HomeMarket NewsSmall CapsOverstock's Q3 Sales Slump as Bed Bath & Beyond Acquisition Enters "Early...

Overstock’s Q3 Sales Slump as Bed Bath & Beyond Acquisition Enters “Early Stages” of Capitalization

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Revenue Fall and Missed Expectations

In Q3, Overstock.Com, Inc. (NASDAQ: OSTK) reported revenues of $373.31 million, showing a 19% decline from the previous year and falling short of the analyst consensus of $397.17 million. The company also registered adjusted EPS of $(0.61) loss, surpassing the expected $(0.72) loss.

Gross Profit Decrease and Customer Metrics

Gross profit for the quarter reached $69.96 million, down from $107.47 million in the same period last year. Active customer numbers decreased by 15% year-over-year, with 4.9 million active customers recorded. However, the company experienced a 3% year-over-year increase in the number of orders, delivering 1.9 million orders. Despite this growth, the average order value declined by 21% to $192, and orders per active customer dropped by 9% to 1.48.

Capitalizing on Bed Bath & Beyond Acquisition

Since the acquisition of the Bed Bath & Beyond brand on June 28, Overstock.Com, Inc. has been focused on capitalizing on this strategic move. The company gained access to more than 100 million customer files and established vendor relationships with major home category brands. According to Jonathan Johnson, Chief Executive Officer, β€œWe are in the early stages of capitalizing on our recent acquisition. Since launching the new Bed Bath & Beyond in the U.S. on August 1, we have been successful in acquiring new customers and reactivating past customers. Total active customers grew sequentially after over two years.” The company has also seen positive year-over-year growth in orders for the first time in over two years.

Price Action

Currently, OSTK shares are trading higher at $15.36, representing a 0.36% increase.

Source: Benzinga

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