The online retailer said fourth-quarter net income would be a "percentage or two" less than its target of breakeven, due in part to a less-than-blockbuster holiday season.
Online closeout retailer Overstock.com Inc. on Tuesday warned that fourth quarter earnings and revenues would be less than expected.
The Salt Lake City company said net income would be a "percentage or two" less than its target of breakeven. In addition, revenue growth would fall within the range of 60 percent to 100 percent, or about two times the industry average, versus the three to four times that the company had posted in the past.
Overstock.com expected to be breakeven to positive for the quarter on earnings before interest, taxes, depreciation and amortization (EBITDA). The company, however, expected to have negative operating cash flows for 2005, due to a build up in inventory balances.
"We've had a nice holiday season, just not as nice a season as we've had in the past or as I'd hoped for," Patrick Byrne, president of Overstock.com, said in a statement.
Byrne said he had determined that this holiday season would be "critical for solidifying our brand in our customers' eyes."
"To get above the noise, we spent a few dollars more than we had hoped, but in my experience, over time, those dollars will pay large dividends," Byrne said.
Byrne's statement followed a Dec. 23 appearance on Bloomberg Television, in which he discussed how fourth quarter growth had slowed from its previous levels.
In late afternoon trading on Tuesday, Overstock.com stock was down $2.59, or 7.7 percent, on the NASDAQ to $31.05.
Overstock.com is scheduled to announce its fourth quarter results in late January or early February.
Bryne took some heat earlier this year after he blammed IT projects for a multimillion operating loss in the third quarter.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
IT Strategies to Conquer the CloudChances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.