The U.S. online shopping world's biggest day is here, but will strong web sales on Black Friday and Thanksgiving cut into Cyber Monday's take?
Web sales in the third quarter reached $178 million and e-commerce accounted for 10% of all sales.
Web sales grew at a brisk pace for athletic shoe and apparel chain retailer Foot Locker Inc. in the third quarter of its fiscal year, according to the company’s just-filed quarterly report for the U.S. Securities and Exchange Commission.
Seeing growing direct-to-consumer sales, which are virtually all online, Foot Locker, No. 51 in the Internet Retailer 2013 Top 500, already has spent $157 million to update certain parts of its e-commerce and mobile commerce business, along with designated store remodels and other projects, the retailer told Wall Street analysts on its third quarter earnings call.
“We continue to execute our various capital expenditure initiatives, including remodels, new stores and upgrades to our online, mobile and systems capabilities. Year-to-date, we have spent $157 million in capital,” chief financial officer Lauren Peters told analysts. “We currently expect capital expenditures this year to end up around $210 million, slightly below the $220 million target we set at the beginning of the year.”
For the quarter ended Nov. 2:
- Direct-to-consumer sales increased about 19.5% to $178 million from $149 million.
- Comparable-store sales grew 4.1%.
- Total sales increased 6.6% to $1.62 billion from $1.52 billion.
- Direct-to-consumer operating income grew 11.1% to $20 million from $18 million.
- Net income declined to $104 million from $106 million.
- The web accounted for 11.0% of all sales compared with 9.8% in the third quarter of 2012.
For the first nine months:
- Direct-to-consumer sales increased 18.8% to $486 million from $409 million.
- Comparable-store sales grew 3.7%.
- Total sales increased 5.6% to $4.71 billion from $4.46 billion.
- Direct-to-consumer operating income grew 12.8% to $53 million from $47 million.
- Net income increased 5.1% to $308 million from $293 million.
- The web accounted for 10.3% of all sales compared with 9.2% in the first three quarters of 2012.
Foot Locker didn’t go into great detail about its e-commerce plans, but told analysts that the channel continues to grow domestically and overseas. “Our customers want to interact with our brands everywhere: mobile, online and in stores,” CEO Kevin Hicks told analysts. “We're developing new and innovative ways to take advantage of our brand assets as we position our direct-to-customer business to continue leading our sales growth in the future.”