US furniture giant Overstock's revenue fell in the first quarter! Furniture demand is expected to grow

It is learned that on May 2, American furniture giant Overstock announced its first-quarter financial results. Data showed that revenue fell 19% year-on-year, but the purchase amount per customer increased by 25%, and the average order value reached US$221, a year-on-year increase of 21%.

Overstock CEO said the decline is expected to continue into the second quarter as the retailer removes non-home items such as jewelry and watches from its products. In addition, soaring gas prices, inflation and the war in Ukraine continue to affect sales revenue.

For the three months ended March 31, Overstock.com Inc. reported:

Total net revenue was $536.04 million, down 19% year-over-year from $659.86 in 2021;

Net income was $10.12 million, down 45% from $16.09 million in the same period last year;

Operating income was $12.45 million, down 72% from $26.59 million in the same period last year;

Overstock is not surprised by the flattening of growth as consumers shift spending from home to other expenses such as travel. Johnson, its CEO, said the housing market remains strong and demand for furniture is expected to follow.

For the three months ended March 31, Overstock.com reported 7.4 million active customers, down 26% year-over-year. It delivered 2.4 million orders, down 33% year-over-year. Active customers are the number of people who have placed at least one order with a company in the past 12 months.

However, purchases per customer grew 25%, with average order value rising to $221, up 21% year-over-year.

Additionally, more customers are using their mobile devices to shop, accounting for 50% of gross merchandise sales. Mobile purchases increased 54% in the first quarter of 2022 compared to the fourth quarter of 2021. Mobile purchases increased 80% in the fourth quarter of 2021 compared to the third quarter of 2021.

Looking ahead to 2022, Johnson said: "We are maintaining and taking market share. What I am really confident about is that if the market goes into a depression, we will shrink less than the market and will take market share."

Overstock expects to exit the non-home category entirely after Mother’s and Father’s Day, and Johnson said the shift away from non-home products will provide an opportunity to work with new vendors to sell their products on Overstock.

Editor✎ Ashley/

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