1847 Goedeker Continues Strong Q2 Performance with Record Revenue Up 41.9% in May to $44.3M on a Combined Proforma Basis

Rhea-AI Summary

1847 Goedeker Inc. (GOED) reported record revenues for May 2021 at $44.3 million, a significant 41.9% increase from the previous year. Their written orders totaled $72.6 million. Despite a low fill rate of 61%, the company anticipates a return to normal shipping trends by the third quarter. Following the acquisition of Appliances Connection, Goedekers plans to open new fulfillment centers in Texas, California, and Florida to enhance logistics. The U.S. household appliance market is projected to reach $40 billion by 2025, growing at a 13.7% CAGR.

Positive

• Record revenue for May 2021 at $44.3 million, up 41.9% year-over-year.
• Written orders reached $72.6 million.
• Anticipation of improved shipping trends in the third quarter.
• Plans for new fulfillment centers in key markets to enhance processing times.
• Growth potential in the U.S. household appliance market projected to reach $40 billion by 2025.

Negative

• Current fill rate is only 61%, significantly below the historical rate of 85%.

1847 Goedeker Inc. (NYSE American: GOED) (“Goedekers” or the “Company”), the largest pure-play online retailer of household appliances in the US, is pleased to report continued strong growth with record revenue for the month of May 2021, up 41.9% from May 2020 to $44.3 million on May 2021 written orders of $72.6 million.

“We continue to operate at more than a $500 million annual revenue run rate through May. While our fill rate of 61% remains well below our historical 85% rate, we continue to believe we will see a return to normal shipping trends as manufacturers catch production up to consumer demand in the latter part of the third quarter,” stated Doug Moore, CEO of Goedekers. “We are now two weeks past the official closing of our Appliances Connection acquisition, and as a combined company, we are executing on a proven direct-to-consumer, or DTC, model of current investment driving scalable growth, and as such, plan to further expand our fulfillment capabilities with the addition of fulfilment centers in key markets, enabling us to further speed up processing times and better serve customers nationally. Current plans are accelerating to open facilities in Texas, California, and Florida, and we anticipate announcing more details regarding the addition of a third facility in the coming weeks.”

“Building on logistics and shipping optimization already underway prior to the close of the deal, as well as ongoing integration of logistics and other key operations, we are implementing a series of initiatives with key vendors to increase shipping speed to customers, cut costs, and increase margins,” said Albert Fouerti, President and Founder of Appliances Connection. “I believe the integration steps underway will fortify our position to accelerate market share growth, making us a formidable force in the consumer appliances market as we change the way Americans shop for appliances.”

The US household appliance market, estimated at $22.9 billion and growing at a 13.7% CAGR, is expected to reach $40 billion by 2025.

About 1847 Goedeker Inc.

1847 Goedeker Inc. is an industry leading e-commerce destination for appliances, furniture, and home goods. Through its June 2021 acquisition of Appliances Connection, Goedekers created the largest pure-play online retailer of household appliances in the US. With warehouse fulfilment centers in the Northeast and Midwest, as well as showrooms in Brooklyn, New York, and St. Louis, Missouri, Goedekers is a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. Goedekers and Appliances Connection carry many household name-brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also carries many major luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Viking among others and sells furniture, fitness equipment, plumbing fixtures, televisions, outdoor appliances, and patio furniture, as well as commercial appliances for builder and business clients. Learn more at www.Goedekers.com.

Forward Looking Statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on 1847 Goedeker Inc.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” of the reports that we file with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and 1847 Goedeker Inc. undertakes no duty to update such information except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210616005532/en/

FAQ

What was Goedekers' revenue for May 2021?

Goedekers reported a revenue of $44.3 million for May 2021, marking a 41.9% increase from May 2020.

What are Goedekers' future plans for fulfillment centers?

Goedekers plans to open fulfillment centers in Texas, California, and Florida to improve logistics and processing times.

What is the current fill rate for Goedekers?

The current fill rate is 61%, which is below the historical average of 85%.

What is the expected growth for the U.S. household appliance market?

The U.S. household appliance market is expected to grow to $40 billion by 2025, at a CAGR of 13.7%.

What were Goedekers' written orders for May 2021?

Goedekers' written orders for May 2021 totaled $72.6 million.