MIDVALE, Utah — Beyond, Inc., the parent company of online furniture and home furnishings retailer Bed Bath & Beyond (formerly known as Overstock), reported record sales performance for the “Cyber 5” period from Thanksgiving Day through Cyber Monday, Nov. 23-27.
It also has initiated a fixed cost restructuring plan targeting approximately $25 million of annualized reductions by early 2025.
The Black Friday shopping weekend, or Cyber 5, produced the largest sales in the company’s history with estimated net revenue up 24% year-over-year. On an aggregate basis, bedding, bath, kitchen, and core furniture and décor categories delivered growth.
By the end of the period, active customers exceeded 5.3 million (measured on a trailing 12-month basis), and Beyond says it will continue to invest in building the customer file and taking back market share.
Beyond is also preparing a multi-phase relaunch of Overstock.com to reignite historical top performing categories.
“We are successfully deploying capital to grow our active customer base,” said Dave Nielsen, interim CEO and president and Adrianne Lee, chief financial officer, in a joint statement. “Our strong Cyber 5 sales and improved quarter-to-date sales performance are not distracting us from undertaking rigorous cost reductions to enhance long-term shareholder value.”
The statement noted that the company has begun action to reduce its fixed expense base and move to a more variable cost structure. It plans keep Beyond on track to drive market share growth, as outlined during its third quarter earnings call.
The fixed cost restructuring plan is expected to deliver annualized technology and G&A cost savings of approximately $25 million, which represents approximately 12.5% of Beyond’s trailing 12-month expense run-rate as of Sept. 3.
The plan includes about 10% reduction in the company’s current employee base, right sizing our facility footprint, re-negotiation of vendor contracts and outsourcing certain functions. Beyond says it expects savings from the plan to begin to accrue in late fourth quarter 2023.