Backcountry.com grew revenues and profits in the first quarter ended March 31 by deriving a higher percentage of its sales from its full-price sites compared with a year ago, Liberty Venture Group reported.
Liberty Venture reported Backcountry.com's sales rose by $10 million during the quarter, when it was able to move more merchandise through its main websites at full price rather than its flash sale websites such as steep&cheap,com, chianlove.com and whiskeymilitia.com. The shift contributed to higher average orders compared to the first quarter of 2014. Order volume was also more consistent than a year ago. The results jibe with reports from other outdoor retailers and vendors, who have reported fewer close out sales of winter sports gear during the quarter.
LVNTA said sales also grew by $10 million at Bodybuilding.com, due primarily to increased order volume on slightly lower average order values. Average order values declined in part due to the foreign exchange impact on international sales.
The increases at the two sites contributed to a 10 percent increase in sales from continuing operations at LVNTA's Digital Commerce segment, where consolidated revenue reached $276 million. Also contributing to the growth was CommerceHub, where sales grew by $6 million. CommerceHub helps vendors and retailers manage drop-shipping programs that enable retailers to greatly extend their online offerings and offer ship-from-store, in-store pick-up and other fulfillment options.
Adjusted OIBDA from LVNTA's continuing Digital Commerce companies increased 29 percent to $22 million compared with the first quarter a year earlier. The increase was attributed primarily to higher sales with the most noticeable increase coming from Backcountry.com. Adjusted OIBDA represented 8.0 percent of revenue in the first quarter of 2015, up from 6.8 percent a year earlier thanks to improved product margins and cost containment efforts which were partially offset by increased marketing and promotional spend. Operating income for the continuing Digital Commerce companies increased 25 percent to $5 million in the first quarter.
