Dive Brief:
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Zulily Inc. reported Q4 net sales of $257 million on Monday, a 100% increase from last year. The company's full year net sales were $695.7 million, a similar 110% increase from a year ago.
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Income stats were also impressive: Q4 net income rose nearly 300% to $12.8 million, and the full year’s net rose from a net loss of $10.3 million to net gain of $12.9 million.
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As the first report of Zulily’s performance since its November IPO, the news caused television investor guru Jim Cramer to declare that the little online marketplace is beating Amazon at its own game.
Dive Insight:
After a skyrocketing IPO, investors have wondered whether Zulily could maintain its speed or even turn a profit. With the good news, the buzz about this little company -- that it's highly adept at the e-commerce game -- seems to be holding.
Zulily's strategy is an interesting one in retail. The flash-sales company pays no mind to the social-media adventures of the young, leaving behind name-brands for boutique ones and trusting moms have the time and the money to dedicate themselves to scoring finds that are special. Another key to Zulily’s success may be found in their IPO prospectus -- they believe that mothers browsing and buying at Zulily see it as time well spent.
