Overstock Tumbles on Most Recent Numbers

Overstock.com, Inc. (NASDAQ:OSTK) stubbed its toes on financial figures released Monday.

The company, based in Salt Lake City, reported total net revenue of $456.3 million for a 1% decrease. This decrease was primarily due to a 4% decrease in orders driven by a 13% reduction in sales and marketing expenses.

We also had an increase in promotional activities, including coupons and site sales (which we recognize as a reduction of revenue), due to our driving a higher proportion of sales using such promotions.

The decrease in orders was partially offset by a 3% increase in average order size (excluding promotional activities) primarily due to a continued sales mix shift into higher-priced products.

Gross profit was $81.6 million and $85.8 million for Q4 2018 and 2017, respectively, a 5% decrease, representing 18.0% and 18.8% gross margin for those respective periods. The decrease in gross margin was primarily due to increased promotional activities, partially offset by a continued shift in sales mix into higher margin products.

Net cash used in operating activities was $138.9 million, up from $35.2 million for 2017, respectively. The $103.7-million increase is primarily due to increased consolidated net loss.

OSTK had cash and cash equivalents of $141.5 million, down from $203.2 million in the prior-year The decrease is primarily due to operating losses, cash used for acquisitions and other investments, and the repayment of its building loan.

Shares faded $2.18, or 10.7%, to $18.26