Overstock.com Reports Financial Results for Second Quarter 2023

July 30, 2023  by HFBusiness Staff in Business Strategy, Industry   

Second Quarter 2023 Financial Highlights
~ Total net revenue was $422 million, a decrease of 20% year-over-year
~ Gross profit of $94 million, or 22.4% of total net revenue
~ Operating loss of $4 million
~ Net loss of $73 million
~ Diluted net loss per share of $1.63; Adjusted diluted net loss per share (non-GAAP) of $0.02
~ Adjusted EBITDA (non-GAAP) of $8 million, which represents 2.0% of net revenue
~ Cash and cash equivalents totaled $343 million at the end of the second quarter

“The acquisition of the Bed Bath & Beyond brand is the beginning of a new phase of growth for us,” said Overstock CEO Jonathan Johnson. “The successful launch and early performance of our Bed Bath & Beyond business in Canada has been encouraging. The Bed Bath & Beyond brand is strong. In Canada, customers want to buy – and are comfortable buying – from the new Bed Bath & Beyond website.”

“We are optimistic about our future with this new brand in the U.S.,” continued Johnson. “The combination of a highly recognized and much-loved consumer home brand and our asset-light operating model should meaningfully grow and scale our business in the U.S. and Canada.”

“We know there is work to be done to win Bed Bath & Beyond customers and retain our existing loyal customers through this transition. We have the right strategies, the right action plan, and the right people in key positions to execute this transformation. The entire organization is focused on ensuring the success of the Bed Bath & Beyond U.S. launch, still targeted for early August.”

“The team continued to execute well during the second quarter,” Johnson stated. “As we navigated an intensely competitive environment well with our asset-light business model, we were able to provide smart value to our customers, improve our year-over-year revenue trend, and deliver another quarter of positive adjusted EBITDA.”

“Our balance sheet remains strong with over $300 million in net cash, setting us up well to execute the transformative re-branding of our furniture and home furnishings e-commerce business. We look forward to providing an update on our re-branding efforts and our second quarter 2023 performance during our earnings call.”

Second Quarter 2023 Operational Metrics*
~ Active customers of 4.6 million, a decrease of 29% year-over-year
~ Last Twelve Months (LTM) net revenue per active customer of $361, a decrease of 1% year-over-year
~ Orders delivered of 1.8 million, a decrease of 16% year-over-year
~ Average order value of $234, a decrease of 5% year-over-year

~ Orders per active customer of 1.56, a decrease of 5% year-over-year
~ Orders placed on a mobile device were 51% of gross merchandise sales

*Certain terms, such as active customers, LTM net revenue per active customer, orders delivered, average order value, and orders per active customer are defined under "Supplemental Operational Data" below.

Earnings Webcast and Replay Information

Overstock will hold a conference call and webcast to discuss its second quarter 2023 financial results. A replay of the conference call will be available at http://investors.overstock.com starting two hours after the live call has ended