Overstock, an American home furnishing e-commerce company, released its Q2 financial report, and the overall market downturn led to a decline in revenue

It is learned that on July 27, Overstock, an American home furnishing e-commerce company, released its second quarter 2023 financial report. The report shows that due to the sluggish overall market demand, Overstock's revenue and other indicators have declined. At the same time, due to the acquisition of BedBath&Beyond brand assets, Overstock's revenue decline has been reduced.

Overstock reported a 20% year-over-year revenue decline to $422 million in the second quarter ending June 30, 2023, attributing the decline to overall sluggish demand for home furnishings. In fact, this decline was smaller than Overstock's 29% decline in the first quarter, indicating better growth prospects.

Other data show that Overstock's gross profit was $94 million, $27 million less than the same period last year. In the coming months, Overstock plans to launch more discounts and increase investment in marketing to attract BedBath&Beyond users. Therefore, profits in the next few quarters may decline further.

Additionally, Overstock reported that its active users were ordering less frequently and spending less on average.

In the second quarter, Overstock's number of active customers fell 29% from last year to 4.6 million; the number of orders per active customer fell slightly, down 5% to 1.56; the average order value also fell 5% to $234. Although AOV fell year-on-year, it still increased by $220 from the AOV in the first quarter.

Overstock CEO Jonathan Johnson said consumers are shifting their spending toward experiences rather than goods, and consumers continue to buy cheaper items at low prices.

For Overstock, its acquisition of the BedBath&Beyond brand for $21.5 million in June this year and its move to change the brand and website name to BedBath&Beyond will mark the beginning of a new growth phase. Overstock will launch its new BedBath&Beyond website in the United States in August.

Overstock has always been a name that has caused a lot of trouble for it. Many consumers mistakenly believe that it is a clearance platform that specializes in selling discounted goods, a definition that is clearly inconsistent with its business model. BedBath&Beyond has established a good brand image, but it eventually went bankrupt due to its poor business model.

Therefore, the merger of the two brands is a win-win situation. Before BedBath & Beyond went bankrupt, its share of the US e-commerce market was comparable to Overstock's. Among DigitalCommerce360 Top 1000 retailers, Overstock ranked 50th and BedBath & Beyond ranked 47th.

Jonathan Johnson revealed that Overstock is planning to invest "more than the usual promotion and marketing budget" in the next few quarters to attract Bed Bath & Beyond customers. At present, the situation in the entire US home furnishings market is relatively severe, especially for e-commerce sales.

Editor✎ Ashley/

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