Overstock noted that it saw significant sales gains in April as the COVID-19 pandemic struck retail, and the company also managed to cut its loss in a first quarter that ended March 31.
The company posted a net loss of $16.3 million, or 40 cents per diluted share, in the first quarter versus a loss of $39.2 million, or $1.18 per share, in the year-before period. Overstock beat a MarketBeat-published analyst consensus estimate of a 62 cents per share loss.
Net revenue was $351.6 million and retail revenue was $339.6 million versus net revenue of $367.7 million and retail revenue of $362.6 million in the year-prior quarter. Operating loss was $26.1 million versus an operating loss of $36 million in the period a year earlier.
Overstock CEO Jonathan Johnson asserted that the retail business performed well against expectations in the first quarter. Results were on track to achieve its first quarter plan before the COVID-19 outbreak fully broke on the retail marketplace, he noted. As it did, Overstock benefited from increased demand for home furnishings and certain other product categories from customers shopping from the safety of their homes.
“The Overstock retail team is executing its disciplined strategy,” he said. “I expect to see continued progress against our goal of realizing sustainable, profitable growth. Many of our Medici Ventures blockchain companies are also progressing toward having usable products in production.”
In the coronavirus crisis, Overstock’s April retail sales jumped more than 120% year over year with home furnishings leading, Johnson said, but, at the same time, the circumstances also threw a spotlight on the company’s blockchain operation.
“Several of our blockchain companies have received public attention because the problems they are solving using blockchain technology have been brought into the spotlight in the current pandemic,” Johnson said. “Areas like mobile voting, digital identity, digital currency and supply chain tracking have become more important in our COVID-19 world.”