What happened
After Overstock.com (BYON -5.05%) published its quarterly results early Thursday morning, its share price took a more than 9% hit in the trading session that followed. The company's third-quarter figures revealed notable declines in several key metrics.
So what
For the period, Overstock booked total net revenue of $460 million, which was a steep 33% below its tally in the prior-year quarter. Equally notable was its drop in active customers to almost 5.8 million from more than 8.6 million in Q3 2021. Non-GAAP (adjusted) net profit also eroded, falling to just under $5.9 million ($0.13 per share) compared to over $23.3 million a year earlier.
To a certain extent, analysts had anticipated Overstock's business would be down. On average, they were estimating just over $479 million on the top line and $0.11 per share for adjusted net profit.
In its earnings release, Overstock pointed to shifting consumer spending preferences and macroeconomic challenges such as inflation as factors behind its weaker results.
Now what
Overstock management did not provide any financial guidance for future quarters, but it did sound a hopeful note about the near-term future, talking up a new national ad campaign launched earlier this month that it hopes will lure in customers.
"We are managing through near-term challenges while focusing on efforts that I expect will help drive long-term growth," CEO Jonathan Johnson said in the earnings press release.
