What happened
Shares of Overstock (OSTK +2.86%) have jumped today, up by 17% as of 2:45 p.m. EDT, after the company said sales had skyrocketed as COVID-19 drives consumers to e-commerce. The online retail specialist hosted its annual meeting today.
So what
At the meeting, CEO Jonathan Johnson provided investors with an update about the business's performance during the novel coronavirus outbreak. In the presentation, the executive said that quarter-to-date retail sales were up 130% year over year. The company has shifted to a new model where 100% of employees are now working from home, and Overstock has also enjoyed new retail customer growth of 85% year to date. New customers are up 260% quarter to date.
Image source: Getty Images.
The home furnishings product category is doing particularly well, seeing broader online penetration of 42% compared to 23% before the shutdowns began. Meanwhile, the overall retail industry has seen a decline of approximately 30% in the wake of the public health crisis, according to Overstock.
Now what
Overstock said that it would focus on several key initiatives in 2020, including improving the mobile site, reducing logistics costs, and improving inventory management for faster delivery. In the near term, Overstock outlined several key challenges to overcome, such as customer service channels being overwhelmed and enforcing social-distancing guidelines at warehouses.
The company is preparing to distribute a digital preferred stock dividend on May 19, which will trade exclusively on Overstock's tZERO cryptocurrency trading platform. Shareholders will receive one security token for every 10 Overstock shares held as of April 27.
