Despite an 8.6% increase in revenues, Overstock.com posts a Q1 loss

Overstock.com Inc. posted total revenue of $180.2 million in the first quarter, up 8.6% from $165.9 million a year earlier, the company reported today. But the company, No. 19 in the Internet Retailer Top 400 Guide to Retail Web Sites, had a first quarter net loss of $15.9 million, compared with a $4.4 million loss in 2005’s first quarter.

In a letter to investors, Overstock CEO Patrick Byrne said he expects the losses to carry over into the second quarter. He attributed the loss to lower margins stemming from systems problems that plagued the company in the last part of 2005.

“Our theme for this year is to slow growth during the first half of the year so we can work on improving internal business processes in preparation for stronger performance in Q4 and beyond,” Byrne wrote. “We continue to anticipate things will look better in Q3, and to be out of the ditch by Q4.”

Jacob Hawkins, vice president of online marketing at Overstock, is speaking at the Internet Retailer Conference & Exhibition, June 5-7 in Chicago in a session titled Making Sense of Online Shopping Malls.