SALT LAKE CITY, Sept. 06, 2023 (GLOBE NEWSWIRE) -- Bed Bath & Beyond, operated by Overstock.com, Inc. (NASDAQ:OSTK), today shared an update on its 3Q 2023 performance.
“Our U.S. business launched successfully on August 1. Consumers are showing that they love the new Bed Bath & Beyond,” said Jonathan Johnson, CEO of the new Bed Bath & Beyond. “Even in a challenging macro-economic environment, we acquired new customers and re-activated past customers. Our topline performance is improving steadily. We have experienced year-over-year order growth since the U.S. launch, led by orders from new customers. Over the Labor Day weekend, the first major holiday event under our new brand, we were successful in attracting customers to the bedding, bath, and kitchen categories, which recorded strong growth year-over-year in aggregate, for the comparable period. I thank the entire team for its dedication and focus over the last few months as we prepared to revive an iconic consumer brand in the U.S. and Canada. I remain optimistic about our future and the opportunity to gain market share under the Bed Bath & Beyond brand.”
Third Quarter 2023 Performance Update
The company completed the acquisition of the Bed Bath & Beyond brand and other intellectual property on June 28, 2023. The company launched as bedbathandbeyond.ca in Canada on June 29, 2023 and as bedbathandbeyond.com in the U.S. on August 1, 2023. Results prior to these launch dates reflect the performance of our prior overstock.ca and overstock.com websites. The new Bed Bath & Beyond is providing the following estimated revenue and expense metrics for the period beginning July 1 through September 4, 2023 (3Q 2023 to date).
Active customers (last twelve months): Over 4.8 million as of September 4, 2023. Mid-single-digit percent net increase in customers since the U.S. launch.
Orders: Mid-single-digit percent growth year-over-year. Includes high-teens percent growth year-over-year since the U.S. launch.
Revenue: Mid-teens percent decline year-over-year. Includes low-double-digit percent decline year-over-year since the U.S. launch.
Average order value: High-teens percent decline year-over-year. Includes low-20s percent decline year-over-year since the U.S. launch.
Gross profit as percent of revenue: Approximately 18%.
Sales & Marketing expense as percent of revenue: Approximately 15%.
“Visits to our website have increased and conversion has improved,” continued Johnson. “Our promotional offers and expanded product assortment are resonating with customers, and they love the refreshed mobile app. Since the U.S. launch, sales from the mobile app have outpaced other platforms. We are also seeing strong engagement within our historic customer base, and the mix of orders from Welcome Rewards members has increased 500-basis points since the U.S. launch. Partner suppliers continue to add new assortment. We have added nearly 1.3 million new SKUs since early-June. The bedding, bath, and kitchen categories are leading the improvement in our topline performance in the U.S. We plan to share additional details related to our 3Q 2023 performance on our next earnings call.”
Overstock.com, Inc. (NASDAQ:OSTK) is a technology-focused innovator based in Salt Lake City, Utah and owner of the Bed Bath & Beyond brand and other intellectual property related to the brand. Bed Bath & Beyond is an online home furnishings and furniture retailer in the United States and Canada. The leading ecommerce website sells a broad range of new home products at low prices, including furniture, décor, area rugs, bedding and bath, home improvement, and more. The online shopping site features millions of products that tens of millions of customers visit each month. Overstock regularly posts information about the Company and other related matters on the Newsroom and Investor Relations pages on its website.
Bed Bath & Beyond, Beyond, Welcome Rewards, Overstock, and Overstock.com are trademarks of Overstock.com, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding impacts of our use of the Overstock and Bed, Bath & Beyond brands and our third quarter 2023 performance update. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 24, 2023, Form 10-Q for the fiscal quarter ended March 31, 2023, which was filed with the SEC on May 2, 2023, Form 10-Q for the fiscal quarter ended June 30, 2023, which was filed with the SEC on July 31, 2023, and in our subsequent filings with the SEC.