In 2020, the furniture and home decor business boomed as people stuck in the home spruced up or relocated entirely to new spaces. The continuing strength of housing means that the growth can continue, says Overstock.com CEO, Stephen Henninghoff.
First, we have a workforce trend with people moving to different countries in the country. Jonathan Johnson told Yahoo Finance Live it was good for the furniture industry.
The COVID 19 - Pandemic sparked a Great American migration: More than 7 million households moved counties last year according to a Wall Street Journal analysis of the change of address data for the United States Postal Service.
Another future driver of growth will be outside the home, according to Johnson. From the four walls of their home to the four corners of their house, people are expanding their living spaces. He talked about patio furniture, outdoor recreational equipment.
Overstock's revenue nearly doubled in the first quarter, and while its revenue of $660 million is still dwarfed by that of its larger pure-play competitor Wayfair, it is growing more rapidly. What is the best way to get a correct phrase?
It's not really a question of whether people will be buying furniture and home furnishings. It was where, overstocky Johnson said. This is becoming increasingly online. Was purchased online in the year of Fifteen months ago 23% of home furnishings. It was once 35% or more, now it is upwards of 35% or more.
However, the trend to buy furniture is not limited by online retailers. A recent analysis of Placer.ai found that traffic at many furnishing and decorative chains held in the first few months of the year steady. Visits were particularly strong for home and floor and decor with traffic up 36.5% and 32.1% respectively in the first four months of 2021 compared to the same period in 2019
For Overstock, the renewed focus on its retail business follows a period of preoccupation with blockchain investments under eccentric founder and former CEO Patrick Byrne who sold all his shares to Overstock in 2019. Johnson, who later completed the Overstock blockchain portfolio, Medici Ventures, managed the management of these assets to the new firm Pelion Venture Partners, throughout the year.
We think these companies are in better hands and if they have exits or financial events, that will be great for Overstock and help our balance sheet and bottom line, Johnson said.
Johnson has also introduced new executives, including a chief financial officer and chief marketing officer, among other changes.
Investors have taken notice, with the stock soaring near 500% since Johnson was appointed in September 2019.
Peter J. Keith, senior research analyst at Overstock, is one of those who has been impressed, more so after a recent conference and presentation with the management of Piper Sandler. OSTK has made new enhancements to better position the basic inventory. These include: focus on home furnishings, expanding the assortment, improving pricing, marketing efforts targeted towards core customer automated customer service, improved delivery accuracy. While these changes are simple block and being tackling, we believe these basic adjustments can be highly impactful for an extended period, wrote he in a note.
Johnson told Yahoo Finance Live that the changes have been measured and deliberate: We emphasised culture and what that means really is execution. We have been telling the market what we would do, and we've been performing in.
Julie Hyman co-anchor of Yahoo Finance Live, weekdays 9 am - 11 am ET. Follow her on Twitter @juleshyman and read others.
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