Overstock's full-year revenue fell short of expectations, and its stock price plummeted 54%!

It is learned that on February 22, the US e-commerce platform Overstock released its fourth-quarter results and last year's financial report as of December 31, 2022. As the weak economy affected consumer purchasing confidence, the company's revenue and profits both declined this quarter.

The financial report shows that in the fourth quarter, Overstock's revenue was US$405 million, lower than analysts' expectations of US$449 million; gross profit was US$90 million, lower than US$138.8 million in the same period last year; adjusted loss per share was 4 cents, while analysts had previously expected earnings of 2 cents per share.

Overstock CEO Jonathan Johnson said in the earnings report: "The company continued to show positive adjusted EBITDA in the fourth quarter and full year in response to changing consumer demand and fierce competition. However, revenue this year fell 30% due to the impact of reduced consumer demand and operating expenses caused by the weak economy."

It is learned that Overstock's total net income in 2022 was US$1.9 billion, a year-on-year decrease of 30%; gross profit was US$443 million, accounting for 23% of net income. The full-year diluted loss per share was 83 cents, while the full-year earnings per share in 2021 were US$3.57.

"2022 has been a transformative year for Overstock," Johnson said. "We completed the process of removing all non-home merchandise from the site, and we increased our home-related product assortment by more than 50%. We now have more than twice as many home products as we did two years ago. We also increased adoption of our mobile app and connected better with our users."

While the company did not provide specific performance guidance for the coming quarters, Johnson said Overstock will be profitable in 2023.

"We expect two distinct trends to emerge in 2023. On one hand, the weak real estate market will continue to weigh on the company's business performance; on the other hand, commodity prices will normalize as macro drivers will improve by the end of the year," he said.

Overstock's shares fell 1.3% on Wednesday. The stock has fallen about 54% in the past 12 months.

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