Seeking Alpha

Zulily blasts off on Q4 beat, guidance. Groupon also jumps.

  • Zulily (ZU +39.9%) is turning in a memorable day after trouncing Q4 estimates and issuing strong Q1/2014 guidance. Shares of the apparel flash sales site are now up nearly 3x from a November IPO price of $22.
  • Daily deals leader Groupon (GRPN +7.4%), clobbered last week following its Q4 report, is following Zulily higher. E-commerce marketing services providers RetailMeNot (SALE +2.2%) and ChannelAdvisor (ECOM +2.5%) are also posting decent gains.
  • RBC (Outperform) has hiked its Zulily PT to $50 from $40 - if shares hold onto their gains, another hike will be needed for RBC to keep its rating. The firm is happy with Zulily's 568K Q4 active customer adds and 6.9% EBITDA margin (+320 bps Y/Y due to marketing/SG&A leverage), though it also notes gross margin (26.6%) was slightly below a 27.4% consensus.
  • Zulily mentioned on its CC (transcript) 45% of its Q4 North American orders came via mobile devices, up from 31% a year ago. The company also spent considerable time talking up its efforts to diversify - it now supports 300 merchants, and offers over 4.5K new products each day.
Comments (1)
  • Doyle3000
    , contributor
    Comments (1253) | Send Message
     
    Cramer was talking this ZU up big time this morning. Saying he finally found someone who can take a run at Amazon.

     

    But the facts are that they do not have an intuitive, easy to access website, nor do they have free shipping, nor do they have a robust easy return policy. I think the news of Amazon's demise is a little premature.

     

    But in this market, why not have it go to $60 today?
    25 Feb, 01:48 PM Reply Like
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