Zulily almost doubles Q2 earnings, sales
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.
Tervis taps Demandware to enhance digital commerce
Burlington, Mass. — Demandware, a provider of enterprise cloud commerce solutions, announced that Tervis Tumbler Company selected the Demandware Commerce platform to enhance digital commerce operations, grow online revenue and expand internationally. Tervis signed with Demandware in second quarter 2014.
Tervis selected Demandware’s cloud platform for its fast time-to-market and flexibility to quickly and more effectively respond to market changes and consumer demands. With Demandware, Tervis will streamline all B2C and B2B commerce operations onto a single platform to provide a consistent branded experience to consumers and businesses.
“The Tervis brand uniquely fosters both self-expression and shared community. It is essential that this is realized in our retail experiences,” said Mellisa Allen, head of technology, Tervis. “With Demandware, we will have a centralized platform that can still distinctly meet the evolving needs of our consumers and retail partners, and execute the vision for both our B2C and B2B sites. Leveraging Demandware’s cloud platform enables us to drive higher revenue growth through commerce innovation and accelerate our speed to market without the need for additional tech resources.”
CST Brands to acquire general partner of Lehigh Gas Partners
San Antonio, Texas – CST Brands Inc. has entered into definitive agreements to purchase 100% of the membership interests of Lehigh Gas GP LLC, the general partner of Lehigh Gas Partners LP, from Lehigh Gas Corporation.The aggregate consideration will be $17 million in cash and approximately two million CST shares.
Based on the closing share price of CST Brands stock as of Aug. 5, the total consideration is currently valued at approximately $85 million. Joe Topper, the chairman and CEO of LGP, will continue as president and CEO of LGP and will join the board of directors of CST Brands.
CST expects to grow both its fuel and convenience store count and wholesale fuel business through the acquisition. The transaction is expected to close in fourth quarter 2014. The CST board also authorized the repurchase of up to $200 million of CST Brands’ common stock.