Overstock.com Inc. reported on April 27 that sales were down 29% in its fiscal first quarter ended March 31.

“We are encouraged by these results, particularly how we were able to improve results later in the quarter and look forward to the key spring summer selling season,” CEO Jonathan Johnson told investors in the earnings call.

Overstock ranks No. 50 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers.

The weak housing market is a challenge

Overstock transitioned from selling general merchandise to focusing exclusively on home goods and furniture in 2022. Previously, home goods made up about 80% of sales. 

Overstock’s revenue declined nearly 30% year over year due to pressures facing the entire home category, chief financial officer Adrienne Lee told investors. Lee cited “lower consumer engagement” and a weak housing market in the U.S. as reasons for the pressures.

Active customers are down

Overstock reported a decline in active customers to 4.8 million, down 35% year over year.

Lee said the decline was in part a reflection of Overstock’s move away from non-home goods. She also noted consumers are shifting spending to experiences and services over physical goods. UPS mentioned the same trend that tempered its first-quarter revenue.

To counter declining customer levels, Johnson says Overstock is focusing on loyalty. Consumers are spending less on home goods overall, so special finance offerings and exclusive in-app deals are necessary to bring in customers. 

The retailer also expanded its product assortment by about 20%, Johnson said, as another way to attract customers.

Bed Bath & Beyond’s bankruptcy is an opportunity

Home retailer Bed Bath & Beyond’s bankruptcy might have an upside for Overstock.

“We view it as an opportunity to capture market share,” Johnson said. Some Overstock suppliers who also worked with Bed Bath & Beyond already expressed interest in expanding distribution with Overstock, he added.

Experts predict Walmart and Target will see the majority of gain from Bed Bath & Beyond’s decline. Bank of America Corp. said in a report that Overstock and competitor Wayfair could see a modest boost in sales.

Overstock earnings

For the fiscal first quarter ended March 31, 2023, Overstock Inc. reported:

• Total net revenue declined 29% year over year to $381 million. 
• Net loss was $10 million.
• Total active customers were down 35% to 4.5 million.
• Delivered orders were down 29% to 1.7 million.
• Average order value was $220, a 1% decrease from the year-ago period.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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