Seattle – Online specialty retailer Zulily beat Wall Street expectations by almost doubling its net earnings and sales in the second quarter of fiscal 2014, compared to the second quarter of the previous fiscal year. Net income rose 95% to $7.8 million from $4 million, while net sales increased 97% to $285 million.
Zulily attributed its overall strong performance to improved mobile sales, with mobile devices now accounting for 47% of North American sales, a growing customer base, and higher average order values.
In addition, Zulily intends to open its third distribution center somewhere on the East Coast in 2015. The company currently operates a distribution center in Nevada, due to be replaced by a new 707,000-sq.-ft. facility there in September, and one in Ohio.
Looking ahead, Zulily expects to report a net loss in the third quarter of fiscal 2014 but net income for the full year. The retailer also expects net sales growth for both the third quarter and full year.