Overstock Shares Jump After Strong Financials for 2021

Feb 23, 2022 By MarketDepth

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Stock Jumps

Overstock.com, Inc. (NASDAQ: OSTK) shares skyrocketed more than 30% after the popular online retailer reported financial results for the quarter and full year ended December 31, 2021.

Revenue Up

For the fourth quarter 2021, The Company reported total net revenue was $613 million, a decrease of 9% year over year. As for gross profit, Overstock reported $139 million or 22.7% of total net revenue. For the full year of 2021, total net revenue was recorded at $2.8 billion, an increase of 11% year over year and gross profit was $624 million or 22.6% of total net revenue.

“This is our second consecutive year of profitability and market share growth. For the full year 2021, net revenue increased 11% against record 2020 growth. The foundational operational improvements we have made over the past two years have stabilized the business and positioned us well to navigate through economic- and industry-specific cycles over the long term. We are proving we can adjust to, execute through, and take advantage of both positive and negative jolts in the market. It’s encouraging that nearly one third of the overall home furniture and furnishings market continues to be transacted online. I believe increasing our brand association with home positions us favorably for 2022 and beyond. We remain committed to our value to ‘do good’ and recently launched a dedicated site outlining our ESG efforts (http://www.overstock.com/esg).”

Overstock CEO Jonathan Johnson

Overstock also reported several operational highlights like – active customers were 8.1 million, a decrease of 12% year over year and that the last Twelve Months (LTM) net revenue per active customer was $341, an increase of 26% year over year. In addition, orders delivered were 3.0 million, a decrease of 25% year over year.

“Navigating the operating environment in our industry during the fourth quarter was challenging. Despite challenges, we were committed to delivering on our profitability targets—and we did just that, driven in part by our largest Thanksgiving through Cyber Monday—or Cyber Five—period in the company’s history. I look forward to providing additional updates on our fourth quarter and full year 2021 performance and sharing insights into our 2022 plans during our earnings call.”

Overstock CEO Jonathan Johnson