eCommerce retailer and technology company Overstock.com Inc.’s stock price surged almost 25% in early trading Wednesday (Feb. 23) after the company reported the results of its fiscal 2021 fourth quarter and full year.
Overstock celebrated its most successful Cyber Five — Thanksgiving through Cyber Monday — period in the company’s history, which helped them deliver on their profitability targets for the quarter. Investors were also excited about Intercontinental Exchange’s strategic investment in tZero, the blockchain-based trading platform for cryptocurrencies and digital assets in which Overstock owns a majority stake.
The stock resurgence comes about three months after Overstock saw its share price dip about 65% in November.
The company’s total net revenue was $613 million for Q4, ending Dec. 31, a 9% drop compared to the same three-month period in 2020. Meanwhile, gross profit was $139 million, reflecting 22.7% of total net revenue, while income from continuing operations was $33 million.
Total net revenue for the year was $2.8 billion, an increase of 11% year-over-year, while gross profit for the year was $624 million, good for 22.6% of total net revenue. Income from continuing operations was $172 million.
“This is our second consecutive year of profitability and market share growth,” said Overstock CEO Jonathan Johnson in the company announcement. “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,” he said.
Johnson was particularly encouraged by the fact that about one-third of the overall home furniture and furnishings market is being done online.
“I believe increasing our brand association with home positions us favorably for 2022 and beyond,” he said. “We remain committed to our value to ‘do good’ and recently launched a dedicated site outlining our ESG efforts.”
“Navigating the operating environment in our industry during the fourth quarter was challenging,” Johnson added.
Overstock’s active customers dropped 12% year-over-year to 8.1 million in the quarter, while the number of orders delivered dropped 25% to 3 million for the same period, but average order value jumped 23% to $206.
Related: Overstock’s Net Revenue Soars With Rise In Average Order Value
In April, Overstock reported 3.6 million orders delivered in the first quarter of 2021, marking a 66% year-over-year rise at the time. It also noted a $183 average order value for the first quarter of 2021, marking a 17% year-over-year rise last year.
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