For the fiscal first quarter ended April 28, the apparel retailer posted total net revenue of $309.6 million. That compares with $303.7 million in the first quarter of 2022, a 1.9% gain. Net loss was $1.7 million, which compared with a Q1 2022 net loss of $2.4 million.

Lands’ End ecommerce

Ecommerce, which Lands’ End launched in the late 1990s and far ahead of many other apparel and mass merchandise retailers, also remained flat in the U.S. and declined overseas.

For the quarter, global Lands’ End ecommerce net revenue was $203.1 million. That’s a decrease of 7.3% from $219.1 million in the first quarter of fiscal 2022. Compared to the first quarter of fiscal 2022, U.S. ecommerce net revenue increased 1.6% to $177.7 million from $174.9 million.

Lands’ End U.S. ecommerce accounted for 57.4% of all sales compared with 57.6% in the first quarter of 2022.

Our U.S. ecommerce, which represents our largest go-to market segment, saw a sales increase of 2% from the first quarter of 2022, driven by targeted promotions within swim and adjacent product categories, interim chief financial officer Bernie McCracken told analysts on the Lands’ End Q1 earnings call.

“Our Europe ecommerce business in the quarter was down 29%, reflecting the continued lower levels of consumer demand in Europe,” McCracken said.

Lands’ End B2B sales

Lands’ End does not break out its B2B ecommerce numbers, but overall business-to-business sales in Q1 from its Outfitters unit was $74.0 million. That’s a 37.1% increase from $54.0 million in the first quarter of fiscal 2022.

“We continue to roll out our strategic initiatives and expect that the learnings from each successive quarter will enable further refinement,” said CEO Andrew McLean.

In the wake of weak ecommerce sales growth, Lands’ End is bringing in a new senior executive to change up operations. The company in April hired Stuart Hogue as Lands’ End’s senior vice president of U.S. ecommerce. Most recently, Hogue served as a senior advisor for McKinsey & Co. Prior to that, Hogue worked for 15 years at Nike. Most recently, he was vice president and general manager of Foot Locker, according to his LinkedIn profile.

“Stuart is a digitally savvy leader with more than 20 years of industry experience,” McLean told analysts. “He enjoyed a successful career at Nike and joined us from McKinsey, where he advised clients on digital, omnichannel retail, and marketing transformation initiatives.”

Lands’ End is No. 79 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

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The service, known as Adaptive Checkout, offers biweekly and monthly payment options for purchases of more than $50 with annual percentage rates starting at zero, according to a June 7 statement. Millions of customers using Amazon.com and the Amazon mobile app already have access to the pay-over-time service, the companies said. Amazon Pay is the retailer’s payment service available to consumers on other ecommerce websites. Shoppers can use their Amazon accounts, with payment and shipping information, to shop on other websites.

More retailers are adding buy-now-pay-later services every year, and as of June 2023, 54.4% of Digital Commerce 360’s ranking of the Top 1000 online retailers offer some version of this payment type. That’s up from 45.8% of Top 1000 retailers in 2022 and 28.2% in 2020. Amazon first added Affirm in 2021. For comparison, BNPL is more common among retailers who also offer Amazon Pay, at 68.2%.

17.3% of retailers in the Top 1000 offer Amazon Pay.

The buy-now-pay-later option can increase sales and customer loyalty, and attract new customers, San Francisco-based Affirm said. The mattress-and-bedding company Casper and water-filter supplier USA Berkey Filters have already integrated Affirm’s offering within their use of Amazon Pay, according to the statement.

“Customers want more choice and flexibility when paying online,” Affirm president Libor Michalek said in the statement.

Amazon is No. 1 in the Top 1000. The database ranks North American web merchants by sales. Amazon is also No. 3 in the Digital Commerce 360 Online Marketplaces database, which ranks the 100 largest global marketplaces.

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Already Asos’s third-largest shareholder, Frasers raised its holding to 8.8% from 7.4%, according to a June 6 filing. The stake has grown from around 5% in October.

Ashley founded Sports Direct four decades ago and built it into Frasers. The billionaire has a track record of taking stakes in failing retailers and growing positions in rivals.

Frasers has purchased stakes in Hugo Boss AG and luxury handbag maker Mulberry as well as buying Savile Row tailor Gieves & Hawkes, video game retailer Game Digital, apparel brand Jack Wills and online brand Missguided.

Asos changing trajectory

Asos has been overhauling its business in a bid to return to profit, reducing inventory and cutting back on excessive discounting.

Last month, it raised £75 million ($93 million) in equity from its two largest shareholders, Danish fashion group Bestseller and U.S. hedge fund Camelot Capital Partners, to support its turnaround plan. The company also refinanced its bank debt with borrowing facilities from specialist lender Bantry Bay Capital, backed by U.S. activist Elliott Investment Management.

Asos received a takeover approach from Turkish online retailer Trendyol in December at a price that would have valued the company’s shares at between £10 and £12 each, according to the Sunday Times. Talks between the companies are no longer active, the newspaper reported.

Asos was for years a stock-market darling amid rising sales and profits. But it has fallen 89% in the past three years and is now one of the United Kingdom’s most-shorted stocks.

ASOS Plc Holdings ranks No. 19 in the 2023 Europe Database. Digital Commerce 360’s database ranks the largest European online retailers by their web sales.

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Three of the top four online retail websites for apparel shopping are mass merchants. Amazon, Walmart and Target draw a large portion of online apparel sales. More specifically, four in 10 apparel buyers purchase 26% or more of their purchases on Amazon.

Mass merchants draw beauty sales

Overall, mass merchants dominate online beauty purchasing. Amazon, specifically, drew 59% of beauty-product purchases between October 2022 and March 2023, according to a Digital Commerce 360 and Bizrate Insights survey. 52% of respondents shopped with other mass merchants in the same time frame. Meanwhile, no other kinds of retailers had a 50% penetration of sales. The next largest penetration of beauty-product sales was with drug stores, at 36%. And 29% of respondents shopped with specialty beauty retailers, in particular, for such products.

Just over a third of surveyed online beauty shoppers go directly to brands for their loyalty program perks and money savings. 26% said they go directly to a brand because brands are more likely to offer free shipping, and 23% cite trust as a key factor.

Same-day delivery and flexible returns with mass merchants

38% of surveyed online shoppers ordered online from a web-only retailer for same-day delivery in the six-month period from September 2022 through February 2023. Meanwhile, 31% ordered online from a physical store for same-day delivery.

On the flip side, 24% returned an Amazon order to another retailer (such as Kohl’s) for processing back to Amazon. That compares with 19% who returned an Amazon order to an Amazon return center.

And when it came to in-store and curbside pickup, more than half of shoppers went to Walmart (63%) or Target (52%). Meanwhile, 37% of surveyed online shoppers used such services for hardware/home improvement purchases, and 34% for consumer electronics.

Amazon buying frequency

The online buying frequency among Amazon shoppers is fundamental to their success.

27% of survey respondents in September 2022 said they purchased from Amazon a few times a month. 18% said they purchase from Amazon a few times a week. Meanwhile, 3% said they purchase from it daily, and 6% said they do so multiple times a day.

Almost half of online shoppers surveyed purchased more apparel, home goods and health/beauty products on Amazon than elsewhere in 2022.

And when shoppers aren’t purchasing on Amazon, they tend to shop online at Walmart (54%), Target (36%) and specialty retailers (36%). Department stores and other marketplaces take the next largest shares of sales.

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When asked about their experiences with marketplaces over the past year, online shoppers remain passionate about purchasing via Amazon’s marketplace. That was in play for 76% of survey respondents. As there is a lot of clutter on marketplaces from advertising and sponsorship, we wondered if shoppers understood the complexity of marketplaces. As it turns out, close to half (46%) admitted they didn’t know if a product was being offered by Amazon or another marketplace seller.

Who’s selling what? And where?

An array of U.S. marketplaces beyond Amazon, eBay and Walmart, including specialty marketplaces, are also capturing shopper attention. Some 35% purchased from Walmart’s marketplace and 39% ventured out, also buying from marketplaces beyond eBay, Amazon and Walmart. 31% of participants bought from specialty marketplaces. Chinese marketplaces saw 18% penetration, and 6% of respondents purchased from other non-listed marketplaces.

Shoppers are active in the community, leaving product reviews at Amazon and other marketplaces. Amazon was the biggest recipient (46%), while 31% took the time to leave reviews beyond Amazon.

Interest in same-day delivery is seen and will likely grow in the coming year as 20% of those surveyed make those “need it now” purchases. Though marketplace sellers strive for in-stock status, 18% encountered out-of-stocks, which seems somewhat reasonable coming off post-COVID supply chain woes.

A topic we wanted to cover in-depth this year was counterfeit products. Just 9% of respondents felt they received such merchandise.

With assortments on marketplaces perceived to be greater, shoppers may find marketplaces more attractive. Half of marketplace visitors believe they are finding larger assortments with 43% about the same and just 7% less.

Higher prices, longer delivery lead times and out-of-stock products were the biggest marketplace challenges shoppers faced

Marketplaces need to monitor everything from product pricing to shipping fees as customers are savvy and shop around. This is especially true as 39% felt that marketplace prices were higher than they remembered. Additionally, 26% believed shipping fees were higher as well.

Logistics can be challenging for online shoppers with heightened interest in fast delivery. Yet, longer delivery lead times were found among 26% of survey respondents.

Out-of-stocks were sometimes a factor for shoppers (22%) and may have driven them to explore alternative marketplaces. Customer service-wise, just 15% said that limited or longer wait times were seen as problematic.

For 24%, it was difficult to distinguish between going to sellers versus the main marketplace, which was seen as challenging. Marketplaces should assess awareness of where products are made and their authenticity, though. Only 18% discerned if products were made in the USA, and just 17% if products were counterfeit.

Shopper buying frequency: Social marketplaces get increased attention

Social marketplaces like Facebook or Instagram are attractive to online shoppers. Sellers should test them to see if audience fit makes sense. One in four online buyers shops these social marketplaces. It’s also a positive that 19% of survey respondents indicate being more comfortable with the online marketplace model. And 18% are conducting more online purchases via marketplaces.

Sellers must be aware of the clutter factor. Some 20% of survey respondents suggested they dislike it when retailers such as  Target and Walmart add marketplaces because the retailers’ sites become cluttered.

More online behavior changes include shopping directly on sellers’ websites instead of marketplaces (19%), increased purchasing on marketplaces (18%), trying new online marketplaces (17%), and shopping exclusively on marketplaces (6%).

The same number of respondents (20%) find the broader marketplace assortment appealing and believe marketplaces tend to have more inventory.

From a dollars and cents point of view, perceptions from 23% were that prices were often lower than other retailer sites. Meanwhile, 16% felt fees were often less than other retailer sites. Yet 14% found prices including shipping fees in line with other retailer sites.

And when it came to customer service, 13% suggested marketplace customer service is on par with the retail sites they shop (13%).

Marketplace adoption expands

Marketplace purchasing will likely be steady in the coming year as two in three online shoppers plan to purchase about the same from marketplaces. Comfort with the model sees one in four shoppers indicating they will be buying more or exclusively from marketplaces. Positively, only 10% will buy less, and 5% said they don’t buy on marketplaces.

Many shoppers will experiment when smartly tempted by marketplace sellers. The majority of shoppers (52%) are willing to buy from unfamiliar marketplace brands or sellers. The biggest opportunity is convincing those that are on the fence that a site or brand is a viable option and to gain their comfort among the 29% of participants on the fence.

Online marketplace exposure and purchasing often leads to direct purchasing, which is likely to be more profitable for the merchant. Over half of online shoppers surveyed indicate that they have ultimately purchased directly with that merchant. This added product visibility via marketplaces can serve as a strong customer acquisition vehicle, making it one of the reasons retailers are participating more on marketplaces.

The role of ratings/reviews in helping shoppers make smart selections has bottom-line impact for sellers. 96% of online shoppers read and make purchases based on ratings and reviews. Reviews always influence the majority (55%) when making purchases. Meanwhile, 41% occasionally see such an impact.

Thus, online marketplaces must make sure reviews are robust. Smartly positioning reviews within the shopping experience ensure strong viewership.

Marketplace shopping starts with better prices and free shipping, along with in-stock products that can be delivered fast

Online shoppers seek the fundamentals when choosing to shop at marketplaces over going directly to retail sites. Price is the driving factor, selection appreciated, and convenience a given. Topping the list of influences in driving online shoppers to marketplaces is better prices (52%) and free and discounted shipping (51%).

Delivery speed is also an important influence in selecting marketplaces. 41% of survey respondents refer to it in choosing a marketplace. Shipping efficiencies, at 25%, also were a factor.

34% of survey respondents see marketplaces, at their core, as more convenient ways to shop. For 25%, it may be the broader selection in a category and for 20% the influencing factor in a wider range of categories in one location. Meanwhile, 17% found they were ideal for repeat purchasing (17%). But more interesting to me is that they have a unique opportunity to help online shoppers find very specific items (34%) while also trying unique products (24%) that sways shoppers toward marketplaces.

Past experience is an important indicator of future purchasing. It served as an influence for 20% of those surveyed as well.

From a tactical perspective, ratings and reviews — and more comprehensive product information (14%) — power purchasing. Higher seller feedback and ratings were influencers for 25% of participants.

Shoppers have a preference for in-stock products, and 34% found it influenced their behavior.

Other marketplace tactics that came into play from an influence point of view included loyalty programs (19%) and mobile apps (18%). I’m surprised only 13% cited superior service. It should go without saying.

Top concerns related to online marketplace purchasing are logistics, fees, product authenticity and return limitations

Online shoppers want the products they purchase to be of top quality and as represented on the site. Encountering counterfeit products was top of mind for 35% of participants. At the same time, 30% cited issues around subpar product quality.

Because long shipping times can cause buyers to worry (39%), inventory and delivery transparency are welcome. 22% of these online shoppers expressed concerns that an online order would never ship.

Shoppers expect marketplace goods to come from trusted sellers. Some 30% had trepidation about non-U.S. sellers. Simultaneously, 29% worried about whether the seller was not reputable or certified.

Shoppers like to have flexibility in their return choices. Some 33% of surveyed online shoppers found a lack of return options a challenge. Having customer service and support available is a given. 28% of respondents cited it.

A lack of product or seller reviews concerned 27%. The validity and authenticity of product reviews also was an issue for 29%.

From the money and savings vantage point, 38% found shipping costs too high, while fraudulent business practices including counterfeit goods were on the concern list at 35%. Unexpected additional expenses such as sales tax (22%), finding U.S. products at lower prices (16%) and financing options not available (11%) also were on the minds of these shoppers.

Online marketplaces continue to have an opportunity to grow. Broad assortments and attention to the fundamentals — from price to selection — set the tone for success. I advise vigilance when it comes to them. Sellers must monitor the quality and authenticity of their products. Product reviews and information will continue to drive confidence, along with an uncluttered, search-friendly and efficient experience. Monitoring consumer behavior will ensure marketplaces are on track for success in 2023 and beyond.

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Chewy, which exclusively sells products online, reported net sales were up 14.7% year over year to $2.78 billion in the fiscal first quarter ended April 30, 2023. 

Petco Health and Wellness Company Inc., which operates both in stores and online, reported comparable sales grew 5.1% year over year for its fiscal first quarter ended April 29, 2023. Net revenue grew 5.4% over the same period to $1.56 billion.

Chewy ranks No. 13 in the Top 1000, and Petco ranks No. 92. The database is Digital Commerce 360’s ranking of the largest online retailers by web sales.

Chewy customers aren’t trading down

Chewy CEO Sumit Singh told investors that pet owners remain willing to spend on premium products. 

“Our customers continue to show durability and product loyalty in these non-discretionary categories with no discernible trade down behavior,” he said, referring to the consumable and health categories. Those two categories made up 84% of net sales in the first quarter. 

While customer acquisition slowed, net sales per active customer grew 15% year over year to $500. This is largely driven by autoship, Chewy’s subscription program, Singh said. Autoship drives nearly 75% of sales, and “recurring and predictable revenue and long-term customer loyalty,” Singh said.

Petco grew online

Petco’s online orders showed “double-digit sales growth,” CEO Ron Coughlin told investors. Petco did not share what percentage of revenue is made up of digital sales.

Growth was driven by returning customers, pharmacy, and same-day delivery. Same-day-delivery orders doubled year over year, “underscoring the significant competitive moat same-day delivery offers relative to our online-only competitors,” Coughlin said.

Both brands emphasize health

Petco has vet clinics in some stores, and it is one of the 10 largest veterinary providers in the U.S., Coughlin said. In Q1 this year, Petco clinics saw 20% more pets than Q1 last year. The pet retailer also operates more than 1,300 mobile pet clinics that serve lower-income customers.

Health care is important for Chewy, too, though it doesn’t operate any clinics. In the quarter, it added Lemonade pet insurance to its offerings of wellness plans. Chewy also operates the largest pet pharmacy in North America, and all pharmacy products are eligible for autoship, Singh said.

Both retailers mentioned flea and tick preventatives as a growing part of business.

“A healthy start to the flea and tick season further supported performance in our health care business,” Singh told investors. Petco marketed flea and tick medications when the weather warmed in the U.S. northwest recently, and sales “performed strongly,” Coughlin said.

For the first quarter ended April 30, 2023, Chewy reported:

• Net sales grew 14.7% year over year to $2.78 billion.
• Net income grew 20% to $22 million.
• Net sales per active customer increased 15% to over $500.

For the first quarter ended April 29, Petco reported:

• Net revenue grew 5.4% to $1.56 billion.
• Net loss was $1.9 billion, a decrease of $26.6 million from the year-ago period with net income of $24.7 million.
• Average basket grew 5% year over year.
• Active customers remained flat at 25 million.

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23andMe Inc. (No. 309)

Revenue was down 8% year over year for the fiscal fourth quarter, but it grew 10% to $272 million for the full fiscal year ended March 31, 2023. The biotechnology company grew its customer base 11% in the fiscal year to 14 million genotype users.

It also grew its subscription membership, 23andMe+, CEO Anne Wojcicki told investors. Subscription membership grew 51% year over year to 640,000 members. More customers are also opting in to the subscriber program with their initial purchase, though she did not give a specific figure.

Advance Auto Parts Inc. (No. 101)

Advance Auto Parts reported a “double-digit sales increase” in ecommerce for its first quarter. Over the same period, net sales grew 1.3% year over year and comparable store sales decreased 0.4%. The auto parts retailer also reported that DIY omnichannel sales grew, without sharing specifics.

Bark (No. 173)

Revenue was down 2% year over year in the fiscal fourth quarter to $126 million, coming out ahead of Bark’s guidance. Direct-to-consumer revenue also decreased 1.5% to $116 million. For the full fiscal year, direct-to-consumer revenue increased 5.3% over fiscal 2022.

Bark broke down DTC revenue by product category. Toys, beds, and apparel generated $307 million in revenue in fiscal 2023. Consumables including treats and food generated $165 million.

Best Buy Co. Inc. (No. 7)

Domestic online revenue declined 12.1% for the first quarter to $2.69 billion, Best Buy said. Online sales made up 30.5% of total domestic revenue in the quarter, down slightly from 30.9% last year. About 40% of those sales were buy online, pick up in store (BOPIS) orders, the retailer said.

Online sales have doubled since 2020, CEO Corie Barry told investors.

Big Lots (No. 251)

Net sales were down 18.3% year over year to $1.1 billion the first quarter, Big Lots reported.

“Our lower-income consumer was hurt by inflation, lower tax refunds, and higher interest rates, and their confidence has been shaken by banking failures,” CEO Bruce Thorn said in a statement.

The discount retailer declined to share specific ecommerce data.

“We continue to improve the [online] customer journey through a more curated experience, better site navigation, and eliminating friction,” Thorn told investors.

Deckers Brands (No. 167)

Direct-to-consumer net sales grew 19.5% in the fiscal fourth quarter to $343.1 million, up from $287.2 million the previous year. Much of the growth came from a few specific brands. Sneaker company Hoka net sales, including in stores and ecommerce, grew 40.3% year over year to $397.7 million. Teva sales also grew 14.6%, while Ugg sales were down 16.1%.

“Fiscal year 2023 was an exceptional year for the Deckers organization, delivering 15% revenue growth and increasing earnings per share nearly 20%,” CEO Dave Powers said in a statement. “We continue to deliver record results, including the HOKA brand adding more than half a billion dollars of top-line revenue.

Lululemon Athletica Inc. (No. 27)

Lululemon reported ecommerce sales grew 18% in Q1 over the year-ago period. Online sales contributed $835 million in revenue in the quarter, 42% of total revenue, the retailer said.

Traffic grew 30% year over year both in stores and online, chief financial officer Meghan Frank told investors. 

Macy’s Inc. (No. 17)

Online sales were down 8% year over year in the first quarter. Ecommerce sales made up 33% of total sales in the quarter, CEO Jeff Gennette told investors. Digital penetration remained flat from 2022, down from a high of 40% during the pandemic. 

Nordstrom Inc. (No. 21)

Ecommerce sales were down 17.4% in Q1 due to eliminating digital order fulfillment at Nordstrom Rack stores and closing the Trunk Club in 2022, the retailer said.

Nordstrom reported that digital sales made up 36% of net sales in the quarter, down from 39% of net sales in the year-ago period. Digital sales were approximately $1.1 billion in the quarter.

Sportsman’s Warehouse (No. 361)

Net sales decreased 13.5% year over year to $267.6 million in the quarter. Sportsman’s Warehouse didn’t provide specific information on ecommerce sales. CEO Jeff White told investors that online sales are a “continually growing highlight” of the business even as overall sales were down.

Ulta Beauty (No. 48)

Ulta comparable sales were up 9.3% year over year in the first fiscal quarter. The beauty retailer didn’t specify what percentage of sales were through ecommerce.

Ulta also finished the two-year rollout of its updated website and app in the quarter. 

Victoria’s Secret & Co. (No. 53)

Net sales decreased 5% year over year $1.4 billion in the fiscal second quarter, Victoria’s Secret reported. Web traffic for the apparel retailer remained flat from 2022, though conversion rates and average unit retail both declined over the period. 

Casual sleep and beauty were the best performing categories both online and in stores, CEO Martin Waters told investors. Sales in China showed “outsized growth in digital,” he said.

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However, Costco net sales for the quarter increased to $52.60 billion. That’s up 1.9% from $51.61 billion in the prior year’s fiscal third quarter. And net sales for the first 36 weeks increased to $160.28 billion. That’s up 5.5% from $151.97 billion in the same period last year.

Chief financial officer Richard Galanti said big ticket discretionary departments decreased ecommerce sales 20%. Those included home furnishings, small electronics, jewelry and hardware, he said. Those accounted for 55% of Costco ecommerce sales.

“These same departments were down about 17% in warehouse, but they only make up 8% of in warehouse sales,” Galanti said.

Costco ranks No. 6 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Costco ecommerce sales

Galanti said Costco hired a vice president of digital transformation in the past year to improve ecommerce, including both mobile sites and applications.

“That complemented three other outside VPs we hired, one of which was in the data analytics area,” Galanti said. “And we’ve really, over the last six to nine months, began a two-year roadmap to improve and re-platform our primary ecommerce website, and the same goes for our mobile apps and mobile site.”

Omnichannel fulfillment at Costco

“In terms of the benefit of buying online and picking up in store and things like that, we frankly view that as more costly than it is beneficial,” Galanti said. “In fairness to the different retailers that feel they have to do it, many of them want to do it. But there’s a cost of doing that.”

Costco can “certainly do more online,” Galanti said.

“We don’t have some strategic goal to go from 8% — which is still a $20 billion business — but to go from 8% of sales to 16%,” Galanti said. “But let’s go from 8% to 9%, 9% to 10%, 10% to 11% over a certain period of time. And we think that with some of the things we’re doing on that side, we can.”

One such thing Costco is working to implement, according to Galanti: showing in-stock warehouse inventory online.

Costco membership growth in fiscal Q3

Galanti said Costco increased new memberships 7% year over year.

“Membership growth continues,” Galanti said.

The wholesale retailer ended its fiscal third quarter with 69.1 million paid household members and 124.7 million cardholders, both up approximately 7% versus a year ago. Also at the end of the third quarter, Costco had 31.3 million paid executive members. That’s up 681,000 — or an average of 57,000 per week — during the 12-week fiscal third quarter.

“Executive members now represent a little over 45% of our paid members and approximately 73% of worldwide sales,” Galanti said.

Meanwhile, the retailer increased its number of warehouses “just under” 3%.

For the quarter, Costco reported $1.44 billion of membership fee income. That’s 1.98% of sales compared to $984 million, or 1.91% a year ago in the third quarter, Galanti said. That represents a $60 million (6.1%) increase in membership fees, he said.

In terms of membership renewals, the United States and Canada membership renewal rate was 92.6%. Globally, that rate is 90.5%.

Costco earnings

For the fiscal third quarter ended May 7, 2023, Costco reported:

• Net sales increased to $52.60 billion. That’s up 1.9% from $51.61 billion in the prior year’s fiscal third quarter.
• Costco ecommerce sales declined 10%.
• $1.44 billion in membership fee income, comprising 1.98% of sales compared to $984 million, or 1.91% a year ago in the third quarter.

For the 36-week period ended May 7, 2023, Costco reported:

• Net sales for the first 36 weeks increased to $160.28 billion. That’s up 5.5% from $151.97 billion in the same period last year.
• Costco ecommerce sales fell 7.8%.

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Abercrombie & Fitch Co. (No. 60)

Abercrombie net sales were up 3% year over year to $836 million. The retailer did not break out ecommerce sales. 

“On digital engagement, our team has leveraged social media platforms to showcase our lifestyle offering, where we are able to highlight key must-win products for us in an authentic way. Social has proven to be a great channel for our target millennial customer,” CEO Fran Horowitz told investors.

American Eagle Outfitters Inc. (No. 55)

American Eagle ecommerce revenue was down 4% year over year in the first quarter, while in store revenue was up 5%. Overall revenue grew 2%, the retailer reported.

“Customers returned to in-person shopping and demand continued to normalize from elevated builds during the pandemic,” chief operating officer Michael Rempel told investors in a call. Leaders at American Eagle are working on strategies to use analytics to increase engagement, traffic, and conversion, Rempel said.

Bath & Body Works Inc. (No. 57)

The health and beauty retailer finished expanding its BOPIS rollout across the U.S. in Q1, CEO and director Gina Boswell told investors on May 18. Bath & Body Works plans to increasingly connect its digital and in-store offerings, Boswell said, because customers who shop through both channels spend three times more than customers who only use one. As of May 18, just 15% of customers shop through both channels, she said.

Boot Barn Holdings, Inc. (No. 328)

Ecommerce sales were down 18.4% in Boot Barn’s fourth quarter. “We believe these declines are a result of competitors having a stronger in-stock position compared to last year and expect this softness will be transitory,” CEO and president Jim Conroy told investors.

“While our online business declined, that business is cycling two very strong years of 39% and 24% comp growth in fiscal 2022 and fiscal 2021, respectively. Given the extraordinary revenue increase last year, we are quite pleased with these results,” Conroy said. Retail same store sales declined just 3.3% over the same period.

BJ’s Wholesale (No. 69)

BJ’s Wholesale said that digitally enabled comparable sales were up 19% year over year for the quarter ended April 29 ,2023. Online sales made up 10% of total sales in the quarter, CEO and president Bob Eddy told investors. Members of the warehouse club who shop online spend 70% more than members who only shop in stores, Eddy said.

Canada Goose (No. 135)

The winter wear retailer grew revenue 31.4% year over year in its fiscal Q4, but growth was partially offset by lower ecommerce results, per CEO and chairman Dani Reiss. Canada Goose didn’t share specific ecommerce figures.

The retailer shared plans to “further enhance store productivity and e-commerce performance in the not-so-distant future,” without stating details.

The Children’s Place (No. 124)

Digital sales growth at The Children’s Place “significantly outperformed” in-store sales for the first quarter, CEO and president Jane Elfers said in a statement. 

Online purchases made up 46% of sales in the quarter, compared to 45% in the previous year’s Q1 and just 33% in 2019. Elfers said ecommerce is projected to be 30% of sales by 2025, representing over $1 billion. 

Web traffic was “up double digits,” and 56% of new customer acquisition came through ecommerce, the retailer said. 

“Our millennial moms’ clear preference for the ease and convenience of shopping for her kids online is here to stay,” Elfers told investors.

Dick’s Sporting Goods (No. 32)

The sports retailer didn’t share specific ecommerce figures, but president and CEO Lauren Hobart told investors that “our digital experience remains an integral part of our success,” in a Q1 earnings call. 

Dick’s acquired outdoor retailer Moosejaw in March. Moosejaw primarily operates online, averaging 3 million visitors per month.

“For just over 10 months in 2023, we expect Moosejaw will add approximately $100 million in net sales,” chief financial officer Navdeep Gupta told investors.

e.l.f. Cosmetics Inc. (No. 953)

Beauty retailer e.l.f. grew net sales by 78% in its fiscal fourth quarter, “primarily driven by strength across our retailer and e-commerce channels,” it said in a statement.

E.l.f. began as an exclusively online brand before expanding into stores. Consumption of the brand’s digital content was up 75% in fiscal 2023, CEO Tarang Amin told investors. The retailer’s beauty squad loyalty program grew to 3.7 million members in the quarter, up 25% year over year. Loyalty members were behind nearly 80% of ecommerce sales, along with higher AOV and more frequent purchases than non-members, Amin assid.

Foot Locker, Inc. (No. 52)

Foot Locker reported that comparable digital sales in Q1 were down 16.8% year over year. The footwear retailer also discontinued an ecommerce line called East Bay, and online sales were down 9.5% excluding the brand. That’s still a larger decrease than in store comparable sales, which were down 7.4%. 

Online sales made up 16.3% of sales in the quarter, down from 18% in Q1 2022. Ecommerce sales are starting to pick up, with April sales up year over year, CEO Mary Dillon said. The retailer is on track to reach its goal of 25% online sales by 2026, Dillon said.

Guess Inc. (No. 177)

Online sales at Guess grew in Q1, although more slowly than in store sales, CEO Carlos Alberini said. 

Total revenue was down 4% in the quarter to $570 million, with U.S. revenue declines offsetting growth in Asia and Europe.

Kohl’s Corp. (No. 23)

Digital sales were down 19.6% year over year in Q1, Kohl’s reported. Net sales were down just 3.3%. 

“Our customers continue to shift back towards stores, and we reduced online-only promotions as we work to simplify our value strategies,” CEO Tom Kingsbury told investors.

Online sales made up just over one-quarter of sales for the quarter at 26%.

Ralph Lauren Corp. (No. 75)

Ralph Lauren’s digital sales were up in fiscal 2023, the retailer said. ”Sales in our owned Ralph Lauren digital sites grew mid-single digits on top of 20% growth last year,” chief financial officer and chief operating officer Jane Nielsen told investors in a Q4 earnings call.

“We plan to enhance the user experience with rich digital content and even greater customer personalization in fiscal ’24,” Nielsen said. That includes using generative AI for copy editing, computer programming, and graphics in addition to inventory optimization and forecasting.

Urban Outfitters (No. 30)

Apparel retailer Urban Outfitters reported comparable sales grew by double digits both in stores and online for its Anthropologie, Free People, and FP Movement brands. The Urban Outfitters brand’s comparable sales were down, and overall comparable sales were up 5%, the retailer said. 

“The growth in Retail segment comp sales was driven by a high single-digit digital comp and a low single-digit positive store comp,” co-president and chief operating officer Frank Conforti told investors. 

Online rental and resale marketplace Nuuly revenue grew 125% year over year, ending the quarter with 167,000 subscribers. 

Williams Sonoma Inc. (No. 22)

Revenue decreased 6% year over year in Q1, but was up 3.5% over 2021. The retailer did not specify ecommerce revenue. 

Williams Sonoma plans to “optimize our digital spend and customer connections,” per CEO Laura Albner.

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