Overstock.com Q1 Earnings Miss Estimates As Inflation Bites

Overstock.com Inc OSTK reported a first-quarter FY22 sales decline of 19% year-on-year to $536 million, missing the consensus of $574.54 million.
Active customers decreased 26% Y/Y to 7.4 million. Orders delivered fell 33% Y/Y to 2.4 million, and the average order value gained 21% Y/Y to $221.
EPS of $0.21 missed the analyst consensus of $0.22.
Gross profit fell 18.4% Y/Y to $125.21 million with a gross profit margin of 23.4%.
Operating margin was 2.3%, and operating income for the quarter declined 53% to $12.5 million.
Adjusted EBITDA decreased to $21.5 million from $33.8 million last year.
The company held $493 million in cash and equivalents as of March 31, 2022. Cash provided by operating activities for the quarter amounted to $33.2 million.
"What we could not have anticipated was the magnitude of the impact of inflation coupled with an adverse geopolitical environment, which ultimately impacted consumer sentiment," said CEO Jonathan Johnson.
Price Action: OSTK shares are trading lower by 0.70% at $31.20 in premarket on the last check Thursday.