Overstock.com 2013 Annual Report Download - page 42
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Table of Contents
The following table sets forth our results of operations expressed as a percentage of total net revenue for the years ended December 31, 2013, 2012
and 2011:
Revenue, net
Direct
12.0 %
14.1 %
15.5 %
Fulfillment partner
88.0
85.9
84.5
Total net revenue
100.0
100.0
100.0
Cost of goods sold
Direct
10.4
12.8
14.2
Fulfillment partner
70.6
69.2
68.8
Total cost of goods sold
81.0
81.9
83.0
Gross profit
19.0
18.1
17.0
Operating expenses:
Sales and marketing
7.0
5.8
5.9
Technology
5.5
6.0
6.4
General and administrative
5.2
5.2
6.4
Restructuring
—
—
—
Total operating expenses
17.7
17.0
18.7
Operating income (loss)
1.3
1.1
(1.7)
Interest income
—
—
—
Interest expense
—
(0.1)
(0.2)
Other income, net
—
0.3
—
Net income (loss) before income taxes
1.3
1.3
(1.9)
Provision (benefit) for income taxes
(5.5)
—
—
Net income (loss)
6.8 %
1.3 %
(1.9)%
The following table reflects our net revenue for the years ended December 31, 2013 and 2012:
Revenue, net
Direct
$156,032
$155,516
$516
0.3%
Fulfillment partner
1,148,185
943,773
204,412
21.7%
Total revenue, net
$1,304,217
$1,099,289
$ 204,928
18.6%
The primary reason for increased total net revenue for the year ended December 31, 2013 was an increase of 17% in average order size, from $135 to
$158, coupled with a 2% increase in orders. The increase in average order size is largely due to a sales mix shift into home and garden products.
The primary reason for increased direct revenue for the year ended December 31, 2013 was a continued shift in sales mix into our home and garden
products, partially offset by a decrease in sales of clothing and shoes due to our shift from a direct inventory-based model to a fulfillment partner-based model
to reduce exposure from seasonal inventory and mark downs.
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