Zulily beats estimates in first quarter of public trading

ANALYSIS_ Zulily Inc. has beaten expectations after its first quarter trading as a public company. Now, the online retailer said it aims to keep its strong momentum by reaching 1 billion dollars in sales this year. Seattle-based Zulily that targets mums and focuses on flash sales of apparel, toys and other

products, geared toward moms, has reported its first full-year profit and saw the number of active customers double to 3.2 million by year's end.

The company now expects sales to top 1.1 billion dollars this year, up from 695.7 million dollars in 2013. Profits for the e-tailer came in at 12.9 million dollars for the year ended Dec. 31, compared to 10.3 million dollars loss the previous year.

Likewise, fourth-quarter sales reached 257 million dollars, two times the amount reached in the same period a year earlier.

Zulily beats expectations and invests heavily in 2014

The online apparel retailer will invest between 45 and 55 million dollars in 2014, heavily bidding to improve their logistic network. The company recently leased a new distribution centre in Nevada that, according to its executives, will double the size of its existing facility in that state. Besides, the company plans to invest in "significant automation" to move items faster once they reach the distribution centre.

"In the coming year, I see an incredible opportunity to expand our offer in the home category," Cavens said in an earnings call earlier this week.

Soon after reporting seasonal figures, shares at Zulily gained 10.15 percent in after-hours trading to 47.19 dollars a piece as fourth-quarter earnings of 10 cents per share on revenue of 257 million dollars widely overcame Wall Street expectations. According to data gathered by Bloomberg, analysts predicted 4 cents per share on revenue of 225.6 million dollars.

Zulily priced its IPO at 22 dollars a share in November, with RBC Capital raising their price target on the stock to 50 dollars in a research note issued on Tuesday, pointing to a potential upside of 16.71 percent from the stock's previous close.