From Cabot Wealth Advisory 3/24/14 Sign up for Cabot Wealth Advisory—it's free!
Zulily (ZU) is an online retailer aimed primarily at mothers. Admittedly, there’s nothing unusual about that. What makes Zulily unusual is its flash-sale model, in which limited quantities of goods are available for limited periods of time.
In fact, you can’t even peruse the company’s website without providing an email address. And once you do provide it, you’ll be targeted with offers for the company’s merchandise, ideally tailored to exactly what you need (or want—sometimes, it’s hard to know the difference). I gave a fake email address so I could nose around.
Zulily offers about 50 to 60 new deals every day, lasting from one to three days. And prices during these sales are roughly 50% off list, so shoppers are trained to pay attention, in hopes of catching a bargain.
In addition to clothing, the company offers shoes and accessories for women and their children as well as home furnishings. And now menswear is offered, too, so the company is expanding.
And now there’s a Zulily app so you can use your phone to stay in touch with latest deals!
Sales at the company increased by 132% in 2012 and 110% in 2013, so growth is very good. And the chart is attractive, too.
ZU came public in November at 22, but never traded below 35. It built a nice base at that level, and then gapped higher in February when 2013 results were announced. Since then, it’s been working on consolidating that gain, and the longer it trades calmly between 55 and 65, the greater the prospects for the next leg up.
So, you could just jump in and buy ZU here, but it would be smarter to become a regular reader of Cabot Market Letter, which profiled the stock last week, and which gives regular updates every week of all the stocks in its Model Portfolio. Analyst Mike Cintolo “has lost blood, and yet keeps his stomach,” so you can count on him to do the right thing in the long run.” Seneca would be proud.
2601 Elliott Avenue, Suite 200
Seattle, WA 98121
|Index Membership: N/A
Industry: Discount, Variety Stores
Full Time Employees: 1,110