Shares of Beyond Inc (NYSE:BYON) are headed south in after-hours trading after the parent company of Overstock, Bed Bath & Beyond, and now Zulily, reported a wider Q1 loss from a year ago even as revenue improved marginally.
While delivered orders increased by 27% year-over-year, active customers increased by 26% and net revenue was up 0.3% to $382M, sales missed expectations by $7M and the company’s loss widened to $1.22 per share from $0.10 a year ago. This missed the Street’s consensus estimate by 34 cents.
“We are pleased with the growth in active customers and transactions during the quarter,” said CFO Adrienne Lee. “However, in analyzing the profitability of that growth, we are making the strategic decision to focus on investments to launch these brands and acquire customers with a higher probability of repeat behavior.”
This includes a plan to reduce expenses by $45M on an annualized basis and to eliminate unnecessary fixed costs, to ensure profitability in the long term.
Taking a closer look at the company’s costs, cost of goods sold rose 10%, marketing expenses were up 42%, customer service and merchant fees rose by 16%. This contributed to a net loss of $72M from $10.3M in the same quarter last year.
Shares are down ~9% in after-hours.
