1847 Goedeker Inc. (NYSEAMERICAN: GOED) gained 4.2% after the company reported continued solid revenue growth for May 2021 with a 41.9% YoY increase to $44.3 million while written orders were $72.6 million.
Goederkers expects shipping patterns to resume.
Doug Moore, the company’s CEO, said that through May, they maintained a revenue run rate of over $500 million per year. Moore said that although the fill rate of 61% is still considerably below the company’s historical 85%, they are optimistic that typical shipping patterns will resume later in the third quarter as manufacturers catch up to customer demand.
Goedekers is two weeks away from the official closing of its Appliances Connection acquisition. As a combined entity, Moore said that they are executing on a proven direct-to-consumer model of current investment, enhancing scalable growth. As a result, Goedekers is planning to expand its fulfillment capabilities. This will allow Goedekers to accelerate processing times further and improve customer service nationally. Plans to open facilities in California, Texas, and Florida are moving forward, and the company expects to announce specifics of a third facility soon.
Appliances Connection implementing steps to enhance shipping speed
Appliances Connection founder and president Albert Fouerti said they are implementing a series of initiatives with major vendors to enhance shipping speed to clients, cut costs, and boost margins. Fouerti said logistics building and shipping optimization are already underway before closing the deal. He added that as they transform the way consumers shop for appliances, they believe the integration processes underway will strengthen Appliances Connection’s position to drive market share growth.
There is much potential in the US household market, estimated to be worth $22.9 billion,growing at a 13.7% CAGR, to hit $40 billion by 2025.