Overstock.com pursued more robust marketing initiatives in the third quarter ended September 30 and, partially because of those efforts, posted a net loss of $47.9 million, or $1.55 per diluted share, versus $786,000, or three cents per diluted share, in the year-earlier period.
Total net revenue was $440.6 million as compared to $424 million, in the year-prior quarter. Operating loss increased to $47.8 million from $11.9 million, in the year-before period.
Overstock noted that increased marketing expenses played a key roll in driving sales as the company aggressively pursued revenue growth and new customer acquisition early in the quarter.
However, the company added that it shifted retail marketing strategy in early August as it sought to curtail losses, which pressured revenue growth. Overstock had a 6% increase in average order size, excluding promotional activities, in the quarter primarily due to a continued sales mix shift into home and garden products, the company reported. Still, the company added, increased promotional activity partially offset the increases.