Overstock follows record 2020 with strong Q1 2021 numbers
US online retailer Overstock has announced its Q1 2021 earnings, with total net revenue hitting $660 million, an increase of 94% year-over-year.
Gross profit was $154 million or 23.3% of total net revenue, an increase of 141 basis points YoY.
Active customers reached 9.9 million as of 31st March 31, 2021, up 92% YoY.
"On the heels of a record 2020, Overstock continues to execute consistently and delivered strong results for the first quarter of 2021," says Overstock CEO Jonathan Johnson.
"Our strong momentum reflects our purposeful and strategic focus on our home business and the operational changes we've made and continue to put in place.”
He concludes: “We believe Overstock is well positioned to sustain this profitable path through 2021 and beyond.”
Patrick Byrne
What a difference a year makes.
Twelve months ago, Overstock was facing a lawsuit from investor John Murphy after former CEO Patrick Byrne abruptly departed the company and cashed out on $90 million in stock.
Murphy also contended that Byrne’s “evident psychological instability” had harmed Overstock’s reputation.
And “his misconduct not only triggered an investigation by, among others, the US Securities and Exchange Commission, it contributed to the destruction of hundreds of millions of dollars of the company’s value.”
Dissing Wayfair
Following his departure, Byrne published a public letter to his former Overstock colleagues in which he commented: “I have been following the US economy and the deteriorating world situation, and I am growing worried, as I am sure you have as well.”
“The good news is that a collapse of Wall Street would crush your main competitor, Wayfair.”
“So far their business model has been predicated on losing ≈ $3 billion without a remotely break even quarter, while replenishing continually thanks to their Wall Street promoters (e.g., Goldman), but in a recession that game will end.”
He added: “An economic downturn would hurt Overstock as well, but your firm has repeatedly shown the ability to roll with whatever punches get thrown, while Wayfair’s expense structure is so lopsided (with expenses that run 2X their “nectar$”), they will not be able to adjust such an event.”
Byrne’s resignation closely followed the announcement of disappointing Q2 2019 financial results.
He said it was impossible to continue due to distraction and fallout related to his involvement in a Federal Bureau of Investigation Russian espionage probe. Further details on that here.
Sign up for our free retail technology newsletter here.
-
Southeastern Grocers, parent company of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores, is deployi… https://t.co/Q5En8j6cEc -
Check out the week's coolest retail technology plays, including @obsessVR @OcadoGroup @AEON_JAPAN @braincorp… https://t.co/RH2BIf6Jol
-
RTIH presents the retail technology week in numbers, including @CovariantAI @RetailTechShow @DennysDiner… https://t.co/WURUUgdCr0
