Overstock.com Inc. (NASDAQ:OSTK) swung to a surprise 4Q loss as consumer demand for furniture slipped, hitting the online retailer on its bottom line.
The e-commerce firm reported a net loss of $15.5 million or $0.34 per share during the three-month period to end December 2022, down from earnings of $32.9 million in the comparable 2021 quarter.
Revenue came in well below estimates, with Overstock reporting $404.9 million compared to consensus estimates of $448 million.
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Overstock’s 4Q revenue declined by more than a third compared to the same year-ago quarter.
CEO Jonathan Johnson told shareholders in a statement accompanying the numbers that shifting consumer demand and a highly promotional competitive environment had affected the firm’s bottom line.
“Revenue declined 30% for the year, driven by the weak macroeconomic backdrop that impacted consumer sentiment and our strategic actions to become a prominent home-only online retailer,” Johnson said in a statement.
This year will be the company’s first year as a 100% online home retailer, Johnson noted.
The CEO promised shareholders that Overstock will “focus (its) efforts on improving topline performance. While the economic environment remains uncertain, our asset-light business model and strong balance sheet position us well for success – both in the short- and long-term.”
Shares of Overstock dropped more than 7% pre-market before a slight rally in morning trading lifted the stock to around $20.80 on Wednesday.
Contact Angela at angela@proactiveinvestors.com
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