After a year of transformations, Beyond, the former Overstock and new operator of Bed Bath & Beyond’s retail operations, said it experienced sales success during the Thanksgiving weekend ending Cyber Monday and announced a forthcoming online fireside chat that will include newly named company board co-chair Marcus Lemonis.
The online event, hosted by Needham & Co., is scheduled for Wednesday, December 13, at 11 a.m. Eastern time. Lemonis, interim CEO and President Dave Nielsen and CFO Adrianne Lee are set to participate in the event, which will address recent changes in leadership and clarify aspects of Beyond’s go-forward strategy including corporate cost reductions, according to the company.
As the holiday sales season proceeds, Beyond reported its Bed Bath & Beyond operation enjoyed record sales performance for the Cyber 5 period from Thanksgiving, November 23, through Cyber Monday, November 27.
In the Cyber 5 period, estimated net revenue grew 24% year-over-year, Beyond asserted. On an aggregate basis, the bedding, bath, kitchen and core furniture and décor categories all delivered growth. By Cyber Monday, active customers exceeded 5.3 million measured on a trailing 12-month basis, according to the company.
Efforts in customer acquisition have been a key element in Beyond’s agenda as it melds the Overstock and Bed Bath & Beyond constituencies and seeks to attract new shoppers. Beyond maintained it will continue to invest in building the customer file and retaking market share lost in recent years.
Beyond also confirmed it would continue a previously announced initiative that would result in a multi-phase relaunch of overstock.com incorporating operations it historically pursued but are not part of its Bed Bath & Beyond plans.
In addition, Beyond initiated a fixed cost restructuring plan targeting $25 million of annualized reductions by early 2025, one that the company expects to draw from annualized technology and G&A cost savings. The $25 million represents 12.5% of the company’s trailing 12-month expense run-rate as of September 30, Beyond noted. It also includes a 10% reduction in the company’s current employee base, right-sizing the facility footprint, re-negotiating vendor contracts and outsourcing certain functions.
In a joint statement, Dave Nielsen, Beyond interim CEO and president, and Adrianne Lee, CFO, explained the company is successfully deploying capital to grow its active customer base. The strong Cyber 5 sales and an improved quarter-to-date sales performance aren’t distracting Beyond from undertaking rigorous cost cutting moves designed to enhance long-term shareholder value, the executives added, which includes reducing the fixed expense base and shifting to a more variable cost structure to maximize efficiency.
Nielsen and Lee pointed out the cost-cutting initiatives shouldn’t affect Beyond’s ability to drive revenue growth and increase the active customer base. Rather, they noted, the company continues executing against a strategy that includes a commitment to enhance the value of the operation and drive market share growth.