Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
The web-only mass merchant reports increases in both average order value and total orders.
Overstock.com Inc. today reported a nearly 9.4% year-over-year increase in revenue in the first quarter ended March 31, to $341.2 million from $312.0 million in the same period a year ago. Overstock is No. 31 in the brand new Internet Retailer 2014 Top 500 Guide.
A 7.8% increase in average order size during the quarter, to $165 from $153, partly explains the revenue increase, Overstock says. Orders also increased 5% year over year in Q1, the web-only mass merchant says.
For the first quarter, Overstock reported:
• Revenue of $341.2 million, a 9.4% increase from $312.0 million in the same quarter a year ago;
• Net income of $4.0 million, down 48% from $7.7 million. Overstock did not immediately explain the factors behind the decrease.
• Gross margin of 18.8%, versus 18.9% a year ago;
• Sales and marketing expenses of $23.4 million, an increase of 25.1% from $18.7 million. The spending increase mainly came from devoting more money to search marketing and to sales and marketing staff, the e-retailer says.
• Spending on technology of $19.6 million, up about 7.7% from $18.2 million. The increase stems from staff and “external contractor” costs, Overstock says.
• General and administrative expenses of $15.3 million, an increase of 1.3% from $15.1 million.
In other news today, Overstock says it promoted Seth Marks to senior vice president of merchandising and strategic sourcing. Hired by Overstock in 2013, Marks had worked as the e-retailer’s vice president of sales and special acquisitions. In 2004, Marks co-founded Big Lots Capital, an arm of discount and closeout retail chain Big Lots Inc., Overstock says. “Seth has a unique view and important connections in the extreme value retail arena and particularly in the area of closeouts and liquidation acquisitions,” says Overstock.com president Stormy Simon.