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Zulily celebrates its IPO in Nov. 2013

Shares of Zulily are down nearly 10 percent in Nasdaq trading today following a report by ITG Research which says new customer activations have slowed during the fourth quarter.

The stock is now trading at $22.80 — just above the company’s $22 IPO price. Zulily went public in November 2013, with the stock soaring on its first day to nearly $40 per share. Shares of the online retailer, known for selling baby accessories, housewares and kids products, peaked in February at $68.

But it has been a tough road for the Seattle company in recent months.

During the company’s third quarter earnings announcement, Zulily CEO Darrell Cavens detailed an email snafu, which caused the company to cut back on marketing.

For the third quarter, the company posted revenue of $285 million and active customers of 4.5 million, an increase in both areas of 72 percent over the same period last year.

Zulily does not see a big holiday bounce like a lot of other online retailers, in part because its shipping times are far slower than companies like Amazon.com, Wal-Mart or Target.

“Our business is not as seasonal … as a lot of retailers out there,” said Cavens in an analyst call in November. “Our customers are coming back every day to see what is new and fresh and interesting. I think the use-case for Zulily tends to be different from many other retailers around the holiday case.”

The company said it estimates fourth quarter revenue in the range of $391.3 million to $416.3 million.

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