Overstock.com Inc Stock Falls Despite Revenue Growth as Loss Widened

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Overstock.com Inc (NASDAQ:OTSK) reported mixed quarterly results that saw its revenue increase year-over-year but the company’s stock still fell after hours as earnings fell.

Overstock.com IncThe e-commerce retailer announced that its first quarter of fiscal 2018 brought in a pre-tax loss of $54.7 million, which was considerably wider than its year-ago pre-tax loss of $6.6 million. The company’s Overstock retail brought in a pre-tax loss of $33.6 million, while Medici’s pre-tax loss was $21.2 million.

Overstock’s net loss for the period was $50.9 million, more than nine times as wide as its year-ago net loss of $5.9 million. The company’s revenue did experience growth as it reached $445.3 million, a 3% increase from the $432.4 million it raked in the year-ago quarter.

The retailer’s gross profit was up to $93.9 million, an 8% gain from the $86.9 million from the year-ago period. Overstock added that its gross margin came in at 21.1% by the end of the quarter, a 98 basis point increase from the year-ago gross margin of 20.1%.

Its sales and marketing expense tallied up to $77.2 million, a 105% surge from the $37.6 million in the year-ago period. The company’s non-GAAP contribution was $16.7 million, compared to the year-ago contribution of $50 million, a 67% decrease.

Overstock’s G&A and Technology expense was up to $71 million, 38% higher than the $51.6 million from the year-ago quarter. All in all, the company’s diluted net loss per share was $1.74, compared to its loss of 23 cents per share during the year-ago quarter.

OSTK shares fell roughly 2.5% after the bell Tuesday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/overstock-com-inc-ostk-3/.

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