, including Acuvue Oasys Max 1-Day contact lenses and our Varipulse platform, we have a strong foundation for near and long-term growth.”

Birks Group Inc. (No. 1766)

FY 2024 earnings: The Birks Group announced that net sales increased 13.7% year over year to $185.3 million (CAD) in its 2024 fiscal year that ended June 29, ultimately leading to a net loss of $4.6 million (CAD). The jewelry retailer credited demand for watches and jewelry during the period and noted that it plans to invest in its website and ecommerce platform.

Read more on Birks Group’s earnings here.

Goodfood Market Corp. (No. 538)

Q3 2024 earnings: Goodfood Market Inc. said that net sales decreased 8.5% year over year to $38.6 million (CAD) in its third fiscal quarter of 2024 that ended June 1. Goodfood attributed the drop to a lower number of active customers, even as average order value increased.

The meal solutions company noted that it was optimizing prices, increasing its variety of meal kits and integrating grocery-product add-ons as it looks to improve sales.

“With our strengthened financial position, we enter the fourth quarter, which is typically marked by a seasonal slowdown in business activity as customers spend more time outside of their homes, with the opportunity to build additional momentum on the implementation of our intrinsic and external growth plan,” said Jonathan Ferrari, CEO at Goodfood.

Winmark Corp. (No. 1567)

Q2 2024 earnings: Winmark Corp. recorded nearly flat growth (a 0.6% increase) year over year with $10.4 million in net income for its second fiscal quarter in 2024. Merchandise sales for the quarter fell 30.3% from the same quarter a year earlier to $925,500.

“Year-to-date growth in royalties resulted from higher overall store count and, to a lesser extent, increases in per unit performance,” said Brett D. Heffes, chair and chief executive officer at Winmark.

The company, whose resale-focused franchises include Plato’s Closet, Play It Again Sports and Music Go Round counted a total of 1,336 franchises operating at the end of the quarter.

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.

Aritzia Inc. (No. 154)

Q1 2025 earnings: Aritzia Inc. recorded a year-over-year net sales increase of 7.8% to $498.6 million for its first fiscal quarter of 2025, which ended June 2. In addition, the luxury apparel retailer said its ecommerce net revenue increased 4.2% to $140.8 million for the same period, accounting for 28.2% of its net revenue.

The company has been investing in digital marketing and updated investors on its planned website relaunch for 2024.

“We expect the improved site to go live in the back half of this fiscal year,” Aritzia CEO Jennifer Wong told investors during the Q1 earnings call. “Other initiatives to drive digital include improving our online merchandising, optimizing our omni-channel capabilities, enhancing our international ecommerce site, and developing a mobile app.”

Bassett Furniture Industries Inc. (No. 409)

Q2 2024: Bassett Furniture Industries Inc. reported a 17.1% drop in net sales year over year to $83.4 million for its second fiscal quarter of 2024, which ended June 1. The decrease came as the company took an $8.5 million operating loss for the period and a restructuring plan that includes shuttering its Noa Home ecommerce business.

“Bassett Furniture has a long history of weathering economic cycles, such as the inflationary environment and slow housing market we’re experiencing in 2024 — factors that led to soft demand in our second quarter,” said Bassett Furniture CEO Robert H. Spilman in the retailer’s earnings announcement. “The business climate has remained difficult through the first six months of this year and may not improve in the near future.”

Helen of Troy Limited (No. 190)

Q1 2025 earnings: Helen of Troy Limited said that net sales declined 12.2% year over year to $416.8 million in its first fiscal quarter of 2025, which ended May 31. The housewares and home furnishings retailer also lowered its annual outlook as it proceeds with its Project Pegasus restructuring plan.

“Project Pegasus continues to provide us with fuel to fund our initiatives and organizational focus to capture opportunities and leverage our scale,” said Helen of Troy CEO Noel M. Geoffroy. “We also invested in new talent and next-level data, analytics and capabilities to improve our effectiveness and productivity across the enterprise.”

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:

Carvana Co.: July 31
Adidas AG: July 31
Amazon.com: Aug. 1

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Macy’s halts takeover negotiations with Arkhouse

Beth Duckett — Wed, 17 Jul 2024 18:51:52 +0000

Macy’s Inc. ended seven months of takeover talks with Arkhouse Management and Brigade Capital Management, citing a lack of a “compelling” proposal with guaranteed financing. On Monday, Macy’s announced its board’s unanimous decision to end the negotiations, which could have ultimately taken the retailer private.

“At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process,” Macy’s lead independent director Paul Varga said in a statement.

Arkhouse and Brigade did not respond to Digital Commerce 360’s requests for comment. Macy’s replied, stating it had no additional comments beyond the news release.

Macy’s ranks No. 16 in Digital Commerce 360’s Top 1000 Database of the largest North American e-retailers by online sales. Macy’s is also the second-largest Apparel & Accessories retailer in the database. Digital Commerce 360 projects Macy’s total web sales in 2024 will reach $7.30 billion.

Macy’s web sales by year

Arkhouse’s takeover attempt at Macy’s

Arkhouse and Brigade tried to buy out Macy’s for months. In December, the investor group offered $21 per share, or $5.8 billion, which the retailer rejected. The firms recently increased their bid to $24.80 per share, or $6.9 billion, up from $24 per share in March.

When Macy’s rejected Arkhouse and Brigade’s initial bid, it triggered a proxy battle that ended in April when the retailer added two new board members backed by the real estate investment firm. Macy’s also agreed to open its books for due diligence.

After stating that it had gone “well beyond what is customarily required,” Macy’s requested a definitive proposal by June 25. However, on June 26, Arkhouse and Brigade submitted a “check-in” letter offering $24.80 per share in cash. Macy’s said it had already deemed that offer “not compelling” and the accompanying financing papers were not sufficient.

Challenges department stores face

Arkhouse and Brigade’s bid focused on monetizing Macy’s real estate assets rather than revitalizing its retail operations. That potential fate opened the door to comparisons with other struggling department store names, such as Sears and Neiman Marcus, which recently reached a deal to be acquired by Hudson’s Bay Co.

“The truth is that whatever problems Macy’s has, they will not be solved by activist investors treating the business as an ATM and selling off real estate for short-term gain,” Neil Saunders, GlobalData managing director, wrote in a LinkedIn post.

Saunders told Digital Commerce 360 that ending the talks shows Macy’s strength, signaling that the bid isn’t in the company’s best interests and that management’s current plans offer better long-term value for investors.

Macy’s ongoing turnaround plan

In February, Macy’s unveiled its “A Bold New Chapter” strategy, which includes closing 150 underperforming stores through 2026. Macy’s also plans to open about 15 new Bloomingdale’s and 30 new Bluemercury luxury stores over the next three years.

CEO Tony Spring, who began in February, said the initiatives are starting to show results.

“While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the Company can return to sustainable, profitable growth, accelerate free cash flow generation and unlock shareholder value,” Spring said in a written statement.

Most recent quarterly earnings from Macy’s

In its fiscal quarter ended May 4, Macy’s reported a 2.7% year-over-year decline in net sales to $4.8 billion and a 1.2% decrease in comparable sales, including online. Macy’s said it will provide updates on “A Bold New Chapter” in its second fiscal quarter earnings report next month.

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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 Aritzia, Helen of Troy and more

Brian Warmoth — Mon, 15 Jul 2024 19:03:34 +0000

New earnings results are out from retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America. The luxury apparel boutique Aritzia saw growth as it prepared for a website relaunch. Meanwhile, problems in the furniture and housewares and home goods spaces appeared front and center as two other retailers updated investors on their restructuring plans. 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

Aritzia Inc. reported a 7.8% rise in net sales for its first fiscal quarter of 2025.
Helen of Troy continues to deal with challenges, confronting a 12.2% decline in net sales in its fiscal first quarter.

Aritzia Inc. (No. 154)

The company has been investing in digital marketing and updated investors on its planned website relaunch for 2024.

Bassett Furniture Industries Inc. (No. 409)

Helen of Troy Limited (No. 190)

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.

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.

Read more on Amazon’s earnings results here.

Conn’s Inc. (No. 568)

Q1 2024 earnings: Conn’s, Inc. announced on June 26 that it received a delinquency notification from Nasdaq regarding its failure to file Form 10-Q for the results from its first fiscal quarter of 2024, which ended April 30. Amid filing delays, the furniture retailer was seeking refinancing and considering bankruptcy, Bloomberg reported July 1.

The Home Depot Inc. (No. 4)

Indigo Books & Music Inc. (No. 416)

No longer public: Toronto-based retail Indigo Books & Music Inc. went private, resulting in the company being delisted from the Toronto Stock Exchange on June 4. It did not report Q4 and fiscal 2024 results.

MillerKnoll Inc. (No. 211)

Q4 2024 earnings: MillerKnoll Inc. reported that net sales fell 7.1% year over year to $888.9 million in its fourth fiscal quarter of 2024, which ended June 1. The furniture company, known for its Herman Miller and Knoll brands, also reported that sales for its full fiscal 2024 were down 11.2% to $3.6 billion from a year earlier.

Results accounted for the closure of MillerKnoll’s Hay ecommerce channel in North America, as well as the shuttering of its Fully business.

“Turning to retail, we delivered organic order growth of 1% year over year despite the tough macroeconomic conditions our industry still faces,” MillerKnoll CEO Andi Owen said during the company’s earnings call. “We’re continuing to do the work to drive orders in the short term while optimizing our retail engine for significant long-term sales growth.”

Target Corp. (No. 5)

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:

Carvana Co.: July 31
Adidas AG: July 31
LVMH: July
Amazon.com: Aug. 1

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Macy’s promotes senior leader to become chief information officer

Brian Warmoth — Mon, 15 Jul 2024 19:00:56 +0000

Macy’s Inc. will install a new chief information officer (CIO) in August, promoting internally as its current CIO departs. Keith Credendino, currently senior vice president of technology product development, customer experience at Macy’s, will take over the role.

Credendino’s appointment comes during a transitional year for the retailer as its CEO, Tony Spring, works on a turnaround plan. That plan has already faced challenges from investors. Most recently Macy’s faced a proxy fight that ended in new board members being appointed.

Macy’s ranks No. 16 in Digital Commerce 360’s Top 1000 Database. The Top 1000 ranks North America’s leading retailers by online sales. Macy’s is also the second-largest Apparel & Accessories retailer in the database.

Keith Credendino’s new role as Macy’s CIO

Incoming Macy’s CIO Keith Credendino | Image credit: Macy’s

Credendino will replace Laura Miller as CIO at Macy’s in its Corporate Strategy Group, effective Aug. 4. He will report directly to Adrian V. Mitchell, the chief operating officer and chief financial officer at Macy’s.

“As our new CIO, Keith will continue to simplify and modernize our technology stack as part of our company’s growth strategy, ‘A Bold New Chapter,'” Mitchell said. “There is still much work to be done and Tony Spring, our chairman and chief executive officer, our Board of Directors, and I are confident that with Keith’s authentic, collaborative, and results-oriented leadership style, he will help lead Macy’s, Inc. into the future as an even more agile company, responsive to today’s discerning consumer.”

In leading the group as CIO, Macy’s noted that Credendino will be focused on the ongoing transformation to a data-driven organization focused on modernizing systems, delivering efficiencies and improving the overall omnichannel customer experience.

Laura Miller’s retirement

As Miller retires from the CIO post, Macy’s called her “instrumental in modernizing technology systems, operations, and the company’s omnichannel digital offerings to enhance customer and colleague experiences.”

“The entire Macy’s, Inc. family wishes Laura well on her retirement and thanks her for the many accomplishments over her transformative tenure,” said Mitchell.

Miller has been at Macy’s since 2021. Prior to that, she served as CIO at InterContinental Hotels Group after holding leadership positions at First Data Corporation and TD Ameritrade.

Credendino’s background

Credendina arrived at Macy’s in 2022. Among his accomplishments so far, Macy’s lists customer experience improvements at Macy’s and Bloomingdale’s, as well as supporting the launch of the Macy’s online marketplace. In addition, he is credited with improving the macys.com and bloomingdales.com websites and the macys.com wedding registry.

His previous roles have included positions at the restaurant company Inspire Brands, The Home Depot, InterContinental Hotels Group and Cox Enterprises.

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Guitar Center adds new head of technology to its leadership team

Kevin Williams — Fri, 12 Jul 2024 16:57:57 +0000

Guitar Center announced the appointment of a new chief technology officer, selecting a niche retail industry veteran to freshen up the consumer shopping experience and bring new tools to the chain’s digital operations.

The retailer tapped Adolfo Rodriguez for the role of executive vice president, chief technology and information officer. Rodriguez will be responsible for the end-to-end technology vision and execution for Guitar Center’s business. Now, in hiring Rodriguez, Guitar Center hopes to deploy disruptive technologies while reimagining its customer experience. He will also report directly to Guitar Center CEO Gabe Dalporto.

His arrival on the executive team follows other high-level Guitar Center hires this year. Recently, Guitar Center brought in Michael Martin to lead retail and sales operations. It also hired Kristin Shane to head merchandising and marketing.

Guitar Center is No. 108 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest online retailers in North America. Digital Commerce 360 categorizes Guitar Center as a Toys & Hobbies retailer.

Guitar Center’s new head of technology

Adolpho Rodriguez, executive vice-president, chief technology and information officer, Guitar Center | Image credit: Guitar Center

Rodriguez has experience in niche product categories. He came to Guitar Center from Advance Auto Parts, where he helped implement internal technology innovations. Previously, he also served in leadership roles at both Citrix and IBM. In addition, he brings a personal passion for music, having co-founded a band called Mind the Gap that performs for charity events.

“I am thrilled to join Guitar Center at such a pivotal time in its history,” Rodriguez said. “As a passionate musician and advocate for leveraging technology to drive business growth, I am eager to blend my professional expertise with my personal experience.”

Dalporto praised Rodriguez’s past experiences as an asset to Guitar Center, which has over 300 stores nationwide.

“His expertise in core retail systems and processes and his passion for transforming the customer experience make him a perfect fit at Guitar Center,” Dalporto said. “We are confident that we will reach new heights under his leadership and deliver groundbreaking solutions to our customers.”

Guitar Center’s strengths

Guitar Center is a survivor in the “category killer” space, which it shares with retailers like PetSmart, Party City and others that grew through dominating niche categories.

Mike Allmond, a longtime retail veteran and co-founder and vice president of the apparel and specialty chain Lover’s Lane, said Guitar Center’s personnel moves this year are hitting all the right notes.

“Retail has had to adapt to rapid disruption from ecommerce businesses and direct-to-consumer sales,” he stated. “In our niche, it has become critical to leverage technology and find the right people to manage a growing tech stack. From my 30-plus years in retail, Guitar Center is doing the right things to remain relevant.”

Allmond underscored that Guitar Center’s in-store offerings provide the chain with certain advantages.

“The specialized customer experience helps customers select the right products, something that general merchandise retailers most likely won’t be able to do,” Allmond said. Guitar Center can also build on its core business by offering lessons, instrument rentals and other music-centric experiences.

“In a retail landscape that is seeing a lot of bankruptcies and store closures, it is survival of the fittest, and the fittest are going to be those that continue to innovate at every level,” Allmond said.

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