Canadian Ecommerce | Digital Commerce 360

Watches and jewelry power sales in Birks Group earnings despite loss

Kevin Williams — Mon, 22 Jul 2024 13:00:17 +0000

The Birks Group posted year-over-year sales growth of 13.7% for its fiscal year that ended on March 30, crediting strong demand for watches and jewelry in its full-year earnings report.

That increase led to net sales of $185.3 million (CAD) and gross profit of $73.6 million for the same period. For the same period, however, the company recorded a net loss of $4.6 million (CAD). That was smaller than the net loss of $7.4 million (CAD) that it saw in 2023.

Birks Group earnings for fiscal 2024

For its full fiscal year, Birks Group saw an increase in comparable store sales of 7.5%, and an improvement in gross profit of 8.2%. It also reported a positive operating income.

In addition to robust product demand, Jean-Christophe Bédos, president and chief executive officer of Birks Group, touted enhanced customer experience at the store level for boosting sales.

“We are pleased with the store renovation projects that were undertaken last year at our Chinook and Laval stores, which resulted in higher sales post opening,” Bédos said, adding that the company is continuing to invest in product mix and customer experience.

Among risks and uncertainties cited in forward-looking statements, the company noted that it plans to “evaluate the productivity of existing stores, close unproductive stores and open new stores in new prime retail locations, and invest in its website and ecommerce platform.”

Digital Commerce 360 reached out to The Birks Group for more comment and context but did not hear back.

Birks ranks No. 1766 in Digital Commerce 360’s Top 2000 Database of the largest North American e-retailers by online sales. Digital Commerce 360 classified Birks in the Jewelry category.

Inflation and other conditions

Bédos commented that the strong sales are especially noteworthy given the inflationary headwinds that consumers have been facing.

The Birks Group is a staple of the luxury jewelry market in Canada, operating 24 stores under the Birks brand in most major metro markets in Canada. They also operate stores under the Brinkhaus, Graff and Patek Philippe nameplates. Birks jewelry is also available at some U.S. retailers, such as Saks Fifth Avenue.

Other highlights from Birk’s annual earnings report included:

Selling, general and administrative (SG&A) expenses in fiscal 2024 were $65.7 million (CAD), or 35.5% of net sales. That compares to $66.1 million (CAD), or 40.6% of net sales in fiscal 2023, a decrease of $0.4 million (CAD).
The earnings report cited that the main drivers of the decrease in SG&A expenses in fiscal 2024 include lower marketing costs of $1.3 million (CAD) and lower non-cash stock-based compensation expenses of $2.0 million (CAD) due to the fluctuations in the Company’s stock price during the fiscal year.
The company’s earnings before taxes interest and depreciation (EBITDA) for fiscal 2024 were $10.0 million (CAD), an increase of $6.2 million (CAD), compared to an EBITDA of $3.8 million (CAD) for fiscal 2023.

The company’s reported operating income for fiscal 2024 was $1.2 million (CAD), an increase of $5.0 million (CAD), compared to a reported operating loss of $3.8 million (CAD) for fiscal 2023.

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Increased US Customs enforcement presents de minimis implications for ecommerce

Brian Warmoth — Thu, 06 Jun 2024 19:48:14 +0000

U.S. Customs and Border Protection (CBP) announced new action as part of an effort to curb exploitation of de minimis rules for small-value ecommerce orders. At issue for these imports are activities within the scope of the agency’s Entry Type 86 Test and the treatment of Section 321 of the U.S. Tariff Act of 1930.

How CBP proceeds could have implications for international retailers, including China-originated shipments ordered through Shein and Temu. The companies fell under scrutiny by the U.S. House Select Committee on the Chinese Communist Party in 2023, along with other companies.

During the investigation, the committee looked at the current de minimis environment for imports. An update in 2016 allowed that a single person on one day could import articles with a total value of up to $800 without formal customs declarations. That de minimis threshold allows shipments to avoid certain import duty and tax obligations. It was raised from a previous level of $200.

“Temu and Shein alone are likely responsible for more than 30 percent of all packages shipped to the United States daily under the de minimis provision, and likely nearly half of all de minimis shipments to the U.S. from China,” the bipartisan committee’s report claimed.

Shein is No. 2 in Digital Commerce 360’s Asia Database ranking ecommerce retailers in the region by online sales. The online apparel retailer was valued at $66 billion in May 2023 when it closed its latest funding round.

PDD Holdings owns Temu, which launched in 2022 and isn’t yet reflected in the database. PDD also owns Pinduoduo, which operates an app-only marketplace for Chinese consumers. Because it doesn’t operate an ecommerce website, Pinduoduo is not included in Digital Commerce 360’s Asia Database.

How will US Customs enforce de minimis rules for ecommerce?

U.S. de minimis imports | Image source: U.S. International Trade Commission

“While balancing our economic security and trade facilitation mission with our law enforcement responsibilities, CBP is taking action to ensure compliance and minimize the exploitation of the small package, or de minimis, environment,” said Troy Miller, acting commissioner at CBP, in a statement released May 31. “While the majority of brokers, carriers, and supply chain businesses that participate in CBP’s Entry Type 86 Test are compliant with applicable laws, we are enhancing our enforcement efforts to ensure that all participants are held accountable when they are not.”

The U.S. International Trade Commission published a briefing in November 2023. Its author concluded that most imports using the de minimis standards came from China.

“The majority of these imports, shipped by postal and express delivery services, are retail products purchased online,” the report stated. “Section 321 imports have been the key channel for Chinese business-to-consumer (B2C) online retailers that ship direct from factories or distribution centers in China to U.S. consumers.”

It also cited those imports as a source of interest in Congress.

“The large volume and fast growth of these imports from China since 2018 has led to increased Congressional scrutiny and proposed legislation to modify what some have called an outdated program not suited to the current trade environment of surging cross-border e-commerce,” the report found.

Implications for Shein and Temu

In addition, the International Trade Commission briefing stated that Chinese ecommerce firms had “exploited” the increased U.S. de minimis level and minimized inspections. It also characterized the outcome for “Chinese e-commerce providers” being increased U.S. market share.

“In particular, Shein and Temu, online Chinese fast fashion retailers, reportedly accounted for over 30 percent of U.S. de minimis imports in 2022,” the briefing stated. “Shein has maximized the direct-to-consumer business model and it eclipsed leading U.S. firms in the category in 2022, with U.S. revenues growing from under $500 million in 2018 to over $3 billion in 2022. Temu’s business model also relies heavily on U.S. de minimis treatment.”

Already, CBP has taken action against an unknown number of brokers that it found to be posing compliance risks.

“To date, CBP has suspended multiple customs brokers from participating in the Entry Type 86 Test after determining that their entries posed an unacceptable compliance risk,” Miller said.

Those brokers will be eligible for reinstatement. However, they must demonstrate to CBP that they have “developed and implemented a remedial action plan,” he explained.

Shein’s potential IPO in London

Shein reportedly filed confidentially for a public offering in the U.S. last November. However, those plans face obstacles, including regulatory scrutiny in the U.S. and in China, where it was founded. Instead, the company has since shifted talk to the U.K. for a possible London-based public offering. That filing could come any day, Sky News reported on June 3.

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Nissan Canada puts better digital commerce for vehicle buyers on a fast track

Mark Brohan — Thu, 30 May 2024 19:50:59 +0000

Nissan Canada, a subsidiary of vehicle maker Nissan Motor Co. Ltd., is driving toward a better ecommerce experience for consumers and dealers.

This is the first step towards an entire end-to-end experience, allowing customers to buy anytime, anywhere.

Nissan Canada supports 209 independent Nissan dealerships, including 143 electric-vehicle-certified dealers, and 39 Infiniti dealerships across Canada. It sold 92,000 vehicles in 2023.

Now, Nissan Canada is rolling out a revamped ecommerce platform to generate even more car sales — and give consumers even more options to buy and finance a vehicle online.

The new ecommerce platform enables customers to reserve their desired vehicle with a 100% refundable deposit of $500 or $1,000.

Other features let consumers:

Build and price new vehicles online.
Filter search results by categories such as budget, number of seats, and other specialized metrics.
Book a test drive for a vehicle at home or at a dealership.
Search for available inventory.
Compare pricing with similar vehicles from other competing manufacturers.

“We have observed increased interest and reservations for vehicles aimed at this demographic, particularly for the Sentra and Kicks, and it is important to mention this is the first step towards an entire end-to-end experience, allowing customers to buy anytime, anywhere,” says a Nissan Canada spokesperson.

Overall, Nissan worldwide is spending $200 million to upgrade its digital commerce infrastructure, according to a recent story in Automotive News.

Nissan USA sold 900,000 vehicles last year, including 201,747 in the fourth quarter of 2023.

But it’s unclear if or when Nissan USA will update its ecommerce platform.

“Ecommerce is part of Nissan’s global customer experience strategy, but countries have autonomy to create their own solutions that adjust to market needs,” the spokesperson says.

Nissan Canada is retooling ecommerce now because customers want more options to buy vehicles online, the spokesperson adds.

“According to Google’s research, 50% of Gen Z and Millennials are willing to buy vehicles online, and ecommerce provides our customers with 24/7 access to a Nissan showroom,” he says. “Ecommerce will also be a powerful tool for bringing electric vehicles (EVs) and their accessories to our customers as we transition to a more electrified portfolio.”

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Ted Baker holds closing sale after bankruptcy filing

Mary Meisenzahl — Tue, 14 May 2024 13:31:12 +0000

Ted Baker Canada is holding store-closing sales across select locations after filing for bankruptcy in April.

The retailer operates Ted Baker in Canada, Ted Baker Limited in the United States, Brooks Brothers in Canada, and Lucky Brand in Canada. Ted Baker was founded in the U.K. It has locations across North America, Europe and the Middle East.

Sales are only available at retail locations, Ted Baker said.

“As of May 10, 2024, online shopping is no longer available for the time being, and all sales are final across all of the Company’s retail locations,” the retailer said in a statement.

Authentic Brands Group, which also owns Forever 21 and Aeropostale, acquired Ted Baker for $253.5 million in 2022.

Ted Baker is No. 261 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.

Which Ted Baker locations are closing?

Sales will take place at all 31 Ted Baker locations in the U.S. and nine Canadian locations, the retailer said. The retailer has locations in California, Florida, Georgia, Illinois, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Texas and Washington.

Eight Brooks Brothers Canada stores and seven Lucky Brand Canada stores will also hold liquidation sales. Both are concentrated in Ontario. Brooks Brothers and Lucky stores in the U.S. will not be impacted.

All items will be priced up to 30% off original prices, Ted Baker said. All purchases are final sale, with no returns.

Ted Baker bankruptcy

On April 24, Ted Baker filed for insolvency in the Ontario Superior Court of Justice. On the same day, it filed for Chapter 15 bankruptcy in United States Bankruptcy Court for the Southern District of New York to have the Canadian proceedings recognized in the U.S.

A month earlier, the men’s fashion chain entered insolvency in the U.K. — the country’s version of bankruptcy.

Ted Baker attributed many of its problems leading to bankruptcy to its European partners. Specifically, the filing mentions No Ordinary Designer Label, an operating partner in Europe.

In the filing, Ted Baker addressed several reasons it was filing for bankruptcy.

Supplier delays: No Ordinary Designer Label was responsible for paying suppliers for Ted Baker Canada. When Ted Baker Canada paid the European partner for merchandise, they did not pay suppliers on time because of their own financial troubles, the filing said.
Accelerating payments: Leading up the U.K. bankruptcy, suppliers and manufacturers began demanding upfront payments from Ted Baker Canada.
Delays in the new tech stack: As part of the Authentic Brands acquisition, Ted Baker Canada had to invest in new technology quickly. Then, delayed migration to the new tech stack during the busy season exacerbated supply chain problems, the retailer said.
Ecommerce issues: Ted Baker Canada was unfairly compensated for giving up the TedBaker.com URL to Authentic Brands Group, the filing said.
Poor sales performance: Sales from January 2024 to April were trending 30% below the previous year, in part due to supply chain disruptions.

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Top 2000 Database

Matt Love — Wed, 27 Mar 2024 20:08:54 +0000

Discover the Power of North American Ecommerce with Our All-New Top 2000 Database

Introducing a new database option to satisfy the increasing demand for a more expansive and comprehensive analysis of North America’s online retailers. The Top 2000 Database provides an extensive ranking and thorough data analysis of the leading online retailers based in North America. These retailers are ranked from 1 to 2000 based on yearly web sales and collectively account for over $1 trillion of global ecommerce.

Here’s what you’ll find:

- Market Overview: Gain insights into the entire North American ecommerce market, including industry growth and emerging retailers. Discover the hundreds of companies outside the mainstream making significant strides.

- Unparalleled Data: Access a wealth of financial and digital performance metrics, including web sales, live rankings, HQ company information, marketing performance, and marketplace(s) presence.

- Enhanced Data: Explore sub-categories, track trends of technology stacks, omnichannel features, marketplace presence, website traffic analysis and shopper demographics.

Sample view from the 2024 Top 2000 PRO Level Database, with these data points shown: 2024 Ranking, 2024 Web Sales, 2023 Web Sales, 2022 Web Sales, 2023 Web Sales Growth, Average Ticket, Conversion Rate, Merchandise Category, Merchant Type. Subscribers can select from 100+ datapoints to show, and PRO users have download to Excel capabilities.

Make Informed Decisions

Whether you’re an investor, retailer, or service provider, this data empowers you to make strategic decisions based on the latest trends and insights across the entire North American ecommerce landscape.

What’s Included

Take a look and see which plan is right for your business needs:

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mdf commerce acquisition takes company private

Mark Brohan — Tue, 19 Mar 2024 15:22:12 +0000

A public e-procurement services company that services local and state government organizations is going private. Mdf commerce has been acquired for C$255 million (US$189 million) by KKR, a global investment firm.

The deal is subject to shareholder approval. Mdf commerce is a Canadian provider of ecommerce and e-procurement services to public sector organizations — primarily in the U.S. It has approximately 6,500 public sector buying organizations using its applications and services for e-procurement.

“We are excited to strategically partner with KKR to accelerate our expansion and scale our industry-leading platform even further,” says mdf commerce CEO Luc Filiatreault. “We look forward to leveraging their relationships, resources, and expertise as we execute on our strategy and explore new projects and opportunities that will improve mdf commerce’s service offering and continue growing market share.”

Acquisition takes mdf commerce private

KKR is investing in mdf commerce through its Ascendant Strategy, which invests in middle-market businesses in North America.

“We look forward to the enormous opportunity ahead for the mdf commerce e-procurement platform as governments increasingly embrace digital solutions,” says KKR partner John Park.

For its third quarter of fiscal 2024, which ended Dec. 31, Vancouver, Canada-based mdf commerce posted revenue of $30.2 million. That represented a decrease of $1.5 million — or 4.6% — from $31.7 million in Q3 fiscal 2023. Net loss was $4.2 million for the third quarter of fiscal 2024. That compares with net earnings of $15.1 million in 2023, which included a $22.9 million gain on the disposal of InterTrade, an electronic data interchange (EDI) and B2B integration program for ecommerce platforms.

InterTrade was acquired by SPS Commerce in October 2022.

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3 ways AI transforms the ecommerce customs declaration process

Emily Newton — Mon, 12 Feb 2024 14:00:18 +0000

Emily Newton

A smooth customs process is essential for getting ecommerce goods to their destinations in the expected time frames. However, standard customs forms are extremely detailed, with dozens of fields to fill. People are increasingly interested in how artificial intelligence (AI) could streamline things.

1. Completing Customs Forms More Efficiently

Even conscientious people make errors when providing information on customs documents. That might mean they put details into the wrong fields, use the wrong tariff codes to classify ecommerce documents, or make other mistakes, ultimately extending the time frames for parcels reaching their destinations or resulting in the packages getting returned to the senders.

Many optical character recognition tools have AI features to improve their functionality. People can use these options to pull data from electronic paperwork automatically and use it for customs forms.

Phlo Systems is a digital forwarder based in the United Kingdom working on a chatbot to fill out customs forms. Training is underway and responses have about an 80% accuracy rate, showing the solution’s potential. As of November 2023, the company’s CEO and founder expected to complete customs forms with the tool in three to six months.

Although AI can shorten the time necessary to complete customs forms, humans should always supervise the process and double-check the results. Well-trained algorithms are not perfect, so computing power and human oversight are an excellent combination to assist those dealing with exported products.

2. Linking Customer Purchases to Customs Form Data

Businesses may also expand the functionality of existing ChatGPT tools that bring AI to ecommerce, making them improve customs documents, too. Technology ecommerce brand Newegg released a customer-facing ChatGPT tool in July 2023 that suggests products for people wanting to build computers based on details they input about budget, performance requirements and other specifics.

The tool compiles all the options into a list people can review before checking out at the site. It is easy to imagine an accompanying AI product Newegg team members could use to populate customs forms based on what a customer ultimately purchases from the suggested list. Then, the items are more likely to be classified and described correctly on the customs forms. Tariff classifications determine duty rates and taxes on imports, making their accuracy critical.

Ecommerce leaders could also use AI to track trends that enable more accurate customs data. Perhaps a large percentage of overseas shoppers purchase a specific in-demand item and nothing else. AI might accelerate the process by automatically populating the product-specific customs form fields in such cases. Then, there is less to do because people only need to check the information that varies with each customer.

3. Stopping False Declarations and Counterfeit Goods

Possibilities also exist for customs agents to use AI tools to highlight abnormalities associated with illegal goods or items declared incorrectly. Artificial intelligence excels at processing large quantities of information and catching things humans would miss. Many banks use it to monitor for fraudulent transactions because it can detect those instances more accurately than people

If people make false declarations on customs documents, they typically do that to reduce their import tax and duty-related obligations. Many border patrol agents use artificial intelligence to assess which shipping containers to open for further inspection.

Some ships reach ports bearing 24,000 containers, making it impossible to inspect them all. However, the customs officials working at a Belgian port rely on predictive AI models to flag which ones to check. The algorithms make decisions based on customs declarations and data from goods previously requiring inspections.

Even so, illegal goods can slip past border agents, which may result in counterfeit products reaching ecommerce sites. More companies are responding by using or offering AI tools to combat these emerging circumstances.

One enterprise specializing in the luxury goods and sneaker markets built an artificial intelligence-driven product to compare photographs of legitimate items with those sold online. The software compares approximately 2,000 to 4,000 characteristics so consumers or retailers can feel more confident about authenticity.

Some ecommerce marketplaces could use counterfeit protection as a selling point to attract new customers. Suppose first-time visitors to a shopping website sees a banner informing them that all products above a specific monetary value receive anti-counterfeit screenings before getting shipped to recipients. Such a claim gives consumers peace of mind, particularly before buying high-value, unique or collector’s items.

Will Artificial Intelligence Improve Customs Processes?

AI for customs declarations and processing is still in the early stages, with decision-makers from many businesses still in the planning process. However, as more of them try real-world applications, artificial intelligence should make a bigger and lasting impact on paperwork and goods movement. The results could assist ecommerce companies with administrative tasks associated with import and export paperwork, plus support border patrol officials with spotting suspicious cargo or incorrectly declared products.

About the author:

Emily Newton reports on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Whole Foods will be available on Instacart in Canada

Brian Warmoth — Thu, 08 Feb 2024 17:28:59 +0000

After Amazon acquired Whole Foods, the grocer’s presence on Instacart became an early casualty. The companies worked together as far back as 2014, but Instacart eventually found itself competing with Amazon’s own grocery-delivery ambitions. In Canada, however, Whole Foods is back on Instacart, with its own storefront on Instacart.ca.

Amazon’s Whole Foods working with Instacart in Canada

Instacart announced the new addition to its app and website on Feb. 7, including delivery availability for 14 Whole Foods Market stores in the Vancouver, Victoria, Toronto and Ottawa metro areas.

Amazon 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 2023 third-party gross merchandise value (GMV).

“Our mission at Instacart is to create a world where everyone has access to the food they love, and working with beloved retailers like Whole Foods Market helps us make that mission a reality,” said Chris Rogers, chief business officer at Instacart, in a released statement. “With this launch, we’re proud to welcome Whole Foods Market Canada to the Instacart marketplace, making same-day delivery in as fast as 30 minutes available to their loyal Canadian customers.”

Whole Foods on Instacart availability

Whole Foods, meanwhile embraced the delivery option, framing it as a win for customers.

“We strive to create the best shopping experience for our customers both in stores and online, including finding ways to provide convenience without sacrificing quality,” said Rick Bonin, senior vice president of operations at Whole Foods Market. “We’re excited to work with Instacart in Canada to provide our shoppers with a quick and easy way to get their favorite high-quality foods and products delivered directly to their doorstep.”

The chain will look to benefit from access to tens of thousands of Instacart users in Canada as the deliveries begin, according to Instacart’s press release.

“Both companies are incredibly passionate about providing an exceptional experience to customers, and we’re excited to help Whole Foods Market make its fresh produce, pantry staples, and so much more available to millions of Canadians through Instacart,” said Rogers.

Participating locations

Initially, 11 Whole Foods stores will participate, and three more will follow. Instacart promotes delivery in as little as 30 minutes in some circumstances. Delivery for Whole Foods orders over 35 Canadian dollars will be free for Instacart+ subscribers.

In addition, Instacart touted the use of its recently announced artificial intelligence-based features for order recommendations, recently announced at CES. The app serves orders for groceries, as well as alcohol and prescriptions.

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Earnings recap: What you missed from Joann, Designer Brands, and more

Mary Meisenzahl — Fri, 09 Jun 2023 16:23:26 +0000

Apparel, sports, and jewelry retailers in Digital Commerce 360’s Top 1000 list of ecommerce retailers in North America reported quarterly earnings this week. These are the highlights you need to know. Read more earnings coverage here.

Academy Sports and Outdoors (No. 136)

Net sales were down 7.3% year over year for the first quarter to $1.38 billion. The decline was due to fewer transactions and smaller ticket size, president Michael Mullican told investors. The retailer did not disclose sales data for ecommerce.

Academy Sports and Outdoors plans to open 120 to 140 stores in the next five years, with the goal of using them to grow omnichannel sales and use them as distribution centers, Mullican said.

Chico’s FAS Inc. (No. 108)

Ecommerce sales were “up low single digits and outpaced stores on very strong traffic,” at Chico’s for the first quarter, chief financial officer PJ Guido told investors.

Online sales made up just under half, 41% of revenue over the last 12 months, Guido said.

Designer Brands (No. 78)

Net sales for the shoe retailer declined 10.7% to $742.1 million. Designer Brands did not share specific information about ecommerce sales in the quarter. The retailer is on track for its goal of doubling owned brands between 2021 and 2026, with the recent addition of Keds.

Five Below Inc. (No. 584)

Five Below grew sales 14% to $726 million in the first quarter, the retailer reported. The company didn’t share specific ecommerce sales, but Five Below’s social media presence is growing and driving traffic, CEO Joel Anderson told investors. Recent influencer campaigns also drove engagement, he said.

Joann Inc. (No. 307)

Ecommerce sales at Joann declined 1% year over year for the first fiscal quarter. Net sales and comparable sales both declined more quickly, down 4% over the previous year. Online sales made up 11.8% of revenue in the quarter. Sewing and craft online sales grew during the period, while craft technology sales declined, the retailer said.

App downloads have also grown to 15 million, the retailer said, and BOPIS has been especially popular with customers. Joann didn’t disclose what percentage of sales were made through the app.

Kirkland’s Inc. (No. 510)

Ecommerce sales represented 27% of total sales in Q1, down from 28% in Q1 of the previous year, Kirkland’s reported. Total sales across stores and online were down about 4%, driven by lower traffic in stores and online. Stores performed slightly better than online channels, Kirkland’s told investors.

Rent the Runway Inc. (No. 258)

Apparel rental company Rent the Runway reported Q1 revenue grew 10% year over year to $74.2 million. The retailer reached 145,220 active subscribers, a 15% increase over Q4.

Rent the Runway is also implementing new AI technology in search in 2023, the retailer announced.

Roots Canada LTD (No. 668)

Sales were $41.5 million in Q1, down from $43.1 million in Q1 2022. Net loss was also more than in 2022, at $8 million compared with $5.3 million last year. The first quarter typically represents just 15% of annual sales, the retailer said.

A few categories were bright spots for Roots in the quarter. Apparel categories were particularly strong, with dress and skirt sales up “five fold.” Activewear grew 50% year over year, and represented 10% of sales in the quarter.

Signet Jewelers Ltd. (No. 61)

Signet Jewelers reported ecommerce sales made up 23% of total sales in the first quarter. Ecommerce revenue is up 70% over 2020, the jewelry retailer said.

Total sales were down 9.3% year over year to $1.7 billion. Part of the declining sales are due to a drop in engagements from the COVID pandemic disrupting dating in 2020, CEO Gina Drosos told investors.

Torrid LLC (No. 224)

Online sales made up more than half of total revenue in Q1, Torrid said. Net sales decreased 11.8% year over year to $293.9. Traffic was “volatile and challenging,” both in stores and online, CEO Lisa Harper told investors.

“Once our customer finds us, she extends her shopping with us through our online capabilities, resulting in a strong omnichannel,” Harper said.

Vince LLC (No. 855)

Net sales decreased 18.3% year over year to $64.1 million in Q1, Vince reported. The decline was driven by a 6.3% decrease in Vince brand products, and a 99.2% decrease in Rebecca Taylor sales as Vince winds down the brand. The retailer didn’t share ecommerce sales figures, but CEO Jack Schwefel said stores outperformed ecommerce sales, in line with broader industry trends.

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Shopify slashes jobs again, sells most of logistics business to Flexport

Bloomberg News — Thu, 04 May 2023 15:42:55 +0000

Shopify Inc. will cut jobs for the second time in 10 months and has agreed to sell the majority of its logistics business to Flexport Inc. as it faces a challenging climb back from last year’s slump.

“I don’t want to bury the lede: after today, Shopify will be smaller by about 20% and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today,” CEO Tobi Lütke said in a memo to staff. “I recognize the crushing impact this decision has on some of you, and did not make this decision lightly.”

The company expects to incur severance charges of $140 million to $150 million.

“Our numbers were unhealthy, just like it is in much of the tech industry,” Lütke said. “With the right numbers, we’ll fully focus on outcomes and impact.”

Shopify earnings

The ecommerce platform provider also announced its fiscal first-quarter earnings on May 4. It said revenue increased 25% to $1.5 billion compared to the prior year.

Gross merchandise volume, the total value of merchant sales across Shopify’s platforms, was $49.6 billion. That’s above Wall Street projections of $47.68 billion, and some $6.4 billion higher than comparable quarter of 2022.

The Ottawa-based company also gave an outlook for the second quarter, saying it expects revenue to grow at a similar rate to the first quarter growth rate on a year-over-year basis. It also expects to achieve free cash flow profitability for each quarter of 2023.

Shopify bet early in the pandemic that a rapid rise in online shopping, fueled by customers staying home, would become permanent. As that wager soured, Lütke has attempted to turn the company around. It cut about 1,000 jobs last summer, raised prices and focused on building out client offerings and its in-house fulfillment network. Shopify had 11,600 employees at the end of 2022.

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The post Shopify slashes jobs again, sells most of logistics business to Flexport appeared first on Digital Commerce 360.