Following the recent return of Overstock’s founder as CEO, the e-commerce company reported revenue growth but a net loss in the second quarter.
For the second quarter ended June 30, Overstock.com posted a company net loss of $904,000, or four cents per diluted share, versus a net income of $1.7 million, or seven cents per diluted share, in the year-earlier quarter.
Total net revenue rose to $418.5 million in the quarter, with $24.6 million coming from direct and $393.9 million from partner sales. In the 2015 period, total revenue was $388 million, with $34.4 million coming from direct sales and $353.6 million from partner sales. Operating loss was $5.5 million versus an operating income of $2.1 million in the year-prior quarter.
The loss came after an approximately $10 million increase on operating costs including those related to staff, marketing and technology, the company reported.
The growth in revenue was primarily due to a 7% increase in orders, coupled with a 2% increase in average order size, the company said. Although average order size has increased, Overstock said it expects the rate of increase to lessen as a sales mix shift into home and garden products tapers. These increases were partially offset by increased promotional activities, including coupons, site sales, and Club O rewards due to driving a higher proportion of sales using such promotions.
Overstock founder Patrick Byrne recently returned from medical leave to resume his position as CEO.