SALT LAKE CITY – Shares of e-commerce retailer Overstock.com are up nearly 23% in trading today after the company announced that revenue came in at $785 million for the second quarter ending June 30, 2020, representing a 109% increase year-over-year.
“Second quarter gross sales in our Overstock Retail business more than doubled,” said Jonathan Johnson, Overstock CEO. “The number of new customers more than tripled year-over-year. Importantly, our customers are buying our core products — home furnishings — from the safety of their homes as part of the country’s new normal. If business continues as I expect, our Overstock Retail business will achieve sustainable, profitable growth this year.”
Johnson said the Overstock retail team is executing its disciplined strategy and expects to see continued progress.
The company’s gross profit was $180 million or 23% of total net revenue, an improvement of 321 basis points over last year’s period. And, net income attributable to stockholders of Overstock.com was $36 million, an improvement of $61 million over last year. Diluted earnings per share were 84 cents, an improvement of $1.53 over Q2 2019.
Other highlights of the second quarter include that newly acquired retail customers increased 205% year-over-year and gross sales from orders placed on a mobile device were 50.8% of retail gross sales in the second quarter of 2020, compared with 43.9% in the second quarter of 2019.
“Mobile now accounts for more than half of all purchases on Overstock.com, and mobile sales are up 148% in the second quarter,” Johnson said on the quarterly earnings call. “We are now also offering free shipping on everything as a result of COVID-19 to continue the low hassle shopping experience we offer to customers.”
The company also announced that it has won a General Services Administration contract from the U.S. government as one of three preferred platforms for the commercial purchases of office products and furnishings of less than $10,000 for five government agencies. The project is scheduled to go live in early August.
“We are currently in conversations with new suppliers, many in the commercial goods side,” said Dave Nielsen, Overstock retail president, on the conference call. “Many of our current partners already deal with the GSA and we are confident that we will have a solid assortment. The total addressable market of $6 billion for this initiative is only in the categories that we specialize in.”