Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Shopify Fends Off Temu and Shein as Sales Narrowly Beat Estimates

Shopify Inc. stocks tumbled after giving a sales outlook for the start of the year that fell short of analysts’ estimates, a sign that it face an uneven recovery from last year’s rout.
Revenue for the fourth quarter rose 24 percent to $2.1 billion, beating the $2.08 billion average analyst estimate. (Shutterstock)

Shopify Inc. reported sales and profit for the fourth quarter that narrowly beat analysts’ estimates, suggesting the Canadian e-commerce giant fended off competition from Asian shopping platforms like Temu, Shein and TikTok.

Revenue for the period rose 24 percent to $2.1 billion, beating the $2.08 billion average estimate of analysts surveyed by Bloomberg. Profit, excluding one-time items, was 34 cents a share, above the 30-cent expectation.

The results didn’t impress Wall Street, after the shares more than doubled last year. Shopify fell about 4 percent in US premarket trading.

The Ottawa-based company raised software prices for online merchants earlier this month, a move that’s expected to generate more than $100 million in additional revenue this year without driving away many customers. Shopify is in its first year of a deal with Amazon to let merchants use its “Buy With Prime” delivery service. Shopify sold its own logistics business to freight-forwarding startup Flexport last year.

ADVERTISEMENT

Gross merchandise volume, the overall value of merchant sales across Shopify’s systems, increased 23 percent to $75.1 billion, above Wall Street projections of $71.6 billion.

By Spencer Soper

Learn more:

Amazon, Shopify Strike Deal to Open Amazon Logistics to Sellers

The two companies, which both sell e-commerce software and services to brands and merchants, say Amazon’s “Buy with Prime” will soon be among the tools available to Shopify’s merchants in the US.

In This Article
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.


Why Esprit’s Ambitious Rebrand Fell Short

The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.


How Adidas Sambas Took Over the World

The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024