Shares of Overstock (BYON 2.24%) have jumped today, up by 5% as of 1:30 p.m. EDT, after the company reported first-quarter earnings. The e-commerce specialist also provided investors with some updates on how the COVID-19 pandemic is impacting the business.
Revenue in the first quarter declined 4% to $352 million, well above the $332.3 million in sales that Wall Street was looking for. That resulted in a net loss per share of $0.40, also better than the consensus estimate of $0.63 per share in red ink. The coronavirus has increased demand on e-commerce platforms as consumers stay home.
Newly acquired customers jumped 9% during the quarter, and mobile devices represented 46% of orders. Overstock also said that tZERO users increased 40% from the end of 2019. tZERO is the blockchain-based cryptocurrency app that Overstock launched last year.
"In a time of great uncertainty, Overstock is performing well," CEO Jonathan Johnson said in a statement. "Our retail business, which was already on track to achieve its first quarter plan before the COVID-19 crisis hit full bore, has benefited from an increased demand for home furnishings and other key product categories from customers looking to shop from the safety of their homes."
Overstock said that it has faced challenges in meeting the booming demand, in part due to "capacity issues from our shipping carriers." tZERO has not seen any interruptions but the company acknowledges that market turmoil could impact the platform. After the quarter closed, Overstock's retail sales in April have soared 120%.