Proactive Investors - Overstock.com (NASDAQ:OSTK) Inc shares climbed 16% to $29.66 in late-morning trading on Thursday after the e-commerce home goods retailer revealed that it will rebrand itself as Bedbathandbeyond.com following the completion of its $21.5 million acquisition of Bed Bath & Beyond’s intellectual property and digital assets.
Overstock noted that it will relaunch the Bed Bath & Beyond website in Canada within the next week, followed by a rollout of a website, mobile app and loyalty program in the US “weeks later,” as the company hopes that adopting the Bed Bath & Beyond brand name will help boost its falling sales.
“Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace,” Overstock CEO Jonathan Johnson said in a statement.
“The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the company for accelerated market share growth,” he added.
In April, Overstock announced that its first-quarter 2023 revenue dropped 29% year over year to $381 million while also recording a net loss of $10 million during the period.
The company added that it will not acquire any brick-and-mortar Bed Bath stores as part of the deal.
Shares of Overstock.com have surged 56% in the year to date.