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.

Read more on Costco’s earnings here.

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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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.

Alibaba Group 

Alibaba’s revenue grew 5% to $36.67 billion in its third quarter ended Dec. 31.

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 GMV. Tmall ranks No. 2. Taobao and Tmall grew their combined revenue 1% to $17.43 billion.

Read more about Alibaba’s earnings here.

Bark (No. 186)

Bark reported revenue declined 6.9% to $125.1 million in its fiscal third quarter ended Dec. 31. Results were at the high end of Bark’s expectations. The retailer attributed the sales decline to fewer total orders due to a decrease in subscribers. Direct-to-consumer (DTC) sales, which make up the bulk of revenue, declined 7.6%. However, improvements to Bark’s website are driving increases in traffic and conversion, the retailer said.

Canada Goose (No. 218)

Canada Goose said total revenue grew 6% to $609.9 million in its fiscal third quarter ended Dec. 31. DTC revenue grew 14% due to growing in-store retail sales, partially offset by a decline in ecommerce. Wholesale sales, meanwhile, declined 28%. Canada Goose is evaluating its online product assortment to potentially make room for new categories going forward, said Jonathan Sinclair, chief financial officer.

The Container Store (No. 347)

The Container Store net sales declined 14.8% to $214.9 million in its fiscal third quarter ended Dec. 30. Online sales declined even more drastically, down 26.3% year over year. Website-generated sales, which include those designated for curbside pickup, declined 15.8%, accounting for 21.8% of net sales in the quarter. That’s flat with Q3 last year, the retailer said.

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.

Read more on Costco’s earnings here.

E.l.f. Cosmetics Inc. (No. 951)

E.l.f. Reported it grew net sales 85% to $270.9 million in its fiscal third quarter ended Dec. 31. Online sales made up 24% of total revenue, compared to 18% in the year-ago period. Loyalty members are a driving force behind online sales growth, the retailer said, accounting for nearly 80% of online sales. The Beauty Squad loyalty program has 4.5 million members, and grew 30% year over year, e.l.f. said.

Estee Lauder (No. 43)

Estee Lauder reported net sales declined 7% to $4.28 billion in its second fiscal quarter ended Dec. 31. The retailer attributed much of the sales decline to waning demand in China. It will lay off 3% to 5% of its workforce in 2024.

Read more about Estee Lauder’s earnings here.

Mattel (No. 205)

Mattel reported net sales grew 16% to $1.6 billion in its fiscal fourth quarter ended Dec. 31, while sales were flat for the year. Dolls, vehicles, games and building sets were the most successful categories, the retailer said.

“We expect the toy industry to decline in 2024, although at a lesser rate than 2023. The anticipated decline is due to a lighter toy theatrical film slate and the impact of the shift in consumer spending patterns towards experiences and services, which we believe will moderate over the year,” CEO Ynon Kreiz told investors.

PetMed Express Inc. (No. 354)

PetMed Express reported net sales for its fiscal third quarter ended Dec. 31 grew 11% year over year to $65.3 million. Recurring orders through the AutoShip & Save and PetPlus programs made up the majority of sales, accounting for 52.2% of revenue. That’s an increase from 42.3% of revenue in the year-ago period.

The retailer noted that pet food is a small but fast-growing part of the business. PetMed Express recently added the brand Hill’s Science Diet and has plans to pursue more premium pet food partnerships in the future.

Ralph Lauren (No. 78)

Ralph Lauren said revenue grew 6% to $1.9 billion in its fiscal third quarter ended Dec. 30. Global direct-to-consumer (DTC) same-store sales grew 9% over the same period. Gross profit was $1.3 billion, the retailer said.

Read more about Ralph Lauren’s earnings here.

Tapestry (No. 44)

Tapestry reported a 3% increase in net sales to $2.08 billion in its fiscal second quarter ended Dec. 30. Online sales grew in the single digits, the retailer said, making up one-third of total revenue. Direct-to-consumer revenue grew 4% over the period. Tapestry also opened a new fulfillment center in Las Vegas as part of a plan to grow omnichannel capabilities, the retailer said.

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.

Under Armour Inc. (No. 97)

Under Armour reported 2% growth in ecommerce revenue during its fiscal 2024 third quarter, which ended Dec. 31, 2023. Total revenue declined 6% to $1.5 billion.

Read more about Under Armour’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.

The Walt Disney Company Ltd. (No. 100)

Disney said revenue for its fiscal first quarter ended Dec. 30 was flat from the year-ago period at $23.5 billion. DTC revenue, which includes the company’s streaming channels, grew 15% to $5.5 billion in the quarter. The DTC segment led to an operating loss of $138 million, but that’s a decrease of 86% from the loss in Q1 of 2023. The company said it projects streaming to become profitable in fiscal 2024.

So what does it mean?

• The pet industry is subject to the same troubles facing other retailers. PetMed Express reported success with the same strategy that’s been successful for Chewy based on food and medications. Meanwhile, Bark felt a pullback in more discretionary pet items.
• e.l.f.’s 85% sales growth on top of the 49% it grew in Q3 2023 shows that the cosmetics retailer isn’t slowing down as it gains name recognition and expands on social media platforms.

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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Alon Partuk, CEO, Octup

Octup, an AI-driven ecommerce insights platform, says it “uncovers overlooked data” from brand manufacturers’ operations, including packaging, logistics and warehousing to last-mile delivery, returns management and customer support. In turn, it reveals opportunities to cut operating costs and boost profits, the startup says.

A group of investors led by Tal Ventures is backing Octup with $4 million in pre-seed funding. Octup says it will use the funding to “broaden the rollout of its 360-degree end-to-end discovery platform for ecommerce.”

Alon Partuk, founder and CEO, says he founded Octup in 2022 to “tap into deeper operational insights beyond standard metrics to uncover real opportunities,” adding, “We believe it’s crucial to understand how key business metrics like lifetime value and client retention relate to the quality” of a company’s service.

Prior to Octup, Partuk founded outdoor gear and apparel brand and merchant Apricoat, where he says he got the inspiration to develop Octup. He remains a director of Apricoat.

Octup says its technology helps global brands across such product categories as apparel, supplements, consumer electronics, skincare, and cosmetics jewelry.

John Michael Fabrizi, president and chief operating officer of outdoor apparel and hiking gear brand Coalatree, says in an Octup press release that Octup’s technology has helped Coalatree produce a 14% increase in customer retention, a 12% reduction in cost per order, and 9% revenue growth.

Fabrizi adds that, prior to Octup, Coalatree “grappled with data silos and missed opportunities due to disjointed insights across platforms, which limited our revenue potential.” He says Octup’s “user-friendly platform bridges these gaps, enhancing cost efficiency and profits.”

Ron Ostroff, the founder and managing partner at Tal Ventures, says his firm backs Octup for its ability to deliver “transformative benefits to ecommerce businesses, cultivating substantial growth and bolstering profitability.”

Octup says its financial backers also include Bullet Ventures, HCS Investors Group, World Trade Ventures, and the founders of unicorn technology companies Trax and Rapyd.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Peloton is No. 45 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales.

“Peloton and TikTok both move at the speed of culture to better serve our respective audiences,” Oli Snoddy, vice president of consumer marketing at Peloton, said in a press release. “We collectively recognize the way people engage with fitness is constantly changing. Our team is excited to complement TikTok’s already burgeoning fitness content by introducing the magic of Peloton to new audiences, and in completely new ways.” 

The videos will also include popular TikTok formats like “get ready with me” videos, CNBC reported. Those video types are among the most successful at influencing consumers to make a purchase, according to research from Morning Consult. Nearly one-third of Gen Z TikTok users say they’ve made a purchase based on “get ready with me” and “routine” videos.

The videos will be available in the U.S., U.K. and Canada.

TikTok enters ecommerce

The TikTok partnership is the first time Peloton has created custom content for a channel besides its own. In addition, it comes as TikTok is making a name for itself in ecommerce.

The social media company, owned by ByteDance, first launched TikTok Shop in the U.S. in September 2023 after nearly a year of testing. TikTok says it has about 150 million users in the U.S. who can make purchases inside the app while scrolling through videos. 

“Culture, communities and conversations live on TikTok, and this offers brands an opportunity to deeply connect with their audiences. When it comes to the fitness category, we have thousands of communities coming together to connect on everything from #TheFitnessJourney to bonding as #RunnersOfTikTok,” Sofia Hernandez, global head of business marketing at TikTok, said in a press release. “We’re thrilled that this partnership will bring inspirational fitness content and entertain Peloton users who come to TikTok to learn, connect with instructors, share fitness journeys, and find community.”

In 2024, TikTok aims to compete with Amazon for online shoppers. The company set a goal of $17.5 billion in U.S. ecommerce sales for the year, Bloomberg reported. In 2023, TikTok Shop attained about $20 billion in global merchandise value. The majority of sales came from Southeast Asia.

Peloton tackles a rebrand

Peloton announced a rebranding effort in May 2023 after pandemic success was followed by declining popularity and stock prices.

“We’re shifting perceptions from in-home to everywhere, fitness enthusiasts to people at all levels, exclusivity to inclusivity across all Peloton Members present and future,” chief marketing officer Leslie Berland said at the time.

The company promoted its tiered membership products, which can be purchased without owning the stationary bikes it is best known for. 

In its first fiscal quarter of 2024 ended Sept. 30, 2023, about 67% of revenue came from subscriptions, the company said. Peloton lost 30,000 members in the quarter, and revenue reached $595.5 million, down from a pandemic high of $757.9 million.

The fitness company also launched a collaboration with athletic apparel retailer Lululemon in September. Lululemon now makes Peloton-branded fitness apparel, sold online and in stores. Lululemon ranks No. 27 in the Top 1000.

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Several retailers working with Instacart on the promotions are part of the Top 1000, Digital Commerce 360’s ranking of retailers in North America by online sales.

Retailers include:

• Bath & Body Works (No. 56 in the Top 1000)
• Best Buy (No. 7)
• The Body Shop
• The Container Store (No. 346)
• Kiehl’s
• Lowe’s (No. 12)
• Michaels (No. 111)
• Petco (No. 92)

Instacart is just one last-minute holiday fulfillment option

With less than a week left until Christmas, some retailers are promoting omnichannel fulfillment and shipping from local stores via Instacart to assure customers that they’ll receive purchases on time. 

Instacart’s promotion ahead of the holiday says that explicitly. “Perfect for last-minute gift-givers, customers can ‘skip the ship’ and save with Instacart’s same-day delivery in as fast as an hour, ensuring gifts arrive in time for Christmas,” the delivery company’s release says. 

That’s on trend with how other retailers are approaching the week leading up to Christmas, says Neil Saunders, managing director of retail at analysis firm GlobalData.

“BOPIS will be used extensively both in terms of orders placed for collection and the collection of orders placed earlier in the week,” he says. “Consumers are comfortable ordering for collection in store right up to the last minute. For many, BOPIS is a way of getting organized with last-minute shopping as it saves them having to traipse round stores finding things they need.”

Two of the biggest ecommerce retailers, Walmart and Target, are also promoting omnichannel fulfillment.  Walmart’s same-day curbside pickup and delivery will both run through Dec. 24 at 4 p.m., with an order deadline of 12 p.m. that day. Walmart also offers express delivery, which arrives in two hours. That service will also run through 4 p.m. on Christmas Eve. Target customers can place curbside and BOPIS (buy online, pick up in store) orders as late as 6 p.m. on Christmas Eve. The deadline to receive an order by delivery is 4 p.m. on Dec. 24, with delivery through Target’s Shipt service in as little as one hour.

Retailer strategy behind pre-holiday Instacart offers

“Retailers will be assessing their inventory positions and will be discounting heavily on seasonal items” on Super Saturday and the final few shopping days before Christmas, Saunders says. “If things like holiday décor and decorations and sundries like wrapping paper and cards have not sold by Saturday, they will be keen to shift them.”

These last-minute purchases will primarily be impulse buys, likely in the beauty and fragrance and apparel categories, alongside gift cards, he says.

Pet items can also fall into this category. 

“We are proud of our longstanding partnership with Instacart to increase access to Petco’s curated selection of products supporting pets’ whole health,” Petco told Digital Commerce 360 in a statement. “With most of our Merry Makings gifts for all pet types under $20 at Petco stores and online, as well as special discounts for Instacart shoppers checking off their gift lists between now and Dec. 23, we are helping pet parents focus on what matters most — making memories together.”

A final sales push can be an opportunity to clear holiday inventory, like Christmas-themed pet toys and apparel.

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

Adobe Inc. (vendor to the Top 1000)

Adobe reported revenue grew 12% year over year to $5.05 billion in its fiscal fourth quarter ended Dec. 1. Net income grew 26% to $1.48 billion. Despite the strong quarter, forecasts of $21.3 billion to $21.5 billion in 2024 revenue came in below analyst expectations.

Adobe provides analytics technology to 203 Top 1000 retailers, website design and development tools to 100 and an ecommerce platform to 84. The technology vendor also shared online sales data, finding that Cyber 5 online sales grew 7.8% to $38.0 billion in 2023.

Amazon.com Inc. (No. 1)

Amazon recorded its highest operating income ever in its fiscal third quarter ended Sept. 30. Operating income nearly quadrupled year over year, growing 343%.

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. 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.

Read more on Costco’s earnings here. 

Scholastic Corp. (No. 95)

Scholastic reported revenue declined 4% in its fiscal second quarter of 2024 ended Nov. 30.

“Second-quarter results came in below expectations for profit growth, however, largely reflecting lower than forecast participation and spending in our School Reading Events division, which we expect to continue for the remainder of this school year,” CEO Peter Warwick said in a statement. The educational retailer pointed to strength in sales of new editions of popular book franchises including “The Harry Potter Wizarding Almanac” and “The Ballad of Songbirds and Snakes.” 

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.

Read more about Target’s earnings here.

Vera Bradley Retail Stores LLC (No. 277)

Vera Bradley recorded a revenue decline of 5% to $115.0 million in its third fiscal quarter of 2024 ended Oct. 28. Direct revenue through Vera Bradley stores declined due to store closures and weak demand in outlet locations, the retailer said. Sales through specialty and department stores increased year over year. The digitally native Pura Vida segment declined 18.3% to $17.8 million due to a drop in ecommerce sales, partially offset by in-store growth, the retailer said.

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.

So what does it mean?

• Costco is back to growing its online business and has plans to improve its website user experience, a sign that the membership retailer sees a future in ecommerce.
• While consumers are still spending on groceries, more discretionary items like purses and books are taking a backseat, as evidenced by Vera Bradley and Scholastic results.

Ecommerce earnings calendar

Here’s when to expect other ecommerce earnings this quarter:

• Amazon.com Inc.: Oct. 26
• Best Buy Co Inc.: Nov. 21
• Chewy Inc.: Dec. 6
• Costco Wholesale Corp.: Dec. 14
• The Gap Inc.: Nov. 16
• The Home Depot Inc.: Nov. 14
• Lowe’s Cos Inc.: Nov. 21
• Macy’s Inc.: Nov. 16
• Target Corp.: Nov. 15
• Walmart Inc.: Nov. 16

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

Amazon.com Inc. (No. 1)

Amazon recorded its highest operating income ever in its fiscal third quarter ended Sept. 30. Operating income nearly quadrupled year over year, growing 343%.

Read more about Amazon’s earnings here.

Academy Sports and Outdoors Inc. (No. 136)

Net sales declined 6.4% to $1.4 billion in its fiscal third quarter ended Oct. 28. Online sales made up 9.4% of total sales, down slightly from 9.5% penetration in Q2.

“Our sales and net earnings for the third quarter came in below expectations, primarily driven by weakening consumer sentiment coupled with above-normal temperatures that negatively impacted demand for Fall product,” CEO Steve Lawrence said in a written statement. 

Big Lots Inc. (No. 253)

Big Lots reported net sales declined 14.7% to $1.0 billion in its fiscal third quarter ended Oct. 28. Comparable sales declined 13.2%. Despite the sales decrease, Big Lots is on track to record year-over-year growth in Q4 for the first time in three years, the retailer said. The retailer did not share online sales data, but CEO Bruce Thorn says it has plans to improve listings of big-ticket furniture items and seasonal products online.

Chewy Inc. (No. 13)

Chewy net sales grew 8.2% to $2.74 billion in its fiscal third quarter ended Oct. 29. Autoship subscription orders remain the bulk of the business, growing 13% and making up 76% of net sales. About 85% of sales are consumable products like food and medications, Chewy said, and consumers are not trading down to non-premium alternatives. More discretionary categories like treats and toys have slowed, though, the retailer says.

Designer Brands Inc. (No. 77)

Designer Brands reported net sales declined 9.1% to $786.3 million in its fiscal third quarter ended Oct. 28. Comparable sales declined 9.3%.

“This quarter, we were impacted by a footwear market that contracted for the first time since COVID coupled with unseasonably warm weather, which significantly reduced customer demand for shoes and pressured our heavily seasonal assortment,” CEO Doug Howe said in a written statement.

Howe says he does not foresee pressure alleviating in the near term.

Dollar General Corp. (No. 724)

Dollar General net sales increased 2.4% to $9.7 billion in its fiscal third quarter ended Nov. 3. Growth was primarily driven by new store openings, the retailer said, while same-store sales declined 1.3%.

Average transaction amount declined as Dollar General consumers are squeezed by high prices across the economy, causing them to purchase less, CEO Todd Vasos told investors. Meanwhile, operating profit decreased by 41.1%.

Five Below Inc. (No. 581)

Five Below grew net sales 14.2% to $736.4 million in its fiscal third quarter ended Oct. 28. Much of the growth is attributable to the 74 new stores it opened in the quarter. Comparable sales grew 2.5%.

Online penetration remains low, says CEO Joel Anderson. Sales of discretionary categories including games, toys, and Halloween items were strong, the discount retailer says.

Foot Locker Inc. (No. 51)

Foot Locker’s total sales declined 8.6% to $1.9 billion in its fiscal third quarter ended Oct. 28. Comparable store sales declined similarly, down 8.0% “driven by ongoing consumer softness,” the retailer said in a statement.

Online comparable sales declined 5.6% over Q3 2022, mostly due to Foot Locker shuttering its East Bay online brand. Excluding East Bay, ecommerce comparable sales grew 0.4%. Online sales made up 17% of total sales in the quarter.

J. Jill Inc. (No. 247)

J. Jill reported net sales declined 0.1% to $150.1 million in its fiscal third quarter ended Oct. 28. Direct-to-consumer net sales declined 0.5%, making up 45.3% of total sales. The retailer also noted an increase in return rates due to customers becoming more discerning with discretionary spending.

Joann Inc. (No. 308)

Net sales at Joann declined 4.1% to $539.8 million in its fiscal third quarter ended Oct. 28. Online sales grew 11.5%, accounting for 13.1% of total sales.

“Our ecommerce performance was particularly strong, with double-digit quarter growth as we delivered a better and faster consumer experience and benefitted from site enhancements driving increased conversion,” CEO Chris DiTullio said in a written statement.

The crafts retailer is growing an Ohio fulfillment center with hopes of lowering fulfillment costs. 

Kirkland’s Inc. (No. 519)

Kirkland reported net sales declined 9.2% to $116.4 million in its fiscal third quarter ended Oct. 28. Online sales declined 8.5%, driven by decreases in average ticket and traffic. Declines were partially offset by an increase in conversion, the home decor retailer said. Furniture and wall decor sales flagged in the quarter, while early Christmas sales were strong, Kirkland said.

Land’s End (No. 79)

Net revenue at Land’s End declined 12.5% to $324.7 million in its fiscal third quarter ended Oct. 27. Ecommerce net revenue declined 13.2% to $249.2 million, or 9.7% excluding Land’s End Japan, which closed at the end of fiscal 2022. Despite overall declines, almost every women’s category grew sales double digits online in Q3, Land’s End said.

U.S. ecommerce gross profit grew 7% due to reduced promotions and better inventory management, the retailer said.

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

Petco comparable sales remained flat year over year in its fiscal third quarter ended Oct. 28. Revenue from consumables and services grew 1.8% and 15.0%, respectively. That was offset by an 8.8% decline in the companion animal business, leading to a 0.5% decline in net revenue to $1.49 billion.

The pet retailer recorded revenue growth in its digital business, it said without sharing specifics. BOPIS (buy online, pick up in store) and same-day delivery both grew in the quarter, Petco said.

Rent the Runway Inc. (No. 311)

Rent the Runway recorded a 6.3% decrease in net sales in its fiscal third quarter ended Oct. 31. Average active subscribers grew 4% to 134,646 over the year-ago period, while total subscribers remained flat.

Rent the Runway is expected to resume growing as it addresses a lack of inventory preferred by its members, CEO Jennifer Hyman said. Net loss in the quarter was $31.5 million, with plans to break even in 2024, Hyman says.

Stitch Fix Inc. (No. 42)

Stitch Fix reported net revenue declined 18% to $364.8 million in its fiscal first quarter of 2024 ended Oct. 28. The online styling service said net active membership declined 15% year over year, and net revenue per active client decreased 6%. Stitch Fix is also implementing generative AI in stylist notes to clients, and scaling its AI buying tool with plans to be used in 50% of orders by the end of fiscal 2024.

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.

Read more about Target’s earnings here.

Ulta Beauty Inc. (No. 46)

Ulta recorded a net sales increase of 6.4% to $2.5 billion in its fiscal third quarter ended Oct. 28. Comparable sales, including ecommerce, grew 4.5%, driven by 10% growth in online sales.

Ulta noted a 5.9% increase in transactions and 1.4% decrease in average ticket. The beauty retailer expects the online business to grow faster than its brick-and-mortar stores in 2024.

Victoria’s Secret & Co. (No. 52)

Victoria’s Secret net sales declined 4.0% to $1.3 billion in its fiscal third quarter ended Oct. 28. Online sales made up 35% of revenue in the quarter, up from 30% in the year-ago period.

Average basket size and conversion online both grew. Growing the online business further is the top priority going forward, CEO Martin Waters told investors.

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.

Zumiez Inc. (No. 453)

Zumiez net sales declined 8.9% to $216.3 million in its fiscal third quarter ended Oct. 28. That was a result of fewer transactions, but an increase in transaction size, Zumiez says. The footwear retailer did not share specific online sales data, but digital results were “just a little bit better than our overall result,” Chris Work, chief financial officer, told investors.

So what does it mean?

• Unseasonably warm weather was a challenge for retailers with specialized products. Academy Sports & Outdoors and Designer Brands executives both mentioned the impact of warm weather cutting into anticipated sales of winter gear.
• Selling discounted products isn’t enough to stand out in a competitive retail environment with increasingly choosy customers. Dollar General still managed to grow sales, although at a reduced pace from the previous quarter. Big Lots sales remain down year over year.

Ecommerce earnings calendar

Here’s when to expect other ecommerce earnings this quarter:

• Amazon.com Inc.: Oct. 26
• Best Buy Co Inc.: Nov. 21
• Chewy Inc.: Dec. 6
• Costco Wholesale Corp.: Dec. 14
• The Gap Inc.: Nov. 16
• The Home Depot Inc.: Nov. 14
• Lowe’s Cos Inc.: Nov. 21
• Macy’s Inc.: Nov. 16
• Target Corp.: Nov. 15
• Walmart Inc.: Nov. 16

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

Amazon.com Inc. (No. 1)

Amazon recorded its highest operating income ever in its fiscal third quarter ended Sept. 30. Operating income nearly quadrupled year over year, growing 343%.

Read more about Amazon’s earnings here.

Allbirds Inc. (No. 343)

Allbirds reported net revenue declined 21.2% to $57.2 million in the third quarter ended Sept. 30. The decline was due to decreases in selling price from promotions and a decline in units sold. Net loss was $31.6 million. Allbirds will launch on a “leading digital marketplace” in the U.S. in the coming weeks, the retailer said.

Bark Inc. (No. 187)

Bark reported revenue declined 14.4% to $123.0 million in its fiscal second quarter of 2024 ended Sept. 30. Direct-to-consumer revenue declined 11.3% to $104.3 million, and it made up the majority of total revenue.

“Macroeconomic headwinds continue to pressure the dog toy industry, which is down double digits this fiscal year. … In less discretionary categories like consumables, we have made important progress across both our direct-to-consumer and retail channels,” CEO Matt Meeker said in a statement.

Cricut Inc. (No. 472)

Cricut reported revenue declined 1% year over year to $174.9 million in its fiscal third quarter ended Sept. 30. However, operating income grew 36% in the same period. The technology company did not share ecommerce sales figures, but it is “encouraged” by Amazon Prime Day results, says CEO Ashish Arora. Cricut has plans for more short-lived but deep promotions during the holiday season to increase conversion.

EBay Inc. (No. 6 in marketplaces)

In its fiscal third quarter ended Sept. 30, eBay revenue grew 5% year over year. That’s up to $2.5 billion from $2.38 billion in Q3 2022. Meanwhile, eBay GMV grew 2% year over year. It reached $17.99 billion in Q3.

Read more about eBay’s earnings here.

The Honest Company Inc. (No. 704)

The Honest Company reported revenue grew 2% to $86 million in its fiscal third quarter ended Sept. 30. Online sales accounted for $40.1 million in revenue, growing 19% year over year while retail sales fell 9%.

“Robust consumption on Amazon” was a significant part of the digital growth, along with price increases, the retailer said.

Lulu’s Fashion Lounge Holdings Inc. (No. 203)

Lulu’s reported net revenue declined 21% to $83.1 million in the third quarter ended Oct. 1. The decline was driven by a 19% decrease in total orders, along with more promotions and a higher return rate. 

“In the third quarter of 2023, we continued to see the impact of macroeconomic headwinds on consumer spending and purchasing behavior,” CEO Crystal Landsem said in a statement.

Ralph Lauren Corp. (No. 78)

Ralph Lauren reported online sales in North America grew 4% in the third quarter ended Sept. 30. Brick-and-mortar sales in North America grew at the same rate. In the rest of the world, though, online sales outpaced in-store sales. They grew 19% in Asia and 14% in Europe. Total revenue increased 3% in the quarter.

The RealReal Inc. (No. 461 in Top 1000, No. 36 in marketplaces)

The RealReal reported revenue declined 7% to $133 million in the third quarter ended Sept. 30. Gross merchandise volume (GMV) also decreased, down 8% to $408 million. The retailer both sells used purses that it owns, and facilitates a marketplace for selling the same products.

“Our strategic shift to refocus on the higher-margin portion of the consignment business is delivering significant progress in our results,” CEO John Koryl said in a statement. Consignment revenue grew 10% in the quarter.

Steve Madden Ltd. (No. 261)

Steve Madden reported revenue declined 0.7% to $552.7 million in the third quarter ended Sept. 30. Direct-to-consumer revenue declined 1.8% to $116.4 million in the same period. That decline was largely driven by a decrease in ecommerce sales, the retailer said without revealing more. Consumers are increasingly shopping during holidays and promotional events, with fewer purchases in between, says CEO Edward Rosenfeld.

Target Corp (No. 5)

Target announced that digital sales declined 10.5% year over year in the fiscal second quarter ended July 29. The retailer’s Drive-Up service led online sales, Target says.

Meanwhile, comparable in-store sales declined 4.3% versus Q2 last year. Target’s total revenue in Q2 reached $24.8 billion. That’s down 4.9% year over year. Operating profit after taxes was $3.89 billion, down from $4.63 billion in the year-ago period. Read more here.

Walmart (No. 2)

Walmart announced that U.S. online sales grew 24% for its fiscal second quarter ended July 28. International ecommerce sales grew 26%. Ecommerce sales were fueled by pickup and delivery orders.

Over the same period, comparable in-store sales grew more modestly, up 6.4%, excluding fuel. Total revenue grew, too, by 5.7% to $161.6 billion. Read more here.

Under Armour Inc. (No. 97)

Under Armour reported ecommerce revenue grew 2% in the second quarter of fiscal 2024 ended Sept. 30. Ecommerce accounted for about $208 million in revenue, according to Digital Commerce 360 estimates. Direct-to-consumer revenue, which includes ecommerce, grew 3% to $596 million. Total revenue remained flat at $1.6 billion, Under Armour said. 

Read more on Under Armour’s earnings here.

The Walt Disney Co. Ltd. (No. 100)

Disney reported revenue for the fourth quarter ended Sept. 30 grew 5%, and revenue for the year grew 7%. The entertainment company says its direct-to-consumer business accounted for $5.5 billion in revenue in the quarter, up 13% year over year, and $21.9 billion for the year. It resulted in a loss of $387 million for the quarter and $2.6 billion for the year. Disney defines its direct-to-consumer sector as including Disney+ and Hulu streaming services.

Warby Parker (No. 340)

Warby Parker reported net revenue grew 14.2% to $169.8 million in the third quarter ended Sept. 30. Net loss was $17.4 million. Ecommerce sales grew 3%, driven by marketing and the growth of Warby Parker’s contact business, which is mostly online, the retailer said. Ecommerce now represents 33% of revenue, in line with levels before the pandemic. 

Yeti Holdings Inc. (No. 135)

Yeti reported sales were flat year over year in its third quarter ended Sept. 30. Direct-to-consumer sales grew 14% to $259.5 million in the quarter, while wholesale sales declined 16%. Yeti had a successful Amazon Prime Day in July with discounts on older colors and products, the retailer said.

1-800-Flowers.com Inc. (No. 47)

1-800-Flowers reported total consolidated revenue declined 11.4% to $269.1 million the fiscal first quarter ended Oct. 1. Gourmet food and gift baskets, consumer florals and gifts, and BloomNet wholesales revenues declined 9.3%, 12.3%, and 13.5%, respectively. 

“Our fiscal first quarter is comprised of everyday or just-because gift giving occasions, which has been challenged over the past year as consumers reduced their discretionary spending in response to the macro environment,” CEO Jim McCann said in a statement.

So what does it mean?

• Discretionary items, like pet toys and gift baskets, remained under pressure across the board as consumers slowed spending ahead of the holidays.
• Amazon Prime Day drove sales for specialty retailers Cricut and Yeti.

Ecommerce earnings calendar

Here’s when to expect other ecommerce earnings this quarter:

• Amazon.com Inc.: Oct. 26
• Best Buy Co Inc.: Nov. 21
• Chewy Inc.: Dec. 6
• Costco Wholesale Corp.: Dec. 14
• The Gap Inc.: Nov. 16
• The Home Depot Inc.: Nov. 14
• Lowe’s Cos Inc.: Nov. 21
• Macy’s Inc.: Nov. 16
• Target Corp.: Nov. 15
• Walmart Inc.: Nov. 16

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

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

Michaels ranks No. 111 in the Top 1000, Digital Commerce 360’s ranking of the 1000 largest online retailers in North America.

A tiered loyalty program allows better targeting

The crafting retailer created Michaels Rewards, which allows all members to earn 3% back in rewards for all purchases. It’s free to join, and customers who spend $300 or more in a year can earn 6% back in vouchers that can be used at the retailer.  

“Convenience and personalization are the most important elements in any membership program,” Bennett says. “Loyalty programs should not be developed with a one-size-fits-all approach, which is why we offer three tiers in our program.” 

A tiered reward system allows a retailer to offer the greatest savings to the most loyal customers, who will likely return to make more purchases in the future, Bennett says. That’s why Michaels added a credit card in the latest round of updates to its program, which comes with 9% back in rewards. Members without the credit card can reach a maximum of 6% in rewards. The credit card was something customers asked for when they gave Michaels feedback, she says.  

“This benefit of 9% in rewards is really meaningful for those customers who are stocking up on supplies frequently or run their own creative businesses,” that require craft supplies, Bennett says.   

Loyalty program membership is growing

Bennett says the program has “tens of millions” of members. Membership is growing 9.75% year over year. Plus, more than 50% of Micheals customers are rewards members, she says. She declined to share a specific membership number. 

“Members in the Rewards program are more likely to add more items to their baskets and make purchases more frequently than those not in the program thanks to the benefits of stacking up rewards points,” Bennett says.

For example, customers who reached the 6% reward level spend on average 2.8 times more than members in the 3% tier. Credit card holders in the 9% tier spend an average of four times more than customers without credit cards, she says.   

Retailers can use rewards strategically

Retail chains are good examples of retailers that can effectively use loyalty programs to their advantage, says Neil Saunders, managing director of retail analysis firm Global Data.  

While tiered programs like those employed here aren’t “strictly necessary,” Saunders says, they make a lot of sense.  

“Retailers want to give the best rewards to those who spend more so they can ensure their loyalty. They also use tiers to encourage people to spend more so they can move to a higher tier and get better rewards or benefits,” he says. 

The potential downside is that consumers in lower tiers may not feel as valued. However, personalized rewards like a birthday gift can combat this and keep consumers engaged, he says.  

Loyalty programs in the Top 1000

Fewer than one-third of Top 1000 retailers have a loyalty program. The number of Top 1000 retailers with loyalty programs has grown 16.8% since 2019, according to Digital Commerce 360 data. The majority of the growth took place in 2020, and has remained nearly flat since. 

Though not strictly necessary, “rewards programs can be very useful for retailers both because they enable them to gather information about customers and drive certain behaviors,” Saunders says.

If a retailer does choose to use a rewards program, it must have a clear purpose, he says. 

“Is it to increase loyalty, to stimulate consumers into spending more, to gather data, to improve price perceptions, and so on? Knowing the purpose is vital as it then allows retailers to work out the cost of a scheme versus the potential reward,” Saunders says. 

Retail chains are far more likely than other merchant types to have loyalty programs. 48.1% of retail chains have a free loyalty program. That’s compared to 26.5% of consumer brand manufacturers, the next highest merchant type. Retail chains with loyalty programs generated $164.47 billion in web sales for Top 1000 retailers in 2022, 46.8% of total sales in the category.  

This high penetration of retail chains having loyalty programs could be because they are more likely than other types of merchants to have the resources and finances to implement an effect rewards program, Saunders says.  

“Chains have a very large base of customers, so rewards schemes make sense in terms of allowing them to gather data and use incentives to encourage more buying,” he says. Because these programs are so common among retail chains, consumers are also more likely to expect them, he says. 

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