4 retailers getting decent sales numbers this holiday season

The 2021 holiday season has proven to be a happy one, with consumers filling their shopping carts. Even supply chain challenges, rising prices and the ongoing pandemic couldn’t dampen the season’s fervor. There’s no doubt that retailers seemed to have managed logistics and inventory issues well to effectively meet festive demand, whether offline or online. Retailers restocked shelves with in-demand merchandise and increased their investments in digitization.

Businesses have strengthened their omnichannel capabilities and adopted ways to improve delivery and payment systems. To this end, businesses’ same-day and last-mile delivery services, as well as online shopping and in-store pickup facilities bode well. In fact, corporate initiatives to expand delivery options and contactless payment solutions have been a boon amid the pandemic. Customers bought everything they needed, from clothing and clothing accessories, jewelry, sporting goods, furniture and fixtures, and electronics.

A report from the National Retail Federation indicates that holiday retail sales, excluding auto dealers, gas stations and restaurants, rose 14.1% year over year to $886.7 billion. The retail group also informed that online and non-store sales increased by 11.3% to $218.9 billion during the holiday season, defined as November 1 to December 31.

By Mastercard SpendingPulse, holiday retail sales, excluding automotive — from Nov. 1 to Dec. 24 — rose 8.5% year-on-year. The metric rose 10.7% from the same period in 2019. While in-store sales jumped 8.1% year-over-year, online sales jumped 11% and accounted for approximately 20.9% of overall retail sales, compared to approximately 20.6% in 2020 and 14.6% in 2019.

4 retailers who raise the toast

Five Below, Inc. FIVE posted strong holiday sales results despite a challenging supply chain environment. The company effectively managed product flow and remained proactive in meeting consumer demand. Five Below pointed out that net sales for the holiday season – from October 31, 2021 to January 1, 2022 – jumped 20.6% to $870.9 million, from $722.3 million reported during the comparable nine-week period from November 1, 2020 to January 2. 2021. Significantly, same-store sales for the holiday season increased 7.7%, on top of a record 10.1% increase recorded last year.

This extreme value retailer for tweens, teens and beyond is forecasting fourth-quarter fiscal 2021 net sales of between $985 million and $1,005 million. This suggests a 17.1% improvement at the high end of the range. Five below forecast comparable sales increase of 2-4%. For fiscal 2021, the company is targeting net sales of between $2,837 million and $2,857 million. This indicates a growth of 45.6% at the high end of the range. The company expects a 30% jump in comparable sales.

Despite difficult sales conditions, Zumiez Inc. ZUMZ, a leading specialty retailer of apparel, footwear, accessories and durable goods, performed well during the holiday season. We note that total net sales increased 9% for the nine-week period ended January 1, 2022 compared to the nine-week period ended January 2, 2021. For the same period, the company recorded sales growth comparables of 6%. Zumiez’s stores were open almost 97% of available days during the said period in 2021, compared to 96% in the comparable period of 2020.

Regionally, net sales in North America increased 5.1%, while other international net sales, including Europe and Australia, jumped 36.6% despite continued shutdowns and windy conditions. opposites related to the ongoing pandemic. During the reporting period, Zumiez’s men’s category recorded the strongest comparable sales growth, followed by footwear, accessories and women’s. Management reaffirmed the net sales growth projection for fiscal 2021 of just over 20% year-over-year.

Signet Jewelers Limited SIG shone this holiday season. A differentiated product assortment, targeted marketing and advanced connected commerce capabilities drove performance. Signet’s preliminary total sales for the nine weeks ended January 1, 2022 increased 30.4% year-over-year to $2.4 billion. Preliminary comparable store sales increased 25.2% year over year and 35.1% year over year. E-commerce sales increased by $52.1 million year over year and physical sales increased by $499.9 million. North America sales increased 30.2% year-over-year to $2.2 billion, while international segment revenue increased 30.5% to $144 million .

Buoyed by an impressive holiday performance, Signet raised its outlook for the fourth quarter and fiscal year 2022. Management now sees total revenue of $2.77 billion and comparable store sales of 22% in the fourth quarter. Management had previously reported revenue of $2.40 billion to $2.48 billion and same-store sales of 6 to 9 percent. For fiscal 2022, Signet forecasts total revenue of $7.78 billion, down from $7.41-7.49 billion previously forecast. It predicts same-store sales of 48%, higher than the previous view of 41-43%.

Tilly’s, Inc. TLYS reported stellar holiday sales numbers. Favorable market dynamics, an attractive assortment of merchandise and a shift in consumer preference for in-store purchases contributed to the results. The company pointed out that total net sales jumped 16.5% to $173.3 million during the holiday shopping season – the nine-week period ended Jan. 1, 2022 – from $148.7 million for last year’s nine-week period ended January 2, 2021. Impressive, total comparable store sales, including physical stores and e-commerce, increased 14.1% for the 2021 holiday season compared to an increase of 2.7% over the period of the previous year.

Given the strong holiday season performance as well as historical trends, Tilly’s expects to post the most profitable fourth quarter since going public. This retailer specializing in casual clothing, footwear and accessories expects to achieve the most profitable financial year on record. Tilly’s expects net sales for the fourth quarter of fiscal 2021 to be between $203 million and $205 million and earnings in the range of 39 to 42 cents per share.

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