Top 5 and Bottom 5 Retailers of Q2 2013
Second quarter financial results in retail were up slightly overall, but the extreme differences between the top and bottom retailers shows there is intense pressure to get it right. Find out which companies continue to roll forward with strong momentum and which companies need to gear up for a major turnaround. Companies on the winner’s and loser’s list include Amazon, Barnes & Noble, Cabela's, Lowe's and Aeropostale.
According to David Berman, founder of Durbin Capital, "We actually think it's going to be a lot worse than people think. We thought things would bounce back, but they don't seem to have. The consumer, as I see it, is actually not weak. I think the retailer is weak." Berman's statements were consistent with what RIS News has been reporting for years by commenting that retail is in a new paradigm with the ability for consumers to shop from anywhere via tablets, etc. The winners will be the retailers that can integrate the experience online and in stores.
RIS News has gathered data on the net sales revenues for 35 retailers in a range of verticals and compared them with the figures for the same quarter in 2012, measuring the percentage change between them. Using this calculation, RIS has determined the top five and bottom five retailers in terms of percentage revenue change for Q2 2013:
Top 5 Retailers of Q2 (based on net sales for Q2 2013 compared to Q2 2012):
Cabela's continues its strong double-digit growth keeping a positive outlook after a 20.7% increase, generating revenues of $756 million. Urban Outfitters ranked third with a 12% increase and Lowe's took fourth with a 10.3% increase, establishing their ranking in the Top 5. This quarter, Amazon regained its ranking, leading the Top 5 with a 22% increase, reporting net sales of $15.7 billion.
"We're so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content," said Jeff Bezos, founder and CEO of Amazon.com, crediting the performance of its Kindle for its continued success.
Of the 35 retailers gathered, 23 reported positive gains for the second quarter. Among those that reported significant sales increase and just missed the Top 5 were Home Depot (9.5%), Family Dollar and Ross Stores (9%), Dollar Tree (8.8%) and Gap and TJX Companies (8%).
Bottom 5 Retailers of Q2 (based on net sales for Q2 2013 compared to Q2 2012):
While 12 of the retailers researched showed negative results, the question is if those retailers can work some magic and make a comeback by year end. GameStop (-10.7%) recorded the second largest decrease in the Bottom 5 following its 6.8% increase in Q1, but CEO Paul Raines is confident that the retailer will see a turnaround and finish the year strong.
"Through two quarters, the year has played out as expected," stated Raines. "During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One. As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market."
No stranger to the Bottom 5, JCPenney ended Q2 with a loss of 11.9%, an improvement from Q1's 16.4% loss. Between its high profile struggles, including the Martha Stewart controversy, the Bill Ackman boardroom battle, and the end of the Ron Johnson era to name a few, one can't help but wonder – will Ullman be able to get the JCP train back on the tracks?
Mike Ullman, CEO of JCPenney said, "Since I returned to JCPenney four months ago, we have moved quickly to stabilize our business – both financially and operationally – and we have made meaningful progress in important areas of the business. There are no quick fixes to correct the errors of the past. That said, we have identified the challenges, put solid plans in place to address them and have experienced and capable people in key roles to do so."
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According to David Berman, founder of Durbin Capital, "We actually think it's going to be a lot worse than people think. We thought things would bounce back, but they don't seem to have. The consumer, as I see it, is actually not weak. I think the retailer is weak." Berman's statements were consistent with what RIS News has been reporting for years by commenting that retail is in a new paradigm with the ability for consumers to shop from anywhere via tablets, etc. The winners will be the retailers that can integrate the experience online and in stores.
RIS News has gathered data on the net sales revenues for 35 retailers in a range of verticals and compared them with the figures for the same quarter in 2012, measuring the percentage change between them. Using this calculation, RIS has determined the top five and bottom five retailers in terms of percentage revenue change for Q2 2013:
Top 5 Retailers of Q2 (based on net sales for Q2 2013 compared to Q2 2012):
| Amazon | +22% |
| Cabela's | +20.7% |
| Urban Outfitters | +12% |
| Lowe's | +10.3% |
| O'Reilly Automotive | +10% |
Cabela's continues its strong double-digit growth keeping a positive outlook after a 20.7% increase, generating revenues of $756 million. Urban Outfitters ranked third with a 12% increase and Lowe's took fourth with a 10.3% increase, establishing their ranking in the Top 5. This quarter, Amazon regained its ranking, leading the Top 5 with a 22% increase, reporting net sales of $15.7 billion.
"We're so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content," said Jeff Bezos, founder and CEO of Amazon.com, crediting the performance of its Kindle for its continued success.
Of the 35 retailers gathered, 23 reported positive gains for the second quarter. Among those that reported significant sales increase and just missed the Top 5 were Home Depot (9.5%), Family Dollar and Ross Stores (9%), Dollar Tree (8.8%) and Gap and TJX Companies (8%).
Bottom 5 Retailers of Q2 (based on net sales for Q2 2013 compared to Q2 2012):
| JCPenney | -11.9% |
| Gamestop | -10.7% |
| Barnes & Noble | -8.5% |
| Bon-Ton Stores | -6.3% |
| Aeropostale | -6% |
While 12 of the retailers researched showed negative results, the question is if those retailers can work some magic and make a comeback by year end. GameStop (-10.7%) recorded the second largest decrease in the Bottom 5 following its 6.8% increase in Q1, but CEO Paul Raines is confident that the retailer will see a turnaround and finish the year strong.
"Through two quarters, the year has played out as expected," stated Raines. "During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One. As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market."
No stranger to the Bottom 5, JCPenney ended Q2 with a loss of 11.9%, an improvement from Q1's 16.4% loss. Between its high profile struggles, including the Martha Stewart controversy, the Bill Ackman boardroom battle, and the end of the Ron Johnson era to name a few, one can't help but wonder – will Ullman be able to get the JCP train back on the tracks?
Mike Ullman, CEO of JCPenney said, "Since I returned to JCPenney four months ago, we have moved quickly to stabilize our business – both financially and operationally – and we have made meaningful progress in important areas of the business. There are no quick fixes to correct the errors of the past. That said, we have identified the challenges, put solid plans in place to address them and have experienced and capable people in key roles to do so."
For related content:
Top 5 and Bottom 5 Retailers of Q1 2013
Top 5 and Bottom 5 Retailers of Q4 2012
Abercrombie CEO: Heated Response to 'Cool' Remarks
Top 5 and Bottom 5 Retailers of January 2013
Top 5 and Bottom 5 Retailers of Q3 2012
Top 5 and Bottom 5 of Q2 2012
Top 5 and Bottom 5 Retailers of Q1