by Quarterly revenues of $384 million and full-year revenues of $1.6 billion were down 5% and 19% respectively
MIDVALE, Utah — Overstock and Bed Bath & Beyond owner Beyond Inc. reported total fourth-quarter net revenues of $384 million and full-year revenues of $1.6 billion for the period ended Dec. 31.
The quarterly revenues were 5% below the $404.9 million reported in the fourth quarter of 2022, and full-year revenues were 19% below revenues of $1.9 billion in 2022.
The company also reported a net loss of $161 million, or $3.55 per share, for the quarter compared to a net loss of $15.5 million, or 34 cents per share, the same period in 2022. For the full year, it reported a net loss of $307.8 million, or $6.81 per share, compared to a net loss of $35.2 million, or 83 cents per share, in 2022.
Gross profits for the quarter were $60 million, or 15.6% of net revenues, and for the full year were $314 million, or 20.1% of net revenues.
The company reported an operating loss of $64.6 million for the quarter, compared to $2.6 million in 2022 and for the full year reported an operating loss of $118.1 million compared to a gain of $27 million in 2022.
“As a team, we are dissatisfied with the Q4 results and have taken steps to grow revenue, improve margins and reduce our fixed costs,” said Adrianne Lee, chief financial and administrative officer. “In December, we announced $25 million of annualized cost reductions. Since that time, we have increased our target to $45 million of annualized expense reduction, freeing up capital to exclusively invest in growth.”
Other executives also said the company is taking steps to reinvigorate the brand through new growth opportunities.
“Planned investments to support the Bed Bath & Beyond brand launch and reignite our customer file are delivering results,” said Dave Nielsen, chief executive officer of Overstock. “We have accelerated customer acquisition during the quarter, driving a vast improvement in our revenue performance. While we spent the back half of the year launching Bed Bath & Beyond, we’ve simultaneously laid the groundwork to reignite Overstock by the end of the first quarter. We believe the combination of these two anchor brands will contribute to achieving our revenue goals.”
“I joined the company because I’m passionate about Bed Bath & Beyond and am driven to reestablish its category dominance,” said Chandra Holt, chief executive officer of Bed Bath & Beyond and its related brands. “We have significant opportunities ahead of us with our robust portfolio of brands. It is my goal to have Bed Bath & Beyond be a leader in unified commerce, win on home-related assortments, and provide unprecedented value for our customers. I look forward to leading the charge in positioning the business for growth and interacting with the investment community.”
Marcus Lemonis, executive chairman of the board, noted that over the past 75 days, the company has made “substantial progress laying the foundation for a high-growth, differentiated business model with high customer affinity,” as the company has had year-over-year growth in customers for the first time in three years with the addition of more than 700,000 customers. Active customers totaled 5.6 million, up 9% year over year.
“Our mandate is to grow our customer file, provide a service level that improves retention and minimizes customer returns,” he said. “We believe that mandate will result in improved margins and profitability through Beyond.com and our core business. Additionally, as we review our assets and investments, we continue to be optimistic about the value of a few of those investments. As part of that review, we are assessing options related to the portfolio to ensure maximum return for our shareholders. It is our goal to achieve $2 billion of revenue in 2024, and a $3 billion revenue run rate by the end of 2025. This projected revenue improvement, coupled with improved margins and a reduced expense structure provides a clear path to profitability.”
