S&P Global Announces Leadership Succession

Domestic Segment Q3 FY21 Results: Domestic revenue of $10.85 billion increased 21.0% versus last year. The increase was primarily driven by comparable sales growth of 22.6%, which was partially offset by the loss of revenue from permanent store closures in the past year. Domestic online revenue of $3.82 billion increased 173.7% on a comparable basis, and as a percentage of total Domestic revenue, online revenue increased to approximately 35.2% versus 15.6% last year. Domestic gross profit rate was 24.0% versus 24.3% last year. The gross profit rate decrease of approximately 30 basis points was primarily driven by higher supply chain costs as a result of the increased mix of online revenue and lower profit-sharing revenue from the company’s private-label and co-branded credit card arrangement. These pressures were partially offset by a more favorable promotional environment. International Segment Q3 FY21 Results: International revenue of $1.0 billion increased 25.4% versus last year. This increase was primarily driven by comparable salesgrowth of 27.3%, which was partially offset by the impact of approximately 140 basis points of negative foreign currency exchange rates. International GAAP gross profit rate was 19.0% versus 22.5% last year.

Dear Industry Member: I'm pleased and excited to announce that longtime ACMA staffer Paul Miller has been promoted to the new position of Executive Vice President & Managing Director. Paul has been a familiar fixture among ACMA members and the overall e-com/DM/catalog industry for years. A "jack of all trades" at the ACMA since 2010, Paul (on the left of the picture with members of the group he led in meetings on Capitol Hill in May) has been responsible for bringing on many new members over the years and the steady growth of the annual ACMA Forum, making it the can't-miss event is has become. Thanks largely to Paul's diligent management, the May 2024 event was off the charts this year compared to 2023, with attendance up 33% and overall revenues increasing by 58%.

Gross profit increased 5% to $219.1 million, or 52.2% of sales, compared to $209.1 million, or 58.5% of sales, in the second quarter of 2021. The 630 basis point decrease in gross margin was primarily driven by higher inbound freight, higher product costs and the unfavorable impact of foreign currency exchange rates, partially offset by price increases. Selling, general, and administrative (“SG&A”) expenses increased 10% to $150.8 million, compared to $136.7 million in the second quarter of 2021. As a percentage of sales, SG&A expenses decreased 230 basis points to 35.9% from 38.2% in the prior year period, primarily driven by non-variable expense leverage on higher sales, partially offset by higher variable expenses driven by higher distribution and logistics costs. Operating income decreased 6% to $68.3 million, or 16.3% of sales, compared to $72.4 million, or 20.2% of sales during the prior year quarter. Net income decreased 18% to $46.3 million, or 11.0% of sales, compared to $56.2 million, or 15.7% of sales in the prior year quarter; Net income per diluted share decreased 16% to $0.53, compared to $0.63 per diluted share in the prior year quarter.