Online Shopping Dominates Holiday Sales Results so Far

Ecommerce earnings recap: What you missed from FedEx and Nike

As the holiday shopping season concludes, retail businesses and prominent fulfillment providers have disclosed their financial performance in the realm of e-commerce. 

Ecommerce earnings recap: What you missed from FedEx, Nike 

The top 1000 e-commerce retailers in North America have shared their earnings outcomes for the latest fiscal quarter. The decrease in FedEx's shipment volume could have wider ramifications for other participants in the e-commerce sector. This quarter's essential summary of e-commerce earnings is outlined below.

Number 1: Top-ranked Amazon.com Inc. 

In its fiscal third quarter, concluding on September 30, Amazon achieved its peak operating income to date. The year-over-year growth in operating income was extraordinary, almost quadrupling and experiencing a remarkable 343% increase.

Number 2: Walmart Inc. 

In its fiscal 2024 third quarter, concluding on Oct. 27, Walmart announced a notable 24% growth in U.S. online sales. During the same period, global e-commerce sales increased by 15%, although international e-commerce experienced a 3% decline. U.S. comparable sales saw a robust growth of 4.9%, contributing to a 5.2% increase in total revenue, which reached $160.8 billion.

Number 5: Target Corp. 

In its fiscal third quarter, which concluded on Oct. 28, the mass merchant witnessed a 4.9% decrease in sales, dropping from $26.12 billion to $25 billion. Additionally, Target's online sales experienced a year-over-year decline of 6% during the same quarter. Furthermore, for the initial nine months of the fiscal year, Target reported a 6.7% year-over-year decrease in online sales.

Number 6: Costco Wholesale Corp. 

Costco reported a 6.1% increase in net sales, reaching $56.72 billion for its first fiscal quarter of 2024, concluding on Nov. 26. During the same period, e-commerce comparable sales saw a growth of 6.3%. The online sales performance was particularly robust for e-gift cards, snacks, and pet items, according to the retailer.

 Number 9: Nike Inc.

In its second fiscal quarter of 2024, concluding on Nov. 30, Nike Inc. disclosed growth in both digital sales and total revenue. The company reported a 1% year-over-year increase in revenue, reaching $13.4 billion, while digital sales experienced a 4% growth.

FedEx Corp. Servicing 478 of the Top 1000 as a Fulfillment Vendor

In its fiscal 2024 second quarter, which concluded on Nov. 30, 2023, FedEx Corp. noted a rise in operating income for its Ground and Freight divisions, accompanied by a decline in the Express division. The total operating income witnessed a 17% increase, reaching $1.4 billion, despite an overall 3% decrease in total FedEx revenue for Q2, amounting to $22.2 billion.

What implications can be drawn from this?

• FedEx disclosed a continuous decline in package volume for the 10th consecutive quarter. However, the diminishing rate of these decreases may suggest a potential turnaround in volume in the coming future. 
• Nike, like other apparel retailers this quarter, faced challenges in drawing consumers to its website and app, except during shopping holidays such as Black Friday and Singles Day.

The recent update on e-commerce earnings, featuring insights from companies like FedEx and Nike, highlights notable trends and shifts in the industry. FedEx's sustained decline in package volume for the 10th consecutive quarter sparks interest, with the diminishing rate potentially signaling a turning point in the near future. Meanwhile, Nike, alongside other apparel retailers, faces challenges in attracting consumers to its digital platforms outside of major shopping events. 

This e-commerce earnings recap provides a snapshot of the evolving dynamics within the retail and delivery sectors, offering valuable insights into the current landscape and potential trajectories for these key players.