Overstock.com 2015 Annual Report Download - page 59
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The following table sets forth our results of operations expressed as a percentage of total net revenue for the years ended December 31, 2014, 2013
and 2012:
Revenue, net
Direct
9.8 %
12.0 %
14.1 %
Partner and other
90.2
88.0
85.9
Total net revenue
100.0
100.0
100.0
Cost of goods sold
Direct
8.6
10.4
12.8
Partner and other
72.7
70.6
69.2
Total cost of goods sold
81.3
81.0
81.9
Gross profit
18.7
19.0
18.1
Operating expenses:
Sales and marketing
7.3
7.0
5.8
Technology
5.8
5.5
6.0
General and administrative
4.8
5.2
5.2
Total operating expenses
17.9
17.7
17.0
Operating income
0.8
1.3
1.1
Interest income
—
—
—
Interest expense
—
—
(0.1)
Other income, net
0.1
—
0.3
Income before income taxes
0.9
1.3
1.3
Provision (benefit) for income taxes
0.3
(5.2)
—
Consolidated net income
0.6 %
6.5 %
1.3 %
The following table reflects our net revenue for the years ended December 31, 2014 and 2013 (in thousands):
Revenue, net
Direct
$ 147,460
$ 156,032
$ (8,572)
(5.5)%
Partner and other
1,349,643
1,148,185
201,458
17.5 %
Total revenue, net
$ 1,497,103
$ 1,304,217
$ 192,886
14.8 %
The primary reason for increased total net revenue for the year ended December 31, 2014, as compared to the same period in 2013, was a 10%
increase in orders, coupled with a 7% increase in average order size, from $158 to $169. These increases were partially offset by increased promotional
activities including coupons, site sales, and Club O Rewards (which we recognize as a reduction of revenue) due to our driving a higher proportion of our
sales using those channels. The increases were also partially offset by an increase in the revenue we defer from orders taken but not delivered at year end due
to higher average daily sales in the last week of the period.
The primary reason for decreased direct revenue for the year ended December 31, 2014, as compared to 2013, was a decrease in sales of clothing and
shoes and a sales mix shift in bedding and bath products from our direct to our partner business.
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