Geeknet terminates a purchase agreement with Hot Topic and accepts a $20 per share bid by GameStop.
But Overstock.com improved its bottom line in the second quarter. While revenue declined 6.7%, Overstock posted Q2 net income of $389,000 vs. a net loss of $7.4 million in the prior year.
Sales dropped for discount mass merchandiser Overstock.com in the second quarter, but the company continues to improve its bottom line.
For the second quarter ended June 30, sales for Overstock, No. 29 in the Internet Retailer Top 500 Guide, declined 6.7% to $176.1 million from $188.8 million in the second quarter of 2008.
The online retailer also posted net income of $389,000 vs. a net loss of $7.4 million in the prior year. “We generated positive net income and $4 million in adjusted earnings before EBITDA,” says Overstock CEO Patrick Bryne. “Over the trailing twelve months we have generated over $10 million in positive cash flow.” EBITDA stands for earnings before interest, taxes, depreciation and amortization and is a standard measure of a company’s operating income. In the second quarter, Overstock spent $11.1 million, or 6% of total sales, on marketing and $12.6 million – 7% of total sales – on technology.
For the first two quarters, Overstock sales declined 7.2% to $363.5 million from $391.7 million for the same period in 2008. Overstock in the first six months of the year reported a net loss of $1.7 million compared with a net loss of $12 million in the prior year. Spending on marketing in the first two quarters amounted to 6.8% of total sales, or $24.6 million, while technology expenses totaled $26.4 million or 7.3% of total sales.