Rewards program helps drive Q3 growth at Overstock.com
Salt Lake City – Overstock.com reported year-over-year gains in net income and revenue during the third quarter of fiscal 2013, which the company partially attributed to growing participation in its Club O paid loyalty program.
Net income increased 31% from $2.7 million to $3.5 million, while revenue grew 18% from $255.4 million to $301.4 million. The growth in net revenue was primarily due to a 16% increase in average order size, from $147 in third quarter 2012 to $170 in third quarter 2013, coupled with a 2% increase in orders.
The company also said Club O customers are spending more and a new warehouse is enhancing delivery operations.
"In Club O, we built what we believe is the best, most generous loyalty program on the Internet, with free shipping, 5-25% rewards on products, and books priced at Amazon prices but with 15% rewards, all for $19.95 per year,” said Patrick Byrne, chairman and CEO of Overstock.com. “Our Club O customers are rewarding us with their business. In addition, with the opening of our new warehouse in Pennsylvania, we are now providing even faster delivery to our customers on the east coast."
NRF: Shutdown deal avoids issues
Washington, D.C. – Matthew Shay, president and CEO of the National Retail Federation released a statement on the decision to reopen the federal government through Jan. 15 and raise the debt ceiling until Feb. 7. Shay said that while the agreement provides some satisfaction, it essentially continues debate and postpones difficult economic decisions that must be made.
“As we head into the holiday shopping season, retailers and consumers need stability and certainty from policymakers in Washington and assurance that the economy will not implode due to their actions or more important, lack thereof,” said Shay. “This new norm of legislating from crisis to crisis is no way to govern.”
Shay also said that the economic recovery is retail-led and consumer-driven, and that cuts in consumer spending hurt retailers as well as the economy as a whole and U.S. taxpayers.
“Today’s decision will provide some breathing room for legislators to negotiate and compromise, but it is not a solution to our long-term economic or fiscal challenges,” concluded Shay.
Report: Jos. A. Bank may consider hostile bid for Men’s Wearhouse
Hampstead, Md. – Jos. A. Bank Clothiers Inc. reportedly may consider a hostile takeover bid for Men’s Wearhouse. According to Bloomberg, Jos. A. Bank chairman Robet Wildrick said he would prefer a friendly acquisition but his company is not ruling any options out.
On Oct. 9, Jos. A. Bank made a $2.3 billion offer that was 36% higher than Men’s Wearhouse’s closing stock value on Oct. 8. However, Men’s Wearhouse publicly rejected the bid, saying it undervalued the company and was not in the best interests of shareholders.
Wildrick said Jos. A. Bank would not make another bid without looking at Men’s Wearhouse’s books, which it so far has not had access to, and would not close stores. Men’s Wearhouse has adopted a “poison pill” that prevents any stockholder from purchasing more than 10% of the company’s shares, but has said it would not necessarily refuse future offers. Men’s Wearhouse declined to comment in the Bloomberg article.