Conference call participants:
David Chidester – Overstock.com, Inc. SVP Finance
Dr. Patrick Byrne – Overstock.com, Inc. Chairman, CEO
Jason Lindsey – Overstock.com, Inc. President, COO
Tracy Coenen – Fraud Investigator
On with the show…
David Chidester: Total revenue for the quarter was down 6% to $149 million. This was an improvement in growth from the first quarter when sales were down 11%.
Translation: We did badly. But less badly than last quarter. Better badly, if you will.
David Chidester: Gross margin expanded to an all-time high of 17.7%, up 370 basis points over last year. The gains in gross margin are due to significant improvement in our direct margins, which are up 610 basis points year-over-year to 16.7%, and an additional 150 basis point improvement in our fulfillment partner margins to 18.1%, both all-time highs. This is also a 170 basis point sequential improvement.
Translation: Catch us if you can! Was it a real improvement? Or did we dip into our reserves for a fake improvement? You’ll never know!