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Dive Brief:
As Beyond Inc. increases its focus on digital assets, the company’s second quarter net revenue dropped 29.1% year over year to $282 million, according to a company press release Monday. The company recorded a $19 million net loss, a 55% improvement from a $42.5 million loss the year before.
Active customers declined 30% to almost 4.4 million while order frequency per active customer dropped 5.4% and average order value increased 7.2%, per a company presentation. Beyond — which owns Bed Bath & Beyond, BuyBuy Baby and Overstock — did not provide forward looking guidance.
Overstock will lean into a “more affluent customer” going forward with plans to launch an expanded fine jewelry and fine watch category in Q3 with brands including Rolex, Beyond Executive Chairman and Principal Executive Officer Marcus Lemonis told analysts on a Tuesday call.
Dive Insight:
Overstock will expand its existing luxury goods offerings in an effort to differentiate itself from the Bed Bath & Beyond banner.
“We did a lot of research in the last six months, going back to legacy Overstock customers and focus grouping them over and over and over again,” Lemonis said on the call. “And what we learned is that the Overstock brand was built on confidence with big brands and high value with a discerning customer looking for great, great brands, luxury brands in fact, at great prices.”
Beyond has developed a strategic relationship with home retailer Kirkland’s — now called The Brand House Collective — and tasked it with leading brick-and-mortar efforts.
After conducting a study of Kirkland’s operations, Overstock plans to open at least four stores, Lemonis said in April. The Brand House Collective will also open a new Bed Bath & Beyond Home store in Nashville, Tennessee, next month and accept old coupons from the iconic retail banner.
However, Beyond is eyeing growth outside of traditional retail.
“We continue to be laser focused on strengthening our core e-commerce retail business while actively unlocking value in our blockchain asset portfolio,” Lemonis said in a statement.
The company is financially involved with the tZero brokerage platform operated by tZero Securities, which it has worked with to offer digital tokens connected to certain IP for the BuyBuy Baby and Overstock banners. Beyond is also involved in the blockchain and agriculture company GrainChain, which Lemonis expressed praise for on Tuesday’s call.
“We are really a split personality business,” Lemonis added. “We operate a core e-commerce business, but we have a goal and a desire to continue to deploy capital intelligently in the blockchain, bitcoin and the crypto space.”