CNBC “Mad Money” host Jim Cramer was extremely bullish on Zulily this morning, even calling the Seattle-based daily deals site for moms and kids’ products the first legitimate competitor he’s seen to fellow Seattle online retailer Amazon.com.
“I think they can beat Amazon,” Cramer said on CNBC this morning. “Why? Because they are a technology company in the women’s apparel business. It’s a revolutionary company. I urge everyone to take a look at ZU. The reason why it’s up is because it deserves to be up.”
“Up,” may be an understatement. One day after reporting stellar Q4 results, Zulily’s stock skyrocketed more than 40 percent Tuesday and is currently trading at nearly $61 per share as of 9:50 a.m. PT.
“These guys understand women’s apparel better than anyone,” Cramer said. “They understand that retail is technology now.”
CNBC host Carl Quintanilla then noted how Starbucks, Amazon and Zulily are all based in Seattle. “It’s like the hub for mobile-based retail,” he said.
“Yes, it is,” Cramer responded. “These guys all get it … they really understand it. Zulily, you will be hearing form this company. I am not overdoing ZU.”
Zulily saw its stock soar in after-hours trading on Monday after reporting fourth quarter sales — its first reported earnings since raising $140 million in a public offering last November — that totaled $257 million, up 100 percent year over year. The company was able to earn a profit of $12.9 million in 2013, reversing a loss of $10.3 million in the prior year.
In a conference call with analysts Monday, Zulily CEO Darrell Cavens said that his company plans to continue expanding its product line beyond its historic niche of baby apparel, toys and accessories and into “new and entertaining products that our customers love,” like home decor, for example.
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. The company’s market value is now over $7 billion.