Overstock.com 2011 Annual Report Download - page 71

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Table of Contents
Total net revenue increased 8% to $349 million for the three months ended December 31, 2010, from $322 million for the three months ended
December 31, 2009. Direct revenue increased 26% to $69.2 million for the three months ended December 31, 2010, from $55.1 million for the three months
ended December 31, 2009. Fulfillment partner revenue increased 5% to $280 million for the three months ended December 31, 2010, from $267 million for
the three months ended December 31, 2009.
Total revenues from Auctions, Cars and Real Estate businesses were $2.9 million and $2.1 million for the years ended December 31, 2010 and 2009,
respectively. Total revenues from International sales were $9.4 million and $5.1 million for the years ended December 31, 2010 and 2009, respectively.
See "Executive Commentary" above for additional discussion regarding revenue and revenue growth.
Gross profit
Our overall gross margins fluctuate based on our sales volume mix between our direct business and fulfillment partner business; changes in vendor and /
or customer pricing, including competitive pricing, and inventory management decisions within the direct business; sales coupons and promotions; product
mix of sales; and operational and fulfillment costs.
The following table reflects our net revenues, cost of goods sold and gross profit for the year ended December 31, 2010 and 2009 (in thousands):
Year ended December 31,
2010 2009 $ Change % Change
Revenue, net
Direct $ 209,646 $ 150,901 $ 58,745 38.9%
Fulfillment partner 880,227 725,868 154,359 21.3%
Total net revenues $ 1,089,873 $ 876,769 $ 213,104 24.3%
Cost of goods sold
Direct $ 187,124 $ 130,890 $ 56,234 43.0%
Fulfillment partner 713,109 581,127 131,982 22.7%
Total cost of goods sold $ 900,233 $ 712,017 $ 188,216 26.4%
Gross Profit
Direct $ 22,522 $ 20,011 $ 2,511 12.5%
Fulfillment partner 167,118 144,741 22,377 15.5%
Total gross profit $ 189,640 $ 164,752 $ 24,888 15.1%
Gross margins for the past eight quarterly periods and years ending December 31, 2010 and 2009 were:
Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010
Direct 13.8% 11.7% 9.1% 9.0% 10.7%
Fulfillment Partner 18.8% 19.4% 18.7% 19.0% 19.0%
Combined 17.9% 18.0% 16.9% 17.0% 17.4%
Q1 2009 Q2 2009 Q3 2009 Q4 2009 FY 2009
Direct 12.9% 18.0% 11.8% 11.9% 13.3%
Fulfillment Partner 21.0% 21.3% 20.7% 18.1% 19.9%
Combined 19.5% 20.7% 19.3% 17.1% 18.8%
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