Given the lackluster post-Thanksgiving results reported by Wal-Mart
If some of the nation's malls and strip centers were a little less crowded, it could be the missing shoppers were lining up behind online cash registers at companies like Overstock.com
The closeout retailer did not divulge overall year-over-year comparisons, but did release a few exciting tidbits that prompted investors to bid the shares several dollars higher in morning trading. Sales of apparel and jewelry, for example, were cited as particularly brisk -- a trend that bodes well for online jewelry specialist Blue Nile
The company also noted that its online auction division -- launched last quarter to siphon away some of eBay's
Overstock.com's weekend results are encouraging, particularly considering that most online retailers don't experience a surge in traffic until the Monday following Thanksgiving. Last year, consumers spent more than $300 million in online sales on that day, which has no-so-creatively been dubbed Black Monday.
To date, seasonal online spending has jumped 23% to $5.7 billion, and total holiday sales are expected to rise 25% to top the $15 billion mark. With a new advertising campaign promoting increased brand awareness, and continued consumer preference for discounted merchandise, Overstock.com is well-positioned to capture a healthy percentage of those revenues. Still, with the stock having skyrocketed since this summer to a new 52-week high, that bright outlook has already been factored in. Investors may need to shop carefully before overspending on Overstock.com.
Both Overstock.com and Blue Nile are Motley Fool Rule Breakers selections. You can take a free, no-obligation trial today to our newest newsletter to learn more.
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Fool contributor Nathan Slaughter owns none of the companies mentioned.