Online appliance retailer 1847 Goedeker quadrupled its sales on an acquisition in the second quarter while posting profits after an income tax benefit.
The company characterizes itself as an e-commerce destination for appliances, furniture and home goods, supplemented by a pair of showrooms, one each in New York and St. Louis. In June, it acquired Appliances Connection, significantly boosting its standing among online retailers of household appliances in the United States. With warehouse fulfillment centers in the Northeast and Midwest, as well as showrooms in Brooklyn and St. Louis, 1847 Goedeker has positioned itself as a nationwide omnichannel retailer that offers one-stop shopping for national and global brands, it stated.
For the second quarter, 1847 Goedeker net income was $4 million, or nine cents per diluted share, versus a loss of $5 million, or 99 cents per diluted share, in the year-prior quarter. Net product sales were $64.1 million versus $15.3 million in the year-earlier period. Loss from operations was $1.3 million versus $1.4 million in the quarter a year before.
The one analyst that Yahoo Finance lists as covering 1847 Goedeker had a second-quarter diluted earnings per share estimate of 13 cents. The company closed its initial public offering in June.
By merchandise category, appliance sales were $56.2 million, furniture sales were $6.2 million and other merchandise sales were $1.7 million, versus $11.5 million, 2.8 million and $983.7 million, respectively, in the 2020 period.
The company indicated that proforma second quarter products sales, which estimate what revenues would have been if the Appliances Connection acquisition had been completed on January 1, 2020, were $140.1 million versus $91.5 million for the 2020 period. Pro Forma net income was $17.3 million, or 16 cents per diluted share, versus $800,000, or one cent per diluted share, in the quarter a year previous.
Doug Moore, 1847 Goedeker CEO and director said, “We believe our strong second-quarter Pro Forma results reinforce the many operational benefits and synergies presented by the Appliances Connection acquisition. Now that the transaction is closed, we are well-positioned to scale and aggressively pursue our intermediate-term goal of achieving $1 billion in annual revenue. We have been focused on expeditiously integrating the businesses and implementing our six-point strategy for achieving consistent, profitable growth. Our fortified management team, which includes major stockholders Albert Fouerti, who is also a director, and Elie Fouerti, has been working on expanding the company’s fulfillment network footprint, integrating new technology into the supply chain, negotiating optimal terms with vendors and suppliers, and taking other steps to create a seamless e-commerce experience for customers. Along with record sales, we continued improving fill rates during the second quarter and hit 76.1% in June, up from 61.4% in June 2020. While the pandemic continues to cause certain delays in receiving inventory, we are leveraging our increased scale to obtain better treatment from suppliers and sustain fill rate improvements. We know that backing up a smooth e-commerce experience with strong fulfillment and supply chain execution is critical to attracting and retaining customers.”