by Quarterly net loss rises to $74 million, from $10.3 million last year
MIDVALE, Utah — Overstock, Bed Bath & Beyond and Zulily parent company Beyond Inc. reported net revenues of $382.3 million for its first quarter ended March 31, up slightly from the $381.1 million reported the same period last year.
The company reported a net loss of $74 million, or $1.62 per share, up from the $10.3 million, or 23 cents per share loss it reported the same period last year.
The company also reported a 27% increase in orders from last year, totaling 2.2 million, and a 26% increase in active customers to 6 million.
Gross profits totaled $74 million, or 19.4% of revenues, compared to $101.7 million, or 26.6% of revenues the same period last year.
The company’s first quarter operating loss was $57.5 million, compared to $8.4 million last year.
It also reported cash and cash equivalents of $256 million at the end of the first quarter.
“2024 has begun with a strong strategic focus on building a portfolio of profitable brands designed to drive high customer affinity and lifetime value,” said Marcus Lemonis, executive chairman of the board. “We are now 120 days into this new era for the company, building a foundation that will cause the next ten years to look materially different from the last ten, while deepening my conviction in our vision: to become the ‘AAA of Home’ — offering solutions for everything within the four walls of your home and extending to the four corners of your property. That foundation consists of three powerful brands: Bed Bath & Beyond, Overstock, and now Zulily, and we believe each of them has the potential to become a billion-dollar-plus revenue brand in its own right. That foundation requires us to have the right team, the proper brand positioning, and the most efficient process to profitably grow.”
“During the first quarter we delivered 2.2 million transactions through Bed Bath & Beyond alone, crossing the 6 million active customer level for the first time in a non-COVID environment, successfully soft launched Overstock six months ahead of schedule, and brought on Salesforce to launch a world-class CRM platform and manage our customer journeys and records,” he added. “We also acquired Zulily, a great strategic fit for our portfolio, and plan to relaunch the site later this year. Importantly, we’ve now clearly defined the brand identity and consumer value proposition for each brand, leaning into the white space of their historical core competencies and natural strengths.”
He added that the company has “assembled a world-class team and believe we now have the right players on the field, having hired talent and expertise in the areas of the business where needed, including legacy Bed Bath and Zulily talent. As importantly, we aligned management incentives around our financial objectives, something that historically has not been in place and gives me great confidence in our ability to achieve long-term, sustainable success. The entire team is committed to our path forward and I believe we now have all the pieces in place to win.”
Adrianne Lee, chief financial and administrative officer, said the company is pleased with the growth in active customers and transactions during the quarter. Lee said that the company is also halfway through a plan outlined last quarter to reduce expenses by $45 million on an annualized basis with a goal of eliminating unnecessary fixed costs and creating a more variable cost structure.
“We believe these actions, in combination with soft launching Overstock and soon Zulily, will yield sequential improvements in our margin profile, Lee added. “As we move through the balance of the year we will continue investing in our foundation and refining the processes that we believe will enable profitable growth for the long term.”
