Dive Brief:
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Women’s and children’s flash-sales clothing retailer Zulily reported a 72% increase in Q3 sales and says it will reach sales of $1.2 billion in sales for the year.
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The Seattle-based company also said that half of its orders are now coming from mobile shoppers.
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The retailer's stock sunk after the news that its projected sales for the year would miss estimates. Analysts said that could be because Zulily isn’t jumping on the price-slashing bandwagon to boost holiday sales.
Dive Insight:
Flash-sales retailer Zulily has been seeing healthy sales growth at a time when that sales model has lost its luster, hitting the magical billion-dollar mark five years after its launch. But while the retailer has also seen 72% more active customers than last quarter for a total of 4.5 million, many analysts expected more. One question on many people’s minds is whether Zulily can maintain success with the flash-sales approach.