The Top 500 retailer buys Campus Deals, which offers mobile coupons to college students.
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.