NEW YORK (AP) — Shares of newly public Zulily surged 15 percent in premarket trading after the online retailer reported fourth-quarter revenue that easily topped Wall Street expectations on strong sales of its clothing for moms and children.
The company, which went public in November, also gave a bright outlook for the first quarter and year.
CEO Darrel Cavens said the company planned to invest aggressively in technology to fill orders so that it can grow over the long term. Zulily, based in Seattle, had 3.2 million active users at the end of 2013, double its user base in 2012.
Net income for the three months ended Dec. 29, after paying preferred dividends, totaled $4.5 million, or 5 cents per share. That compares with a loss of $30.7 million, or 71 cents per share last year. Analysts expected earnings of 4 cents per share, according to FactSet.
Revenue doubled to $257 million from $128.5 million, easily outpacing Wall Street expectations of $225.5 million.
Zulily is now forecasting revenue of $225 million to $235 million for the first quarter and revenue of $1.1 billion to $1.15 billion for the year. Analysts had been projecting earnings of only $222.9 million for the quarter and revenue of $1.11 billion.
Shares rose $6.30 to $47 before the opening bell. The stock debuted at $22 per share.