On Tuesday, Raymond (NS:RYMD) James maintained a Market Perform rating on Shopify (NYSE: NYSE:SHOP) stock, a prominent player in the IT Services industry with a market capitalization of $144.8 billion, following the announcement of the company's record-breaking sales during the Black Friday Cyber Monday (BFCM) weekend.
Shopify reported a 24% year-over-year increase in sales, reaching a new high of $11.5 billion, aligning with the company's broader revenue growth trend of 23.5% over the last twelve months.
The growth during the Cyber Weekend, which includes Cyber Monday, was approximately 25% year-over-year, marking an acceleration from Black Friday's growth in the low-20s percentage range.
The company also revealed a slight increase in cross-border sales, which constituted 16% of global orders, up from 15% in the previous year. The number of merchants hitting their highest sales day on the Shopify platform rose to 67,000, an increase of 12,000 from the 2023 retail holiday. However, the number of new merchants making their first sale on Shopify this year was slightly lower, at 16,500, compared to last year's 17,500.
Average cart sizes remained relatively stable at $108.56, a slight uptick from $108.12 last year, and saw a 1% increase on a constant currency basis. A significant rise in consumer participation was observed, with 76 million consumers purchasing from Shopify brands, up from 61 million in the previous year. The most popular categories for 2024 included tops, cosmetics, fitness and nutrition, pants, and activewear.
Shopify's international expansion efforts seem to be fruitful, as the UK, Australia, and Germany joined the US and Canada as the top-selling countries. Additionally, Shop Pay continued to show robust growth, with a 58% year-over-year increase, following a 60% increase the previous year.
The gross merchandise volume (GMV) growth through the broader BFCM period was slightly better than the 22% growth for Black Friday alone and suggests a modest upside to the consensus forecast of 23% year-over-year growth. InvestingPro analysis reveals that 26 analysts have revised their earnings upwards for the upcoming period, with the company expected to maintain profitability this year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.