One of the most important effects of the pandemic this year has been an acceleration in the growth of market share for online retailers versus their brick and mortar counterparts. Many people who hadn’t previously tried shopping online were forced to try it this year because of concerns related to the virus. Many of them found out how convenient that experience is and will continue to do some of their shopping online even after the distribution of an effective vaccine.
This year, that vaccine won’t be ready for the holidays, which could place additional demand pressure under the bid for online retailing stocks on both an end-market and B2B basis.
With that in mind, we take a look at a handful of the more interesting names in the space, including Etsy Inc. (NASDAQ:ETSY), Blue Apron Holdings Inc. (NYSE:APRN), ADM Endeavors Inc. (OTC US:ADMQ), and Stitch Fix Inc. (NASDAQ:SFIX).
Etsy Inc. (NASDAQ: ETSY) bills itself as a company that operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. The company’s primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers purportedly come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs.
For sellers, the company offers a range of tools and services that address key business needs. In addition, Etsy, Inc. owns Reverb, a leading global online marketplace dedicated to buying and selling new, used, and vintage musical instruments.
Etsy Inc. (NASDAQ: ETSY) just announced financial results for its third quarter ended September 30, 2020, including total revenue at $451.5 million for the third quarter of 2020, up 128.1% year-over-year, driven by strong growth in both Marketplace and Services revenue.
“We delivered very strong results during the third quarter, with consolidated GMS and revenue growth up 119% and 128% respectively, evidence of our focused execution, engagement with our buyers and sellers, and our strong brand, underpinned by the unique inventory in our marketplace,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “Consumer shopping habits have been greatly influenced by the events of 2020, and Etsy truly stands for something different. We’ve been able to sustain growth by driving retention and frequency of our existing buyers as well as becoming an important shopping destination for new buyers. While early, our incremental investments in product and marketing – specifically focused on search and frequency – are driving improvements in the customer experience. We are proud of our momentum, built on the strength of our business model and with the support of our engaged and focused team.”
And the stock has been acting well over recent days, up something like 8% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -11%.
Etsy Inc. (NASDAQ: ETSY) generated sales of $451.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 5.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.5B against $340.9M).
Blue Apron Holdings Inc. (NYSE :APRN) promulgates itself as a company that operates direct-to-consumer platform that delivers original recipes, and fresh and seasonal ingredients. It also operates Blue Apron Market, an e-commerce market that provides cooking tools, utensils, pantry items, and other products.
In addition, the company offers Blue Apron Wine, a direct-to-consumer wine delivery service that sells wines, which can be paired with its meals, and supplies poultry, beef, and lamb. It serves college graduates, young couples, families, singles, and empty nesters. The company offers its services through order selections on Website or mobile application primarily in the United States.
Blue Apron Holdings Inc. (NYSE: APRN) recently announced that it is partnering with Chef Edouardo Jordan, the winner of two James Beard Awards and chef-owner of acclaimed restaurants JuneBaby, Salare and Lucinda Grain Bar, to create an exclusive offering for its customers. According to the release, starting with Jordan’s take on Thanksgiving, Blue Apron x Chef Edouardo Jordan meals celebrate the joy of cooking with each recipe bridging his rich family history and modern culinary perspective.
“This menu is a reflection of my roots, my stories and my history,” said Chef Edouardo Jordan. “Inspired by my Southern roots and the cuisine of the African diaspora, I created these simple recipes, in collaboration with Blue Apron’s culinary team, to encourage home cooks to have fun in the kitchen and celebrate over a great meal.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 11% in that timeframe. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%.
Blue Apron Holdings Inc. (NYSE: APRN) generated sales of $112.3M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -14.3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($59M against $78.5M, respectively).
ADM Endeavors Inc. (OTC US: ADMQ) operates its wholly owned subsidiary, Just Right Products, Inc., which is a diverse vertically integrated business in the Dallas/Fort Worth area, consisting of retail sales, screen print production, embroidery production, digital production, import wholesale sourcing, and uniform sales.
The Retail Sales Division focuses on “any product with a logo”. It sells a wide range of products from business cards to coffee cups. The company’s motto is: “We Sell Anything with A Logo!” The company’s lead is Marc Johnson, ADMQ Chairman, CEO, and CFO, who has been aggressively buying ADMQ common and preferred stock over the past two years, acquiring over 30% of the common stock and 100% of the preferred stock in that time, according to company materials.
ADM Endeavors Inc. (OTC US: ADMQ) most recently announced that its gross revenue for its wholly owned subsidiary, Just Right Products, Inc., in the first ten months of 2020 is approximately $4.2 million (unaudited), topping the total gross revenue for the full year of 2019 of $3.8 million.
“I am very pleased to let our investors know about this achievement, especially since 2020 has been such a difficult year for business,” said Marc Johnson, CEO. “Our sales in our uniform division, a key part of the Company, dropped in 2020 as schools and institutions were impacted by COVID-19. Despite this, our team rallied for a solid sales performance.”
ADM Endeavors Inc. (OTC US: ADMQ) is the most speculative name on this list, but may also be the most interesting given its low price tag on a per-share basis, especially considering the company’s strong growth over the past year in the face of clear macro headwinds.
Stitch Fix Inc. (NASDAQ: SFIX) trumpets itself as a company that operates an online personal styling service that is “reinventing the shopping experience” by delivering one-to-one personalization to our clients through the combination of data science and human judgment. Stitch Fix was founded in 2011 by CEO Katrina Lake.
Since then, we’ve helped millions of women, men, and kids discover and buy what they love through personalized selections of apparel, shoes, and accessories, curated by Stitch Fix stylists and algorithms.
Stitch Fix Inc. (NASDAQ: SFIX) recently announced that Neal Mohan has joined Stitch Fix’s Board of Directors, effective October 21, 2020.
Neal Mohan is Chief Product Officer at YouTube. He is responsible for YouTube products, user experience, and trust and safety on all platforms and devices globally. This includes YouTube on mobile, desktop and TV devices, experiences like YouTube Music, Kids, and VR, and YouTube’s two subscription services, YouTube Premium and YouTube TV. Previously, Neal was Senior Vice President of Display and Video Ads at Google. In that role, he was responsible for the company’s advertising offerings on YouTube, the Google Display Network, AdSense, AdMob, and the DoubleClick family of programmatic ad platform products. He focused on growing the overall digital media industry by building innovative solutions for millions of Google’s advertising and media partners around the world.
The stock has suffered a bit of late, with shares of SFIX taking a hit in recent action, down about -7% over the past week.
Stitch Fix Inc. (NASDAQ: SFIX) managed to rope in revenues totaling $443.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 2.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($286.5M against $212.2M).
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