Tomahawk, WI 05/09/2014 (Basicsmedia) – Zulily Inc (NASDAQ:ZU), a Seattle based retailer overtly obsessed with a passion for reaching out to busy moms with fresh curated collections and myriad online deals, shared with the world about the unanticipated losses in the last quarter, despite phenomenally increased sales!
In the quarter that ended on March 30, 2014, ZU has had net sales that escalated by a significant 87% over the past year. The financial highlights revealed that the Non-GAAP adjusted EBITDA and net cash flow has increased up 481% and 172% respectively.
The CEO Speaks
Darrell Cavens, the erudite CEO of Zulily Inc (NASDAQ:ZU) corroborated incidences of active customer growth and strong revenue, owing to the team’s sustained efforts in offering top notch and innovative collections, every other day, at great values. What’s intriguing is that despite such positivities, what forged such abysmal losses that were uncalled for!
Phenomenal Growth in Q1!
Zulily Inc (NASDAQ:ZU) highlighted that active customers grew phenomenally by 93% to 3.7 million, in contrast to 2013. The total orders placed increased to 91% as well, over the last year. The average order value escalated 4% over 2013, as well. There were significant reorders by existing customers in Q1; in fact, 83% of the total orders across North America were by existing buyers!
Zulily Inc (NASDAQ:ZU) is expected to expand the facility in Nevada to an extent that converges to double the existing size. In early January, the ZU shares soar above expectations, adding a grand market value to the 5 years old company; the ZU management was of the view that the mid-level managers and the contractors involved were not being able to keep up with the emphatic growth curve! The management stood opinionated about hiring a significant number of employees across the U.S. Proactive measures, phenomenal hiring rate and plans for expansion of the facility might have affected the business endeavors; hence, we observed unanticipated losses, despite exponential amelioration in revenues.
Into The Future – Are Profits Likely?
However, the future estimations of profits are likely – sales are deemed to increase by a margin of 80-90 percent, net income (including taxes) shall stand between $15 and $25 million! Non-GAAP adjusted EBITDA shall float between $45 and $55 million, in the same range as the projected Capital Expenses! Citigroup Inc. has opted to hold onto the stocks of Zulily Inc (NASDAQ:ZU) for the time being; equity research analysts are opting to cut the price, yet holding on to the stocks!