Promotions for Black Friday deals started two months before the day after Thanksgiving, AdGooroo finds.
The web-only Top 500 retailer says average order size jumped 6% during the quarter. Overstock also announced today the launch of an online gift registry for weddings, births and other special occasions.
Overstock.com Inc. today reported a 13.4% year-over-year increase in revenue in the second quarter. Overstock is No. 31 in the Internet Retailer 2014 Top 500 Guide.
A nearly 6% increase in average order size during the quarter, to $177 from $167, partly explains the revenue increase, Overstock says. Orders also increased 9% year over year in Q2, the web-only discount merchant says.
For the second quarter ended June 30, Overstock reported:
• Revenue of $332.5 million, a 13.4% increase from $293.2 million in the same quarter a year ago. Of that Q2 2014 revenue, approximately 10% came from direct sales and 90% from fulfillment partners, Overstock says. That compares with about 12.4% for direct and 87.6% for fulfillment partners in the same quarter last year. (Direct sales are products sent from Overstock warehouses and fulfilled by others are items that are drop-shipped by the retailer's partners.)
• Net income of $1.9 million, down 48.6% from $3.7 million. Overstock did not immediately explain the factors behind the decrease.
• Gross margin of 18.8%, versus 19.7% a year ago.
• Sales and marketing expenses of $23.5 million, an increase of 22.4% from $19.2 million. The increase mainly came from more spending on search, display ads and e-mail marketing, Overstock says.
• Spending on technology of $21.4 million, up 19.6% from $17.9 million. The increase stems from “staff-related costs and depreciation.”
• General and administrative expenses of $15.9 million, down 4.2% from $16.6 million. The decrease primarily reflects lower legal costs, Overstock says.
For the first half of 2014, Overstock also reports:
• Revenue of nearly $673.8 million, a 11.3% increase from $605.2 million in the same period a year ago. Of the first half 2014 revenue, about 10.6% came from direct sales and 89.4% from fulfillment partners. That compares with with 12.9% for direct and 87.1% for fulfillment partners for the same period last year.
• Net income of $5.9 million, down 48.2% from $11.4 million.
• Sales and marketing expenses of $46.9 million, an increase of 23.7% from $37.9 million.
• Spending on technology of $41.0 million, up 13.6% from about $36.1 million.
• General and administrative expenses of $31.2 million, down 1.6% from $31.7 million.
In other Overstock news this week, the web-only retailer says it has launched an online gift registry for weddings, births and other special occasions. Shoppers using the registry can see product recommendations and share their purchases via wedding web sites, e-mails and social networks.
"Getting married or having a baby are times to celebrate, and with celebrations come gifts," says Overstock president Stormy Simon. "We want our customers to get exactly what they want. With Overstock's registries and wish lists, we will take care of the ever-important gift registry, so our customers can focus on enjoying the many memorable events ahead."