American retailer Beyond reports 16.6% YoY revenue decline in Q3 2024

The cost of goods sold decreased, totalling $245.5 million in Q3 2024, down from $290.4 million in the same period last year. Beyond, Inc's total operating expenses saw a reduction in Q3 2024, totalling $109.5 million (down from $123.8 million in Q3 2023). The net interest income decreased to $1.6 million in Q3 2024 from $3.2 million in Q3 2023.

The company delivered 1.6 million orders in the Q3 2024, a decrease of 19 per cent Y0Y. The active customers reached of 6.0 million, an increase of 21 per cent YoY.

Other net expense of the company reduced to $18.8 million in Q3 2024, compared to $38.7 million in Q3 2023. The company’s diluted net loss per share was $1.33, adjusted diluted net loss per share (non-GAAP) was $0.96 and adjusted EBITDA (non-GAAP) stood at $32 million, which represents (10.2 per cent) of net revenue. The cash and cash equivalents of the company totalled $140 million at the end of the third quarter, as per a press release by Beyond Inc.

In the nine months (9M) ended September 30, 2024, the net revenue of the company fell 7.2 per cent to $1.09 billion from $1.18 billion in 2023. For the nine-month period in 2024, cost of goods sold was $871.3 million, a 1.5 per cent decrease from $884.5 million in the same period of 2023. Gross profit in the 9M period was $220.5 million, down from $292.2 million in 2023.

The company suffered a loss of $3.88 per share, up from a $3.25 loss in the nine months period in 2023, stated the release.

“We delivered sequential improvement in gross margin and continued to recognize the benefits of our cost reduction actions, ultimately delivering against our commitment to improve adjusted EBITDA,” said Adrianne Lee, chief financial and administrative officer.

“We recently announced the sale of our headquarters, which is expected to close in the fourth quarter, and announced a $20 million annualized reduction in staff-related expenses as we drive towards profitability and continue create a more variable and leverageable cost structure to support our evolving business needs. All in, we expect to have reduced our fixed expense base by an annualised $65 million heading into 2025,” added Lee.

“We are focused on driving specific actions to strengthen our core asset-light ecommerce business and transforming Beyond to an affinity marketing model. In our core business, we have identified four key areas of improvement: 1) marketing efficiency, 2) sales growth, 3) margin, and 4) expense management. As we continue to transform and build out our model, brands and to monetise data through our enhanced CRM and database capabilities, stand up a global loyalty program across both our owned and partnered brands, and leverage our IP through a variety of global licensing partnerships,” said Dave Nielsen, president.

“We are in the process of transforming our asset-light business into an affinity and data monetisation model with a strong technology focus, comprised of a collection of brands offered on a comprehensive platform from which customers can unlock value within the four walls of their home and four corners of their property,” said Marcus Lemonis, executive chairman.

“We are still in the early innings of creating a robust data cooperative that will serve as the affinity and loyalty program foundation and having recently announced partnerships with both The Container Store and Kirkland’s Home, we are well on our way. What we are ultimately building at Beyond is intended to leverage the combined strengths of all involved parties, driving improved financial performance and shareholder value,” added Lemonis.

Fibre2Fashion News Desk (SG)