E-commerce specialist Newegg Commerce posted big sales gains over the first half of 2021 as it improved the product offering and and expanded geographic outreach, the company announced.
Net income for the six months was $21.6 million, or five cents per diluted share, versus $18.9 million, or five cents per diluted share, in the year-prior period, the company reported.
Net sales were $1.21 billion versus $862.7 million in the year-earlier quarter, Newegg stated. Income from operations was $22.5 million versus $17.7 million in the period a year before.
In announcing the financial results, Newegg CEO, Anthony Chow said, “Over the last two years, we focused on innovation and growth-oriented initiatives to position Newegg for success in the years ahead. As a result, we diversified our revenue sources and strengthened the company’s business and operational structure. And by optimizing and expanding our vendor relationships, we enhanced our product offering and grew our geographic footprint. Our first half 2021 results were a strong validation of this strategy as we were able to grow our net sales and gross margin by 39.9% and 33.9%, respectively, as compared to the same period in 2020. We optimized products that were in high demand and promoted high-margin services. We refined Newegg’s product selection, improved relationships with suppliers by establishing a quarterly strategic partnership execution program and shared market intelligence data with our vendors to help them make strategic decisions in providing the right products, to the right customers, at the right time. We also invested in new technologies to improve customer experience, order fulfillment and delivery times.
“Additionally, we made significant investments to expand our global infrastructure with the opening of our 43,000 square foot warehouse in the Yangshan Free Trade Zone in Shanghai earlier this year. This warehouse acts as a freight collection and fulfillment center for our marketplace vendors and third-party logistics clients from which we transport merchandise to North America by freight and air. As a result of these additional expenses, our income from operations and net income increased by 26.9% and 14.0%, respectively.”
Newegg Commerce, based in City of Industry, CA , operates as a subsidiary of Hangzhou Lianluo Interactive Information Technology Co., according to Yahoo Finance.
