SHOP -Stio sales soar after migrating to Shopify

https://www.digitalcommerce360.com/2019/02/06/stios-sales-so…

SNIP…

"Stio launched in 2012 on Magento after spending the prior year building its website with digital commerce agency Blue Acorn. This platform served the retailer well for the next five years as it grew the business, but eventually it had trouble keeping up, which was a challenge because the retailer didn’t have the internal infrastructure to support constant engineering and development for the Magento platform. Stio relied on Blue Acorn’s help to keep up whenever the platform needed tweaking or maintenance.

“We grew frustrated about the ongoing development and maintenance costs to keep the lights on,” says Noah Waterhouse, chief marketing officer for Stio. “There was too much budget going into security patches and bug fixes and too much just to keep the site up rather than adding new functionalities.”

When Magento announced it was discontinuing Magento 1.14—the version of the platform Stio used—unless its users planned to sign a multi-year contract, the retailer decided to switch platforms.

Stio shopped around for other options, including Salesforce’s Commerce Cloud, but says it found it to be as expensive and labor-intensive as what it had with Magento.

The apparel retailer eventually settled on Shopify Plus in early 2018 to re-platform the site, Waterhouse says. Stio worked with web development company and digital agency Zehner over the summer of 2018 and launched the re-platformed site after four months at the beginning of October.

The timing was crucial to Stio’s bottom line. “50% of our business is in Q4 because it is seasonal and that’s compounded with holidays, so we got it in time for the rush. That was a must and they delivered on that,” Waterhouse says.

Every website migration has hiccups, but Waterhouse says it was anticlimactic once the user testing was complete and the new site was launched. “We flipped a switch, and the site worked well. Orders came in right away,” he says.

Stio saw “tremendous” fourth-quarter growth after the launch of the new site on Shopify Plus, and it did not experience any downtime issues. Page load times also decreased by 25% compared with the pre-launch. In addition, quarterly conversion rates went up 15% on the website and up 80% for mobile web compared with the year-ago period."

30 Likes

launched the re-platformed site after four months…

…timing was crucial…and they delivered on that,

once the user testing was complete…
We flipped a switch, and the site worked well. Orders came in right away,

Page load times also decreased by 25%

…quarterly conversion rates went up 15% on the website and up 80% for mobile web

Many can plan but few can implement

P/S TTM @ $172 = 19.5 Sales +44% TTM
P/S with 2.6MM shares added in Dec = 19.8
P/S with expected $1.057B 2018 Sales (+ 57% from 2017) = 17.8
P/S with expected $1.476B 2019 Sales (+ 39.6% 2018E) = 12.8
P/S using 2019E adding another 3MM shares in 2019 (just a guess)= 13.1

EV/S TTM 17.7
EV/S 2018E with 2.6MM added shares 17.8
EV/S 2019E with 3MM added shares; price at $172. (this won’t happen ; cash at no gain (this won’t happen either)= 13.2

I know some of you are better at numbers than me. Please point out my mistakes; challenge my assumptions (so I can learn).
Joe
Long SHOP