- 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.