A discussion draft of the Online Sales Tax Simplification Act of 2016 is expected to be introduced in Congress soon.
The web accounted for 7% of Q1 sales and the apparel retailer aims for 10%.
Pacific Sunwear of California Inc. wants to increase e-commerce’s contribution to overall sales and is looking to social networks to help.
For the first quarter of fiscal 2014 ended May 3, Pacific Sunwear of California, or PacSun, reported:
- Total sales were $171.1 million, a 2.8% increase from $166.4 million in the first quarter of 2013.
- E-commerce accounted for 7% of total sales for the quarter, senior vice president and chief financial officer Michael Kaplan told Wall Street analysts on the company’s recent earnings call, according to a transcript from Seeking Alpha. Based on that figure, Q1 web sales were $12.0 million. PacSun did not break out Q1 2013 web sales or the online percentage of total sales.
- Comparable-store sales increased 3%.
- Net loss of $10.4 million compared with a net loss of $24.2 million in the prior year quarter.
The 7% web sales contribution is “fairly consistent with where we’ve been running over the last year or so,” Kaplan told analysts. “We clearly view e-com as an area of opportunities and over time we’d like to see that moving more towards the 10% of sales range.”
PacSun, No. 306 in Internet Retailer’s 2014 Top 500 Guide, plans to enhance online sales as part of what it terms omni-channel initiatives this year and next, president and CEO Gary Schoenfeld told analysts. Web initiatives have included engaging digitally and socially with consumers, such as through an internally-developed two-minute video posted May 22, which has garnered more than 832,000 views on YouTube. The video was tied to PacSun’s Find Your Golden State of Mind marketing program it launched in 2012 to mark its 30-year effort to promote the “California Lifestyle.” The program was re-launched May 23 with a sweepstakes for a trip for four to one of 20 U.S. cities.
“Some of the bigger initiatives are probably going to be in 2015 in terms of further integrating online and stores,” Schoenfeld said, but did not offer details.