Overstock.com (OSTK) slips 9% after providing Bed Bath & Beyond update

Overstock.com (NASDAQ: OSTK) shares fell 9% in premarket Wednesday trading following an update on the performance of Bed Bath & Beyond, for which it acquired intellectual property.

The update indicates that revenue for Bed Bath & Beyond has experienced a low-double-digit percentage decline year-over-year since July 1.

Here are some key highlights from the update:

• Active customers in the last 12 months numbered over 4.8 million as of September 4;
• There has been a mid-single-digit percentage net increase in customers since the U.S. launch;
• Orders have seen mid-single-digit percentage growth year-over-year, including high-teens percentage growth since the US launch;
• Revenue has suffered a mid-teens percentage decline year-over-year, including a low-double-digit percentage decline since the US launch;
• Average order value has declined by a high-teens percentage year-over-year, including a low-20s percentage decline since the US launch;
• Gross profit as a percentage of revenue is approximately 18%;
• Sales & Marketing expenses as a percentage of revenue stand at around 15%.

“Our U.S. business launched successfully on August 1. Consumers are showing that they love the new Bed Bath & Beyond,” said Jonathan Johnson, CEO of the new Bed Bath & Beyond.

“Even in a challenging macro-economic environment, we acquired new customers and re-activated past customers. Our topline performance is improving steadily. We have experienced year-over-year order growth since the U.S. launch, led by orders from new customers.”

By Senad Karaahmetovic

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