Revenue at the Bed Bath & Beyond business, which was brought back online by Overstock.com a month ago, has shown a year-over-year decline. According to Overstock, sales at Bed Bath & Beyond have dropped by a mid-teen percentage so far in the third quarter, with a low double-digit decline since the launch of the new website on August 1.
Despite the decline in sales, the number of Bed Bath & Beyond customers has increased and now exceeds 4.8 million. Overstock also reported a year-over-year increase in orders.
Chief Executive Jonathan Johnson expressed optimism about the company’s performance, stating that their top line performance is steadily improving. Overstock experienced strong growth over the Labor Day weekend, particularly in the bedding, bath, and kitchen categories.
Johnson further noted that website visits have increased and conversion rates are improving. Additionally, sales from Overstock’s mobile app have outperformed other platforms since the U.S. launch.
Overstock, known for its furniture sales, acquired some of Bed Bath & Beyond’s intellectual-property assets in June and rebranded under the former big-box retailer’s banner. As a result, Overstock’s website now redirects to Bed Bath & Beyond’s website.
In premarket trading, shares of Overstock fell by 10% to $24.62.
