- Overstock's revenue jumped 109% year over year to a record $783 million in the second quarter, while operating income reached $39 million, compared to a $25.8 million loss in the year-ago period.
- Overstock CEO Jonathan Johnson said in a press release that the number of new retail customers tripled year over year.
- "Importantly, our customers are buying our core products — home furnishings — from the safety of their homes as part of the country's new normal," Johnson said. "If business continues as I expect, our Overstock Retail business will achieve sustainable, profitable growth this year."
Overstock's fortunes have taken a dramatic turn, in the opposite direction of many legacy retailers that were forced to close their stores and shut off their largest channel of revenue.
Being an e-commerce player and selling one of the categories that saw increased demand during widespread stay-at-home orders, Overstock was uniquely positioned for the current chaotic moment in retail.
The company needed a boost from somewhere. Its retail arm generates by far most of the company's revenue, as Overstock tries to transform into a vehicle for blockchain technology.
But competing with the likes of Wayfair and other online competitors took their toll. Overstock had racked up losses over the years, and when it pulled back on marketing to rein in costs, it lost sales. Executives have emphasized the need for "sustainable, profitable" growth in the online retail unit, as its bottom line has improved slowly in tandem with falling sales.
As for that competitor, Wayfair, it too has posted revenue gains this year amid the pandemic, as well as steep losses.
Along with trying to rebuild its sales and profits, Overstock is trying to shake off protracted drama in the C-suite that unfolded last year as former longtime CEO Patrick Byrne stirred up controversy, tied vaguely to the special prosecutor's investigation into the 2016 Trump campaign's Russian ties. Byrne ultimately stepped down from his position last year. The company was also subject to shareholder lawsuits and an SEC probe over the company's tZero subsidiary and its digital, blockchain-based token.