Shoes.com, the North American online shoe retail portal recently acquired by Roger Hardy, has announced an 89 percent increase in gross revenues to $60 million for the first quarter of this year. Site visits from Canada and the U.S. went up by 149 percent and 34 percent, respectively. Repeat revenues from repeat customers increased by 129 percent.
The gross margin was stable at a high rate of 44.5 percent of sales. The good results have helped Shoes.com to complete a private placement of common shares, mainly with existing shareholders, which has raised net proceeds of about $45 million. The transaction valued the company at $275 million.
Shoes.com is targeting gross revenues of more than $300 million for the full 2015 financial year. Since the beginning of the year, it has added more than 60 new brands to its offer across its various websites, building up to a total of more than 500 brands. Two other websites taken over by Hardy, Shome.ca and OnlineShoes.com, have been merged with Shoes.com in the past few months.
The management team has been strengthened with the addition of experienced professionals coming from Zappos, Lululemon, Coastal Contacts and Goldcorp. Geoff Henshaw is one of the key new appointments. The executive, who spent many years in important roles at Coastal Contacts while it was owned by Hardy, will act as vice president of retail and brand at Shoes.com.