Yahoo Finance Shopify (SHOP) Witnesses Record-Breaking Black Friday Sales
Shopify SHOP recently announced that it recorded sales of $3.36 billion on Black Friday, which marked a 17% year-over-year increase. It catered to more than 7.9 million unique shoppers who purchased from a Shopify retailer.
The top-selling cities on Black Friday were London, Los Angeles and New York while the top product categories included apparel & accessories, followed by health & beauty, and home & garden.
The record-breaking sales by merchants peaked at $3.5 million per minute at 12:01 PM EST and constituted 15% of cross-border orders worldwide.
Per Insider, Black Friday, which is one of the biggest e-commerce events, is expected to reach around $9 billion in online sales this year. This establishes a market share of around 37% for Shopify, which is significantly large.
What is Driving Growth at Shopify?
Shopify helps its merchants to discover and connect with more buyers and deepen their relationships with existing customers through its best-in-class retail point-of-sale offerings. This has helped the company track not only SMBs but also large retailers as it provides them with hassle-free point-of-sales software solutions.
Well-renowned brands, including department store, Schoffields, and designer apparel, Totima, implemented the point-of-sale Pro solutions for their locations recently. Besides this, the company also onboarded eight new merchants with over 20 locations each and one with over 175 locations. This led the offline gross merchandise value to grow 35% year over year in third-quarter fiscal 2022.
Shopify Inc. Price and Consensus
Shopify Inc. price-consensus-chart | Shopify Inc. Quote
Shopify also introduced Shopify POS Go in late September to provide retail merchants of any size with new AI technology to close sales with customers anywhere. With POS Go, merchants can close sales anywhere and take payments securely and smoothly.
Shopify Plus, which provides merchants with high-value features, also continues to gain retailers as in the third-quarter fiscal 2022 it brought in electronics manufacturer Panasonic Technics, jewelry designer Stella and Dots, children's toy maker Melissa and Doug, and international brands like the leading athletic footwear company, Converse Japan, nutrition and vitamin supplement manufacturer GNC India, footwear line Superga Italy and many more.
All of this drove merchant solutions revenues to $989.9 million, up 26% year over year in third-quarter fiscal 2022.
Shopify’s partnerships with global companies are also expanding its user base and aiding its growth. Its recent collaboration with KPMG, one of Canada's largest systems integrators, will bring Shopify solutions to KPMG's clients to enable seamless commerce on their transaction platform of choice.
Nonetheless, the headwinds that Shopify faces are from a hit in the e-commerce business with the re-opening of retail stores and customers switching back to the offline mode of shopping. Per Economic Times global, e-commerce revenues are anticipated to shrink this year due to supply chain issues and rising inflation, and the industry is expected to generate $3.74 trillion in sales, which is $95 billion less than the previous year.
Shares of Shopify have declined 73.3% year to date compared with the Zacks Computer and Technology Sector, which fell 31.8%.
Zacks Rank & Other Stocks to Consider
Shopify currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same sector are eGain EGAN, Bel Fuse BELFB and Clearfield CLFD, all sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of eGain have declined 14.9% year to date. The Zacks Consensus Estimate for earnings is pegged at 4 cents per share, which increased 33% in the past 30 days.
Shares of Bel Fuse and Clearfield have gained 192% and 54.9%, respectively, in the same period. The earnings estimate for Bel Fuse is pegged at $1.04 per share that rose 55% over the past month whereas the earnings estimate for Clearfield is at $1.02 per shares, up 20% in the past 30 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
eGain Corporation (EGAN) : Free Stock Analysis Report
Clearfield, Inc. (CLFD) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
