Layoffs and other cost-cutting programs earlier this year helped Salt Lake-based Overstock.com Inc. narrow its loss for the second quarter, the company reported Wednesday.
Overstock.com, a "closeout" retailer that sells discount merchandise over the Internet, reported revenue of $28.8 million for this year's second quarter, a jump of 101 percent from $14.4 million during the same period of 2002.
Net loss for this year's second quarter was $1.1 million, or 7 cents per share, compared to a net loss of $2.4 million, or 20 cents per share, in the 2002 period.
In this year's first quarter, Overstock posted a loss of $3.9 million, or 26 cents per share.
"Several factors contributed to our improved bottom line," said Patrick Byrne, Overstock's chief executive officer, in a prepared statement. "In April we reduced our corporate payroll by 15 percent to better align expenses with revenues; we restructured or eliminated underperforming marketing programs, which has helped lower our marketing spend; and we improved our gross margins.
"In short, if this was a four-round fight, I'd say we were unexpectedly dropped to the canvas at the end of the first round, but we got our knees back under us in the second, and we are getting up on our toes again now."
The company also announced Wednesday that, as of July 1, it will change its customer service and return policies and procedures. With the change, a majority of returns will be handled through Overstock's Salt Lake warehouse, regardless of whether they originally were shipped by Overstock or by one of its fulfillment partners.
As a result of the change, Overstock will record revenues generated from fulfillment partners on a gross basis instead of a net basis starting in the third quarter.
"Therefore, we anticipate third-quarter . . . revenues will increase dramatically," Byrne said. "I emphasize, however, that this does not change the underlying economics of our business one iota, though it may help investors better understand those economics."
Overstock released its earnings report after markets closed Wednesday. The company's stock closed up 41 cents Wednesday at $13.50 per share. In the past year, the price has ranged from $4.40 to $18.66.
E-mail: gkratz@desnews.com