Overstock.com 2012 Annual Report Download - page 53
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Table of Contents
The primary reason for the decrease in direct revenue for the year ended December 31, 2012 was a shift in sales mix, particularly in Apparel and
Shoes, from a direct inventory-based model to a fulfillment partner-based model to reduce exposure from seasonal inventory and mark downs; partially
offset by an increase in sales of home and garden products.
The primary reason for the increase in fulfillment partner revenue for the year ended December 31, 2012 was an increase in sales of home and
garden products; partially offset by decreases in sales of electronics, jewelry and watches and books and media.
Total revenues from other businesses were $657,000 and $1.7 million for the years ended December 31, 2012 and 2011, respectively. Total
revenues from international sales were $10.2 million and $8.8 million for the years ended December 31, 2012 and 2011, respectively.
See "Executive Commentary" above for additional discussion regarding revenue.
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; 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, 2012 and 2011 (in thousands):
Gross margins for the past eight quarterly periods and years ending December 31, 2012 and 2011 were:
44
Revenue, net
Direct $ 155,516 $ 163,609 $ (8,093) (4.9)%
Fulfillment partner 943,773 890,668 53,105 6.0%
Total net revenues $ 1,099,289 $ 1,054,277 $ 45,012 4.3%
Cost of goods sold
Direct $ 140,536 $ 149,660 $ (9,124) (6.1)%
Fulfillment partner 760,323 725,529 34,794 4.8%
Total cost of goods sold $ 900,859 $ 875,189 $ 25,670 2.9%
Gross Profit
Direct $ 14,980 $ 13,949 $ 1,031 7.4%
Fulfillment partner 183,450 165,139 18,311 11.1%
Total gross profit $ 198,430 $ 179,088 $ 19,342 10.8%
Direct 8.0% 8.3% 10.3% 11.5% 9.6%
Fulfillment Partner 20.0% 19.6% 19.4% 18.9% 19.4%
Combined 18.1% 18.0% 18.2% 17.9% 18.1%
Direct 10.7% 9.6% 6.6% 7.0% 8.5%
Fulfillment Partner 20.7% 18.1% 17.6% 17.8% 18.5%
Combined 18.9% 16.9% 16.0% 16.2% 17.0%