Overstock.com, Inc. (NASDAQ:OSTK) Q4 2022 Earnings Call Transcript

Jonathan Johnson: No, I think, there’s a lot of similarities, Tom. I mean, at times where consumers look to stretch their wallet, and they become more thoughtful, the term I heard yesterday is more choiceful in their purchasing. Overstock has historically done well. Turn of the century, dot-bomb was your word. We saw an Overstock went public and was the unique position and we were strong. During the great recession, we — as we saw in home furnishing and furniture, in particular, strong growth in our business then. So as customers look to stretch their dollars, they’re more thoughtful in purchasing smart value residents more and more of them become savvy shoppers. So it’s hard to predict what the economy looks like in 2023, as I noted in my remarks, but I think we’re well-positioned for it. And the strategies we’re employing and deploying, I think are good for growing in any kind of environment, but particularly a tough economic environment.

Thomas Forte: Thanks Jonathan.

Operator: Thank you. One moment for our next question. And our next question comes from the line of Anna Andreeva with Needham. Your line is now open.

Anna Andreeva: Great, thank you so much and good morning, guys. You guys have been helpful in the past in providing KPIs for the business and AOV slowed a bit this past quarter, just any color you could provide on how we should think about that as we go through 2023, should AOV be still positive for the year? And secondly, I was just curious performance of Overstock Day events that you ran in October. Any learning from that that could be applied to events going forward and anything to call out about the new customer demo from this event? Thank you so much.

Jonathan Johnson: Adrianne, why don’t you talk to AOV and what we saw in Q4, like we usually do, and Dave maybe you could talk to Customer Day and then I’ll also add some color at the end.

Adrianne Lee: Great. So Anna, as we mentioned, not giving top line guidance, I’ll share a little bit about AOV you mentioned didn’t grow as much as we have seen that 4%. Again, mainly driven by mix, but I would say as I talked about gross margin, highly promotional discounting environment, clearly that impacts your AOV. So we have pretty a sizable impact to that. I would also say that as Jonathan mentioned, we increase our assortment and different offerings, we should see potentially some different seasonality of items, of which we sell and then consumer sentiment what people are buying, if they’re buying the actual patio furniture, or kind of, patio refresh items. So I think those are some things that we will expect to still see some potential variances in AOV, pending those type of items.

Dave Nielsen: And I would just add regarding Overstock Day or Customer Day as you refer to it, Anna, we continue to lean into being a mobile first retailer. And our mobile app was where we leaned in heavily here. As you heard in the remarks, Jonathan mentioned, we had an increase of 500 basis points in the percentage of our 2022 mobile app purchases to our sales. That was that was directly influenced by the ambassador campaign, brand ambassadors. We continue to push on our social media front, an area where we know we have opportunity to grow. Jonathan?