August 6, 2010, 2:57 PM

Overstock sales grow in Q2, but profits fall

Overstock.com Inc. posted a healthy 32.3% increase in web sales in the second quarter.

Mark Brohan

Research Director

Lead Photo

Mass merchandiser Overstock.com Inc. posted healthy web sales in the second quarter, but offset strong growth in revenue with a net loss.

For the quarter ended June 30, Overstock, No. 28 in the Internet Retailer Top 500 Guide, reported: 

  • Sales increased 32.3% to $231.3 million from $174.9 million in the second quarter of 2009.
  • Sales and marketing spending rose year over year 26.8% to $14.2 million from $11.2 million.
  • Technology expenses grew 11.8% to $14.2 million from $12.7 million in the second quarter of 2009.
  • General and administrative expenses grew year over year 17.9% to $14.5 million from $12.3 million.
  • Net loss was $1.4 million compared with net income of $319,000 in the prior year.

For the first two quarters, Overstock also reported:

  • Sales increased 37.4% to $495.6 million from $360.6 million in the first two quarters of 2009.
  • Sales and marketing spending rose year over year 15.4% to $28.5 million from $24.7 million.
  • Technology expenses grew 6.8% to $28.1 million from $26.3 million in the first two quarters of 2009.
  • General and administrative expenses grew year over year 12.6% to $29.4 million from $26.1 million.
  • Net income was $2.38 million compared with a net loss of $3.6 million in the prior year.

In the second quarter Overstock bought the domain name O.co from .co Internet S.A.S., the registry operator for the .co domain. The e-retailer also added new benefits, such as a cash back incentive and promotions, to its Club O loyalty program.

 

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