Shares of Overstock.com Inc. OSTK took a 6.9% hit in premarket trading Wednesday, after the online home furnishings seller reported a surprise fourth-quarter loss and revenue that fell well short of expectations, amid “shifting” consumer demand and a “highly promotional” competitive environment. The company swung to a net loss of $15.5 million, or 34 cents a share, from income of $32.9 million, or 68 cents a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 4 cents missed the FactSet consensus for earnings per share of 2 cents. Revenue declined 33.9% to $404.9 million, below the FactSet consensus of $448.7 million, as active customers dropped 36% to 5.2 million. The company said 2022 was a “transformative” year, as it removed all non-home merchandise from its site. “Revenue declined 30% for the year, driven by the weak macroeconomic backdrop that impacted consumer sentiment and our strategic actions to become a prominent home-only on-line retailer,” said Chief Executive Jonathan Johnson. The stock has dropped 11.7% over the past three months through Tuesday, while the S&P 500 SPX has eased 0.2%.
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