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Salt Lake City – Revenue for e-commerce retailer Overstock decreased 34% year-over-year, coming in at $528.1 million for the second quarter ending June 30 compared with $794.5 million in last year’s second quarter.
“While the retail environment was challenging throughout the second quarter and sales results were below my expectations, we continued to deliver smart value to our customers, make progress on our strategic initiatives and provide our partners with an efficient and effective channel to increase their unit sales,” said Jonathan Johnson Overstock CEO. “Our continued profitability and strong balance sheet support that our business model is a winning one, able to withstand jolts in the market.”
Among the metrics for Q2:
| • | Active customers were 6.5 million, down 29% year over year |
| • | Last twelve months (LTM) net revenue per active customer was $365, up 18% year over year |
| • | Orders delivered were 2.1 million, a decrease of 43% year over year |
| • | Average order value was $247, up 16% year over year |
The company posted a gross profit of $121 million or 22.9% of total net revenue compared with $174 million in last year’s second quarter. Diluted EPS for continuing operations came in at 12 cents for this year’s second quarter vs. $1.73 in in Q2 2021. Diluted EPS for total operations was 12 cents this quarter vs. $6.47 for the year-ago period.
On the earnings call with investors, Johnson said the company posted the second largest Memorial Day sales in company history, and he believes special selling days in the second half of the year will be just as successful.
“Memorial Day was very good, better than President’s Day,” Johnson said on the call. “June was worse than May, but July is a little better than June. It’s tough to know how the summer will play out or what will happen in the fall when people get back to shopping.
“The holidays are important days for us, and we are getting better at it. With Labor Day, our customer day, Black Friday and Cyber Monday coming up, we will capitalize on all of these.”
Johnson said that due to the volatility of the past two years, when this year’s second quarter performance is compared to Q2 2019, the company shows gains in both market share and profitability. “In fact, Overstock has grown 44% compared with 2019,” he said on the investor call.
The company is increasing the breadth and depth of its assortment, according to Johnson, and has now completely exited all non-home categories as of the end of June.
“Now that we are 100% home, expect to see different branding campaigns rolling out that show that we are home,” Johnson said on the investor call. “They will be exciting and catchy, and consumers will understand them. The Overstock name recognition is very high, but the association with home needs to grow. This will change over the coming quarters with more focused branding.”
For the rest of 2022, the company is focused on growing its business in Canada to 10% of its U.S. revenue and is enhancing the customer experience in Canada with more locally sourced product.
“Our disciplined execution and differentiated asset-light operating model allowed us to remain profitable for the ninth consecutive quarter,” Johnson said. “(That’s) even with weak consumer sentiment, ongoing macroeconomic and geopolitical volatility, higher inflation, and significant competitive pressures.”
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