Overstock reverses strategy in face of ‘nauseating’ losses
Pureplay Overstock.com is aiming to make up for significant losses in 2018 with a return to profits this year.
The company, which was one of the first major retailers to accept Bitcoin, has been placing big bets on blockchain technology. In its Q4 earnings report, CEO and Founder, Patrick Byrne, said: “Our blockchain projects are some of the most significant and cutting edge in the world, and we are just reaching the point where our products are being introduced to the public. In particular, tZERO brought live a security token trading platform.”
He added: “Our retail arm lost money last year because I gunned things in an attempt to create a conventional high-growth/money losing e-commerce business, but the losses were nauseating and we reverted back to the philosophy of profitability on which we built Overstock: as a result, in 2019 retail will return to profitability, generating a positive operating cash flow ≥ $10 million.”
Overstock reported Q4 revenue of $452.5 million, down from $456.3 million a year earlier. It racked up a loss of $42.3 million, compared with $95.7 million in Q4 2017.
