Zulily did not let down its investors, who sent shares higher today, in anticipation of a strong holiday quarter.
In regular market hours, shares were up almost 5.5 percent, or $2.20 a share, to trade at $42.90, and in after-hours trading, shares soared, trading up 10 percent, or $4.27 a share, to $47.11 to exceed the company’s previous high of $44.96.
After the bell, the Seattle-based online discounter of products for moms and kids, released the company’s first quarterly report since raising $140 million in a public offering last November. Sales for both the fourth quarter and year-end doubled compared to the year earlier, which is a nice way to start off as a publicly-held company.
The company said fourth quarter sales totaled $257 million, up 100 percent year over year. Full-year sales were up 110 percent, to $695.7 million. Profits were also strong. For the fourth quarter, net income totaled $12.8 million, increasing 293 percent. More importantly, the company was able to earn a profit of $12.9 million in 2013, reversing a loss of $10.3 million in the prior year.
The final quarter is typically the busiest time of the year for retailers. Zulily is no exception. “We’re excited to close out a great year with a strong quarter and increasing profitability,” said Darrell Cavens, CEO of zulily.
In November, the fast-growing e-commerce site was able to brush off negative connotations with deals providers, to raise $140 million worth of stock at $22 a share. As part of the deal, insiders also sold 5.1 million shares for $112 million.
Zulily also provided a forecast for the upcoming year: In the first quarter, the company expects to continue strong momentum with sales coming in between $225 million to $235 million. However, the company warns it may report a Q1 net loss of $500,000 to $1 million. The full-year outlook is also enticing with sales between $1.1 and $1.15 billion and a net income (before income taxes) of $15 million to $25 million.
The company is holding a conference call this afternoon at 2 p.m. to discuss the results.