From Home Furnishing Business
Overstock Q3 Revenue Rises 12.9%, But Net Loss Increases
E-commerce retailer Overstock.com (OSTK) said third-quarter revenue rose 12.9%, but its net loss widened due largely to losses in its business unit that’s promoting Bitcoin technology.
Revenue for the quarter ended Sept. 30 totaled $441.6 million, up from $391.2 million in the same quarter last year.
The net loss of $3.1 million or 12 cents per share is up from a loss of $2.07 million or 8 cents per share in the comparable period.
The company said its retail business recorded a pre-tax loss of $900,000, including $3.9 million of impairment and bad debt charges. Its Medici unit, which is developing technology for Bitcoin, had a pre-tax loss of $3 million.
"The retail business is re-accelerating and is fundamentally sound," said Overstock founder and CEO Patrick Byrne. “Our Medici business cost us $3 million pre-tax this quarter, but that was well worth it as we achieve real progress in our blockchain and fintech initiatives that others have yet to demonstrate."
Gross margin fell to 18.1% from 18.5% in last year’s third quarter, while sales and marketing expenses increased 15% to $34.7 million in the most recent quarter.
For the nine months ended Sept. 30, revenue totaled $1.27 billion, an increase of 8.2% from $1.18 billion in the first nine months of 2015.
Nine-month net income, which included a one-time gain of $19.2 million from a legal settlement, $9.43 million or 37 cents per share. That was up from $2.34 million or 10 cents per share in the first nine months of 2015.