The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
OTTAWA, Canada — E-commerce software provider Shopify Inc. rose in early trading Wednesday after it reported first-quarter results that beat analysts' estimates and boosted its full-year outlook as its mobile business continues to grow.
Revenue in the three months ended March 31 surged 95 percent to $72.7 million, Ottawa-based Shopify said in a statement, beating the average analyst estimate of $66.9 million. In the second quarter, sales will range from $79 million to $81 million, above the $74.8 million average estimate. The Canadian company also increased its outlook for full-year revenue, projecting sales of $337 million to $347 million, compared with a previous company forecast of $320 million to $330 million and analysts’ estimates of $327.9 million.
Mobile orders surpassed those on desktop for the first time ever this quarter, Shopify said, as just over 51 percent of orders came from mobile devices. An integration with Facebook Inc.’s Messenger app makes it easier for merchants to engage in “conversational commerce” with customers, Shopify said.
“The era of mobile commerce has officially arrived,” founder and chief executive officer Tobi Lutke said in the statement. “Mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since.”
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Shares were up 6.4 percent in early trading in New York, at $32.70. They are up 19 percent this year through Tuesday.
The operating loss for the first quarter was $9.7 million, the company said, compared with $3.5 million last year. The full-year operating loss will be $41 million to $47 million, Shopify said, compared with a previous forecast of $36 million $42 million, Last month, Shopify signed a deal for a new office space in Toronto that can accommodate as many as 700 employees, signalling the company plans to keep up its aggressive growth pace.
By: Aleksandra Gjorgievska; editors: Jillian Ward, Molly Schuetz and John Lear.
The algorithms TikTok relies on for its operations are deemed core to ByteDance overall operations, which would make a sale of the app with algorithms highly unlikely.
The app, owned by TikTok parent company ByteDance, has been promising to help emerging US labels get started selling in China at the same time that TikTok stares down a ban by the US for its ties to China.
Zero10 offers digital solutions through AR mirrors, leveraged in-store and in window displays, to brands like Tommy Hilfiger and Coach. Co-founder and CEO George Yashin discusses the latest advancements in AR and how fashion companies can leverage the technology to boost consumer experiences via retail touchpoints and brand experiences.
Four years ago, when the Trump administration threatened to ban TikTok in the US, its Chinese parent company ByteDance Ltd. worked out a preliminary deal to sell the short video app’s business. Not this time.