Entrepreneurs / Small Business  September 28, 2018

Xero Shoes grows revenue, net income for first half of 2018

BROOMFIELD — Xero Shoes, the maker of lightweight shoes and sandals, grew its sales 80 percent for the six months that ended June 30, 2018, compared to the same period in 2017.

Sales for the company, whose official name is Feel the World Inc., grew from $2.4 million in 2017 to $4.3 million in 2018, according to a semiannual financial filing the company made with the U.S. Securities and Exchange Commission.

Net income grew from nearly $79,000 for the period ended June 30, 2017 to $344,000 for the same period ended in 2018.

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Direct-to-consumer represents the largest percentage of sales at 60 percent of total sales in the six months ended on June 30. However, direct-to-consumer made up 64 percent of total sales the same period the prior year. Amazon sales grew from 17 percent of total sales in 2017 to 24 percent in 2018. And wholesale/ distributor sales represented 16 percent of total sales in 2018; it represented 19 percent of total sales in 2017.

The growth in Amazon sales is intentional, the company said in its filing, as are expanded footwear offerings. However, with the increased offerings and Amazon sales has come an increase in returns and exchanges. Direct-to-consumer sales returns grew from 7 percent to 12 percent year-over-year, while Amazon returns grew from 27 percent to 34 percent. The company added that the rate of return is still below industry norms and that the Amazon return rate decreased when compared to the six months that ended on Dec. 31. Xero added that improved sizing recommendations may have decreased those returns.

Gross profit for the six months grew 77 percent to $2.3 million.

Xero added that its operating expenses grew year-over-year by 71 percent, due largely to an increase in employees from 14 in June 2017 to 27 in June 2018. In December 2017, the company said it had 20 employees.

The company’s net gain per common diluted share grew from 1 cent to 5 cents, and its diluted shares decreased slightly from 6.43 million in 2017 to 6.39 million in 2018.

Looking ahead, Xero said it expects its sales to grow as it expands its products and markets and looks potentially into brick-and-mortar retail locations. The company plans to go from 10 styles as of Dec. 31, 2017, to 15 styles by Fall 2018.

 

BROOMFIELD — Xero Shoes, the maker of lightweight shoes and sandals, grew its sales 80 percent for the six months that ended June 30, 2018, compared to the same period in 2017.

Sales for the company, whose official name is Feel the World Inc., grew from $2.4 million in 2017 to $4.3 million in 2018, according to a semiannual financial filing the company made with the U.S. Securities and Exchange Commission.

Net income grew from nearly $79,000 for the period ended June 30, 2017 to $344,000 for the same period ended in 2018.

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