Overstock.com released its third-quarter financial results, revealing both positive and negative outcomes from the company’s transition into Bed Bath & Beyond.
The retailer, identified by the ticker symbol OSTK, reported an adjusted loss of 61 cents per share, surpassing the consensus forecast of an 83-cent loss. However, on an unadjusted basis, Overstock experienced a loss of $1.39 per share, wider than the projected loss of $1.04.
Net revenue saw a decline of 19% year over year, reaching $373 million, falling short of analysts’ projections for $396.1 million.
This decrease in revenue can be attributed to the ongoing rebranding effort Overstock has undertaken since acquiring the Bed Bath & Beyond brand out of bankruptcy in June. The company has been conducting business under the Bed Bath & Beyond name since July in Canada and since August 1 in the U.S.
As part of this rebranding effort, Overstock announced plans to change its corporate name to Beyond Inc. effective November 6. They will also switch their ticker symbol from “OSTK” to “BYON”.
CEO Jonathan Johnson stated, “We are in the early stages of capitalizing on our recent acquisition,” highlighting the company’s commitment to the successful integration of the Bed Bath & Beyond brand. He further disclosed that Overstock invested $25 million in acquiring the brand and anticipates spending an additional $150 million on rebranding initiatives, reigniting consumer interest, and expanding into new product categories.
Since introducing the Bed Bath & Beyond brand in the U.S., Overstock has gained new customers and reengaged with past Bed Bath customers. However, the company reported a 15% decrease in active customers compared to the previous year. Additionally, net revenue per customer and the average value of each order also experienced declines.
While the results were mixed, shares of Overstock saw a modest increase of 0.7% to $15.40 in premarket trading on Thursday.
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