Amazon is growing on-demand services after reporting a 20% sales increase in 2015.
But the retailer’s total sales fell more than 6%.
While apparel retailer Aeropostale Inc.’s web sales soared more than 22%, the retailer’s overall sales dipped more than 6% in the second quarter.
For the second quarter ended Aug. 4, Aeropostale, No. 111 in the Internet Retailer 2013 Top 500 Guide reported:
- E-commerce sales, including sales from GoJane.com, the web-only women’s fashion footwear and apparel retailer that the retailer acquired last November, of $39.0 million, a 22.3% increase from $31.9 million in the third quarter of fiscal 2011.
- Total sales of $454.0 million, down by about 6.4% from $485.3 million.
- Comparable-store sales, which include web sales, declined 15%.
- Net loss of $33.7 million compared with a $71.0 million profit a year earlier.
The web represented 8.6% of total sales in Q2 2013, compared with 6.6% in the prior year period.
The results were frustrating, said CEO Thomas P. Johnson, during a conference call with analysts. “We're disappointed that our financial recovery is taking longer than we expected,” he said. “However, we're committed to turning our business around and focusing on changing brand perception and recapturing market share.”
He pointed to e-commerce as one of the retailer’s bright spots. “In our e-commerce business, we are pleased with the performance of GoJane, and we've been working diligently to transform the Aeropostale brand through our direct channel as well,” he said. One of the retailer’s efforts is to drive interest in new products online. For instance, it sold its new Live Love Dream brand products online before the items were available in its stores.
For the first six months of 2013:
- Web sales were $80.9 million, up by 17.1% from $69.1 million in the same period last year.
- Total sales of $906.3 million, a 7.8% dip from $982.5 million.
- Net loss of $45.9 million compared to an $81.6 million gain in the first half of 2012.
The web represented 8.9% of total sales in the half of 2013, compared with 7.0% in the prior year period.