EMERGE Launches JustGolfStuff.com Across the U.S. in April, Provides Golf Vertical Update, including Strong Growth in March
TORONTO, April 14, 2021 /CNW/ - Following record results in March on JustGolfStuff.ca (Canada), EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company"), a leading acquirer and operator of direct-to-consumer ("D2C") e-commerce brands, announces the upcoming launch of JustGolfStuff.com, its golf equipment and apparel brand, across the United States. JustGolfStuff.com will be launching with a new Shopify-powered site in April.
The Company would also like to provide a corporate update on the golf vertical based on preliminary results:
- The golf business achieved strong organic growth in Gross Merchandise Sales ("GMS") in March 2021 across both the UnderPar.com and JustGolfStuff.ca brands. Sales momentum has continued through April to date, driven by robust sales from a campaign centered on the 2021 Masters Tournament.
- JustGolfStuff.ca (Canada) recorded its largest month ever in March 2021, achieving 357% growth in GMS compared to March 2020.
- In late Q1, JustGolfStuff.ca re-launched a refreshed Shopify-powered website theme and added hundreds of new products to the site. The new website has garnered over 1,000, 5-star reviews in the first 30 days, and includes new features such as interest-free financing, powered by Sezzle. JustGolfStuff.com (U.S.) will launch in April with the same new website design and functionality.
- Golf is EMERGE's largest vertical by GMS, and second largest by revenue, behind Grocery, another vertical that has seen strong organic growth. Expansion into the golf equipment and apparel sector is a large growth opportunity for the Company.
"JustGolfStuff is currently our fastest growing brand across the portfolio and we are excited about the upcoming U.S. launch, a multi-billion dollar market, where we are in a position to advertise products nationally to our extensive U.S. golf subscriber base from Day 1, at no incremental marketing cost," said Ghassan Halazon, Founder and CEO, EMERGE.
JustGolfStuff was acquired alongside UnderPar in November 2019 and serves as a complementary sister brand dedicated to golf products. The business saw a sharp and sustained rise as the sport of golf experienced a renewed resurgence amid the pandemic, across both new and existing demographics.
"While still young, the brand has been put on an entirely new trajectory since EMERGE acquired it, by combining a dedicated team of golf experts with our vastly improved merchandising, marketing, customer experience, and a newly minted Shopify-powered site. Receiving 1,000, 5-star reviews in 30 days is a testament," continued Halazon.
The acquisition and subsequent acceleration of JustGolfStuff.ca serves as a prime example of the power of the EMERGE playbook.
"We find ourselves in the fortunate position to be able to capitalize on shifting consumer spending habits, irrespective of a market re-opening or a prolonged stay-at-home scenario. Our diversified e-commerce portfolio is proving we can drive healthy overall organic growth under both scenarios. This is quite evident in our golf vertical, where the sport is seeing terrific growth, irrespective of macro circumstances," said Halazon.
About EMERGE:
EMERGE is a disciplined, diversified, rapidly growing acquirer and operator of D2C e-commerce brands across North America. Our network of e-commerce sites provides our members with access to meat subscriptions, groceries, golf, nearby escapes, and family offers. Our portfolio houses some of Canada's most coveted online destinations including trulocal.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com and BeRightBack.ca. EMERGE was named one of the fastest growing companies in Canada by the Startup 50, and the Globe and Mail's 2020 Canada's Top Growing Companies.
To learn more, visit www.emerge-commerce.com.
Cautionary notice
Investors are cautioned that any information released or received with respect to the transactions described herein may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Non-GAAP Measures
This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales ("GMS") should not be construed as alternatives to net income/loss determined in accordance with IFRS. GMS does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
GMS as defined by EMERGE is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.
The following provides a comparison of JustGolfStuff.ca's GMS growth to revenue growth during the same period: GMS – 357%; Revenue – 34%.
Notice regarding forward-looking statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's filing statement which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE EMERGE Commerce Ltd.
Investor Relations: James Bowen, CFA, EMERGE Commerce Ltd., 416-519-9442, [email protected]; Media Relations: Lauren Arnold, Talk Shop Media, [email protected]
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