More Retail Earnings, More Blaming Shipping Costs For Miss
This is an excerpt from Monday's (2|8) Point of Sale retail supply chain newsletter sponsored by ArcBest. The Container Store's (NYSE: TCS ) most recent earnings call details the reality of shifting to a greater mix of e-commerce sales at a time when transportation capacity is extremely tight. To manage limited capacity, logistics providers have implemented surcharges and placed limits on its largest customers. These additional costs are putting significant strain on retailer bottom lines at a time when many are dealing with major top line declines. Fortunately for TCS, the company is not dealing with major sales declines. In fact, the company rode COVID-induced in-home spending to the tune of 21% revenue growth yoy this quarter. The cost catalyst for TCS was much of that in-home spending was done in the home . Online sales surged 98% yoy in the third quarter of fiscal 2020. "We certainly saw headwinds related to the higher mix of online sales, incurring a lot more in shipping costs than we originally expected," Chief Financial Officer Jeff Miller …
More Retail Earnings, More Blaming Shipping Costs For Miss
This is an excerpt from Monday's (2|8) Point of Sale retail supply chain newsletter sponsored by ArcBest. The Container Store's (NYSE: TCS ) most recent earnings call details the reality of shifting to a greater mix of e-commerce sales at a time when transportation capacity is extremely tight. To manage limited capacity, logistics providers have implemented surcharges and placed limits on its largest customers. These additional costs are putting significant strain on retailer bottom lines at a time when many are dealing with major top line declines. Fortunately for TCS, the company is not dealing with major sales declines. In fact, the company rode COVID-induced in-home spending to the tune of 21% revenue growth yoy this quarter. The cost catalyst for TCS was much of that in-home spending was done in the home . Online sales surged 98% yoy in the third quarter of fiscal 2020. "We certainly saw headwinds related to the higher mix of online sales, incurring a lot more in shipping costs than we originally expected," Chief Financial Officer Jeff Miller …