Overstock.com, the online platform for furniture, home decor, and other household items, reported a 20% decline in revenue for the second quarter. The company’s active customer base also dropped by 29%, totaling 4.6 million. Despite these challenges, Overstock.com managed to beat analysts’ expectations for adjusted losses per share.
Overstock.com’s second-quarter revenue came in at $422.2 million, which is lower than the previous year. Analysts had predicted even lower revenue of $409.6 million.
Adjusted Losses Per Share
Stripping out one-time items, Overstock.com reported a loss of two cents per share. This result surpassed analysts’ expectations for a loss of 11 cents per share.
Acquisition of Bed Bath & Beyond
Overstock.com highlighted the successful launch and early performance of its newly acquired Bed Bath & Beyond business in Canada. The company expressed its optimism for the future of this brand in the U.S., with the launch targeted for early August. Overstock.com completed the acquisition of Bed Bath & Beyond’s brand and certain intellectual-property assets for $21.5 million.
As of June 30, 2022, Overstock.com’s cash position decreased from $442.8 million to $343.1 million. However, CEO Jonathan Johnson emphasized that the balance sheet remains strong, with over $300 million in net cash, enabling the company to execute its transformative re-branding plans.
Overstock.com acknowledged operating in an intensely competitive environment but commended its team’s ability to execute well during the second quarter.