Even with a new lease on life from new owners that bill themselves as brand-building specialists, Linens ‘N Things online still faces a tough ...
The top line grows for Overstock in Q3, but not the bottom line
The retailer’s net loss widened to $3.4 million.
Sales grew nearly 27% in the third quarter for Overstock.com, but the retailer’s net loss widened.
For the third quarter ended Sept. 30, Overstock, No 28 in the Internet Retailer Top 500 Guide, reported:
• Sales increased 26.7% to $245.4 million from $193.7 million in the third quarter of 2009.
• Sales and marketing spending rose year over year 27.9% to $15.6 million from $12.2 million.
• Technology expenses grew 13.6% to $14.2 million from $12.5 million in the third quarter of 2009.
• General and administrative expenses grew year over year 10.5% to $14.7 million from $13.3 million.
• Net loss was $3.4 million compared with a loss of $1.4 million in the prior year.
For the first three quarters of the year, Overstock also reported:
• Sales increased 33% to $741 million from $554.4 million in the first three quarters of 2009.
• Sales and marketing spending rose year over year 19% to $44.1 million from $37 million.
• Technology expenses grew 9% to $42.3 million from $38.8 million in the first three quarters of 2009.
• General and administrative expenses grew year over year 12.2% to $44.2 million from $39.4 million.
• Net loss was $970,000 compared with a net loss of $4.9 million in the prior year.
In the third quarter Overstock launched Eziba.com, a private-sale site that offers limited quantities of home goods that are available for a set time period, typically between 48 and 72 hours. Eziba is Overstock’s first private-sale site. But based on its success, the retailer says it may branch out into other product categories that take advantage of Overstock’s existing buyer relationships.