Overstock.com 2011 Annual Report Download - page 62
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Table of Contents
Results of Operations
The following table sets forth our results of operations expressed as a percentage of total revenue for 2011, 2010 and 2009:
Year ended December 31
2011 2010 2009
(as a percentage of total
revenue)
Revenue, net
Direct 15.5% 19.2% 17.2%
Fulfillment partner 84.5 80.8 82.8
Total net revenue 100.0 100.0 100.0
Cost of goods sold
Direct 14.2 17.2 14.9
Fulfillment partner 68.8 65.4 66.3
Total cost of goods sold 83.0 82.6 81.2
Gross profit 17.0 17.4 18.8
Operating expenses:
Sales and marketing 5.9 5.6 6.3
Technology 6.4 5.3 6.0
General and administrative 6.4 5.1 5.6
Restructuring — (0.1) —
Total operating expenses 18.7 16.0 17.9
Operating income (loss) (1.7) 1.4 0.9
Interest income — — —
Interest expense (0.2) (0.3) (0.4)
Other income, net — 0.2 0.4
Income (loss) before income taxes (1.9) 1.3 0.9
Provision (benefit) for income taxes — — —
Net income (loss) (1.9)% 1.3% 0.9%
Revenue
The following table reflects our net revenue for the years ended December 31, 2011 and 2010 (in thousands):
Year ended December 31,
2011 2010 $ Change % Change
Revenue, net
Direct $ 163,609 $ 209,646 $ (46,037) (22.0)%
Fulfillment partner 890,668 880,227 10,441 1.2%
Total revenue, net $ 1,054,277 $ 1,089,873 $ (35,596) (3.3)%
Revenues declined by 22% in our direct business due primarily to a transition of some of our clothing and shoes category to a fulfillment partner model
to reduce seasonal inventory risks. Revenue from our fulfillment partner business increased by 1%. The direct business declined to 16% of total revenue in
2011 from 19% in 2010, while our fulfillment partner business generated 84% of our total revenue in 2011 compared to 81% in 2010.
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