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Amazon Sales Soar 23%, VF Revenues Slide, Carter’s Hangs On

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Amazon Jeff Bezos

Unless you’re Amazon (or a handful of others) right now, releasing quarterly reports probably isn’t a most favored moment.

Here’s a look at how the e-commerce giant, VF Corp. and Carter’s fared in their most recent quarters.

Amazon

Ever the bearer of good news for itself and not-so-good news for the rest of retail, Amazon reported another quarter of sizable sales growth.

For the period ended March 31, Amazon reported sales up 23 percent to $35.7 billion. Excluding the impacts of foreign exchange rates, that growth was 24 percent for the quarter.

Net income swelled more than 41 percent to $724 million, up from $513 million in the first quarter of 2016.

Amazon founder and CEO Jeff Bezos’s sole statement in the release was about the company’s current success in India.

“Our India team is moving fast and delivering for customers and sellers. The team has increased Prime selection by 75 percent since launching the program nine months ago, increased fulfillment capacity for sellers by 26 percent already this year…” Bezos said. “We’re grateful that customers are responding—Amazon.in is the most visited and the fastest growing marketplace in India. It’s still Day 1 for e-commerce in India, and I assure you that we’ll keep investing in technology and infrastructure while working hard to invent on behalf of our customers and small and medium businesses in India.”

For the second quarter, Amazon expects sales growth between 16 percent and 24 percent to reach between $35.25 billion and $37.75 billion, factoring in the impact of unfavorable exchange rates.

VF

At VF, the first quarter was less to write home about.

Revenue in the three-month period ended April 1, was down 2 percent to $2.6 billion, but the company said its international and direct-to-consumer platforms, plus its Outdoor & Action Sports segment delivered stronger results in the quarter.

Operating income fell 7 percent to $291 million compared to the previous year’s quarter. VF also said its inventories were up 2 percent in the period.

“VF’s first quarter results were right in line with our expectations. The company’s largest brands and international and direct-to-consumer platforms performed well, delivering solid results against a retail backdrop that continues to experience significant dislocation,” VF president and CEO Steve Rendle, said. “Our diversified value-creation model and our focus on becoming a more agile and consumer-centric organization position us to accelerate growth through 2017 and execute against our recently announced 2021 strategic growth plan.”

In looking ahead to the rest of 2017, VF said revenue is expected to increase at a low single-digit percentage and earnings per share will be down in the low single-digits.

Carter’s

For the first quarter of 2017, Carter’s reported net sales up 1.2% to $732.8 million thanks to growth in domestic retail and wholesale sales. The children’s wear company’s international business didn’t fare as well. Skip Hop, a global lifestyle brand for families with you children, which Carter’s acquired in February, contributed $10.4 million to net sales in the quarter.

The retailer’s net income dropped 13.6% to $46.7 million compared to $54 million in the same period last year.

“We achieved our sales and earnings objectives in the first quarter,” Carter’s chairman and CEO Michael D. Casey said. “Stronger than planned demand in our wholesale and e-commerce businesses helped to offset the effects of delayed tax refunds to families with young children and a later Easter holiday. We have seen a meaningful improvement in sales trends in April, driven by Easter holiday shopping, and expect good growth in sales and earnings in the balance of the year.”

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