Zulily just posted blow out numbers for its fourth quarter, reporting a 100 percent rise in fourth quarter sales to $257 million.
So, what’s next for the fast-growing and profitable daily deals site?
For one, the Seattle company is expanding beyond its historic niche of baby apparel, toys and accessories with plans to launch new product categories, building on its new-found success in the women’s apparel and home decor areas. In fact, CEO Darrell Cavens noted in a conference call with analysts today that its non-kids categories now make up a majority of its business.
That’s a significant milestone, and it suggests more is to come from Zulily in the coming months, a company which Cavens said is attempting to “change the way people shop.” In fact, Cavens said Zulily is in a “continual sprint” to keep up with demand from customers, many of whom have pushed the company to sell more home decor offerings — like bedding, dishware and kitchen appliances — as well as other products.
In 2014, Cavens said that they plan to continue their product expansion, finding “new and entertaining products that our customers love.” They also plan to push deeper into home decor, a move that will put it in more direct competition with Jason Goldberg’s Fab.com.
“Children’s apparel will always be a high priority for us, but we will keep investing to push aggressively beyond the kids’ categories,” said Cavens in today’s earnings call. “In the coming year, I see an incredible opportunity to expand our offering in the home category. To date, we have built a sizable home category, but it has happened because our customers have led us there.”
No wonder that Zulily recently inked a deal for a 700,000 square foot fulfillment center in Nevada — a space that encompasses 16 acres under one roof. It now boasts 3.2 million active customers, and showcases over 4,500 products each morning.
Not bad for a company that completed $1,800 worth of orders from three vendors in its first day of business just four years ago. “That seemed like a good start at the time, and from there the business has proceeded to grow at a rapid pace,” Cavens said.
