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Drugstore makeup brand e.l.f. Beauty raised its full-year guidance after reporting a 76% year-over-year increase in sales.
Shares soared in extended trading.

Tarang Amin (C), Chairman and CEO of cosmetics company e.l.f. Beauty Inc., rings the opening bell at the New York Stock Exchange (NYSE) to celebrate his company’s IPO in New York City, U.S. September 22, 2016. 
Brendan McDermid | Reuters

Drugstore makeup brand e.l.f. Beauty raised its full-year outlook Tuesday after reporting a 76% year-over-year sales jump, sending shares surging about 15% in extended trading.
Here’s what the cosmetics company reported for its fiscal first quarter of 2024 and what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: $1.10, adjusted, vs. 56 cents expected
Revenue: $216.3 million vs. $184 million expected

The company’s reported net income for the three-month period that ended June 30 was $53 million, or 93 cents per share, compared with $14.5 million, or 27 cents per share, a year earlier. Excluding one-time items, e.l.f. earned $62.9 million, or $1.10 per share.
Sales soared to $216.3 million from $122.6 million a year earlier.
The digitally native beauty company, which has grown its brand by harnessing the power of social media marketing, said those strong sales were the basis for raising its full-year outlook.
The company said it expects net sales to be between $792 million and $802 million, compared with a previous range of $705 million to $720 million. Analysts had been expecting a range between $713 million and $760 million, according to Refinitiv.
E.l.f. now expects adjusted full-year profits to be between $125 million and $127 million, compared with a previous range of $98.5 million to $100.5 million.
“This marks our 18th consecutive quarter of delivering both net sales growth and market share gains,” Tarang Amin, e.l.f.’s chairman and CEO, said in a news release. “We are one of only five publicly traded consumer companies out of 274 that has grown for 18 straight quarters and averaged at least 20% sales growth per quarter over that period.” More

Virgin Galactic reported second-quarter losses on Tuesday that were slightly wider the year-ago period, as the space tourism company pushes on toward flying customers on monthly flights.
Virgin Galactic flew two spaceflights during the second quarter: Its final test spaceflight and its first commercial spaceflight.
Virgin Galactic is spending heavily to develop its Delta-class spacecraft to fly at an improved weekly rate.

VMS Eve, operated by Virgin Galactic, returns after the company’s first commercial flight to the edge of space, at the Spaceport America facility, in Truth or Consequences, New Mexico, U.S., June 29, 2023. 
Jose Luis Gonzalez | Reuters

Virgin Galactic reported second-quarter losses on Tuesday that were slightly wider the year-ago period, as the space tourism company pushes on toward flying customers on monthly flights after launching commercial service.
For the quarter ended June 30, Virgin Galactic posted a net loss of $134.4 million, or 46 cents a share, compared with a loss of $110.7 million, or 43 cents a share, in the same period a year earlier.

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The company brought in revenue of $1.9 million during the quarter – up from $357,000 in the period a year prior – generated by “commercial spaceflight and membership fees related to future astronauts.”
Virgin Galactic flew two spaceflights during the second quarter: Its final test spaceflight and its first commercial spaceflight, the latter a long-awaited step to bring its service to market. It expects to fly its second commercial spaceflight on Aug. 10.
Virgin Galactic stock slipped about 3% in after-hours trading from its close at $4.14 a share. The stock is up 19% year-to-date.

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Virgin Galactic had cash and securities totaling $980 million at the end of the quarter, up from about $874 million at the end of the first quarter. That increase came as Virgin Galactic brought in funds through “at the market” sales of common stock.
“Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026,” Virgin Galactic CEO Michael Colglazier said in a statement.
The company has been spending heavily to expand its fleet beyond the current sole VSS Unity spacecraft. Virgin Galactic is developing its Delta-class spacecraft to fly at an improved weekly rate, noting the net loss for the second quarter was “primarily driven by an increase in research and development expenses related to the development of the future fleet.” More

Tiger Woods is joining the PGA Tour’s policy board as its sixth player director, a concession to its players as negotiations continue over a deal with Saudi-backed LIV Golf.
Last month, former AT&T CEO Randall Stephenson resigned from the board, citing concerns about accepting Saudi investment — something others in the tour, including players, have raised.
The tour and LIV so far have reached a framework agreement, but the deal, which has come under lawmakers’ scrutiny, has yet to be finalized.

Tiger Woods wipes his driver grip on the 18th tee box during the first round of the PGA TOUR Champions PNC Championship at The Ritz-Carlton Golf Club on December 17, 2022 in Orlando, Florida.
Ben Jared | PGA Tour | Getty Images

The PGA Tour on Tuesday said Tiger Woods would join its policy board, a concession meant to give players more input and oversight as negotiations continue for its controversial deal with Saudi-backed LIV Golf.
Woods joins the board less than a month after former AT&T CEO Randall Stephenson resigned due to concerns regarding the Saudi investment.

The move comes as controversy has surrounded the tour since it announced a proposed deal that would see it combine with LIV Golf, which is backed by the Saudi Arabia Public Investment Fund, an entity controlled by Saudi Crown Prince Mohammed bin Salman, and Europe’s DP World Tour.
Until the proposed deal was announced, the PGA Tour and LIV were embroiled in antitrust lawsuits – lobbed at each other – as players left the tour for big paydays at LIV. The lawsuits have since been squashed.
So far, only a framework agreement has been met and PGA player directors will have to sign off on an eventual definitive agreement. The proposed deal has been met with ire and confusion from lawmakers, members of the tour and fans.

‘For the players, by the players’

The tour said it reached this new agreement to ensure it “lives up to its mission of being a player-driven organization, ‘for the players, by the players.'” Woods will be the sixth player director on the board, which also includes five independent directors and the PGA of America director.
Other player directors include Patrick Cantlay, Charley Hoffman, Peter Malnati, Rory McIlroy and Webb Simpson.

“This is a critical point for the tour, and the players will do their best to make certain that any changes that are made in tour operations are in the best interest of all tour stakeholders, including fans, sponsors and players,” Woods said in the statement. “The players thank Commissioner Monahan for agreeing to address our concerns, and we look forward to being at the table with him to make the right decisions for the future of the game that we all love. He has my confidence moving forward with these changes.”

Rory McIlroy shakes hands with Tiger Woods on the 18th green after they completed a practice round prior to the 2023 Masters Tournament at Augusta National Golf Club in Augusta, Georgia, April 3, 2023.
Christian Petersen | Getty Images

Last month, Stephenson stepped down. In a memo viewed by CNBC, the tour said its four remaining independent directors, in consultation with its player directors and PGA director, would work together to fill his position.
Stephenson said in his memo to the board that he had “serious concerns” about the proposed deal and whether he could objectively evaluate or support it due to the U.S. intelligence report assessing that the Saudi crown prince ordered the killing of journalist Jamal Khashoggi in 2018.
PGA Tour golfers have voiced frustration the proposed deal was announced in June. PGA Tour Commissioner Jay Monahan said he had expected to be called a hypocrite and accepted the criticism.
Aside from the antitrust lawsuits – and the tour’s push to keep its players from leaving for LIV, as Phil Mickelson and Bryson DeChambeau did – LIV has been surrounded by controversy and criticism since its launch in 2022 since it’s backed by the Saudis. Critics have accused the sovereign wealth fund of “sportswashing” by using LIV to distract from the kingdom’s history of human rights violations.
Players came together “to uphold the tour’s core principles and ask that certain steps be taken immediately,” the tour said in a statement, adding that Monahan agreed to support the players and their requests.
In addition to Woods’ appointment, Monahan said the tour will work together with the players to amend the policy board’s governing documents to make it clear no major decision can be made in the future without prior involvement and approval of the player directors.
The proposed deal with PIF came together over a span of weeks, during which board members met with Saudi officials. Players learned of the deal either right before or when it was announced.
The latest agreement with the players includes that Colin Neville, the player directors’ special advisor, will be in the loop regarding the negotiations contemplated by the framework agreement. It also adds that player directors will have full transparency and the authority to approve or decline any potential changes to the tour as part of the negotiations.
So far, only a framework agreement has been met between PIF and the tour, which says it would create a for-profit subsidiary of the PGA Tour, and the new entity would manage commercial assets for all the tours. The tour would manage competitions, and has said it is leading the negotiations reach a finalized deal.
Tour representatives have defended and testified about the deal to a Senate subcommittee, saying they believe the PGA Tour would benefit from the proposed deal. Policy board independent director Jimmy Dunne said during his testimony that if the deal is completed, the tour would “definitely stay intact and becomes more powerful.”
Documents obtained by lawmakers showed that a proposed idea would have seen Woods and McIlroy own LIV golf teams and participate in at least 10 league events.
McIlroy has been one of the most outspoken critics of LIV, as well as the deal. He expressed agitation that the proposed deal was being referred to as a merger. More

CVS Health is cutting 5,000 jobs to reduce costs as the retail pharmacy giant furthers its push into health-care offerings, a person familiar with the matter told CNBC. 
The pharmacy chain had about 300,000 employees in the U.S. at the end of last year, according to a securities filing. 
A CVS spokesperson confirmed the layoffs and said they are not expected to impact “customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers.” 

A woman walks past a CVS Pharmacy in Washington, D.C., on Nov. 2, 2022.
Brendan Smialowski | AFP | Getty Images

CVS Health is cutting 5,000 jobs to reduce costs as the retail pharmacy giant furthers its push into health-care offerings, a person familiar with the matter told CNBC on Tuesday.
The pharmacy chain had about 300,000 employees in the U.S. at the end of last year, according to a securities filing. 

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A CVS spokesperson confirmed the layoffs and said they are not expected to affect “customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers.” The spokesperson added that employees laid off will receive severance pay and benefits, including access to outplacement services. 
“As part of an enterprise initiative to reprioritize our investments around care delivery and technology, we must take difficult steps to reduce expenses,” the spokesperson said in a statement to CNBC. “This unfortunately includes the need to eliminate a number of non-customer facing positions across the company.”
The Wall Street Journal first reported the job cuts Tuesday, citing an internal announcement to employees. It comes a day before CVS reports its second-quarter earnings. 
Rhode Island-based CVS operates more than 9,000 retail locations and 1,100 walk-in clinics nationwide. The company owns one of the nation’s largest health insurers and the biggest pharmacy benefit manager, which negotiates drug discounts with manufacturers on behalf of health insurers.
But CVS has sharpened its focus on health care over the past few years, following similar moves by rivals such as Walgreens and tech giant Amazon.

The company moved deeper into patient care with its nearly $8 billion acquisition of health-care provider Signify Health and $10.6 billion deal to buy Oak Street Health, which operates primary care clinics for seniors.
CVS cut its annual earnings forecast last quarter, citing the cost of those deals. More

Ford Motor said Tuesday the factory that builds its electric F-150 Lightning pickup has reopened after a six-week break for upgrades.
Recent price cuts on the EV spurred a sixfold increase in new orders.
Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, will be able to produce Lightnings at an annual rate of 150,000 vehicles — three times its previous output — by the end of September.

Ford Motor Company’s electric F-150 Lightning on the production line at their Rouge Electric Vehicle Center in Dearborn, Michigan on September 8, 2022. 
Jeff Kowalsky | AFP | Getty Images

Ford Motor said Tuesday the factory that builds its electric F-150 Lightning pickup has reopened after a six-week break for upgrades — and that recent price cuts on the EV have led to a significant increase in demand.
Ford cut the Lightning’s prices by as much as $10,000, depending on trim level, last month. The least expensive version of the truck now starts at about $50,000.

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Those price reductions spurred a sixfold increase in new orders for the Lightning, said Marin Gjaja, chief customer officer for Ford’s “Model e” EV unit, in a Tuesday press briefing.
While he declined to provide specific numbers, Gjaja did say that Ford now has “about 45 days’ worth” of orders for the electric truck.
More than half of new orders for the Lightning are for trucks with the higher-priced XLT trim, which starts at about $55,000 with 240 miles of EPA-estimated range, Gjaja said. Ford is modifying its production mix to increase supplies of the Lightning XLT, he said.
But recent production downtime means Lightning delivery totals will be modest until September, he said. Deliveries should ramp sharply once the upgraded factory hits its stride.
“We expect sales will start to significantly increase in later September, and certainly in October as supply begins to rapidly ramp in the latter half of the year,” Gjaja said.

Ford said Tuesday its Rouge Electric Vehicle Center, the Lightning’s factory in Dearborn, Michigan, has resumed production of the truck after a planned shutdown to make upgrades. The factory will be able to produce Lightnings at an annual rate of 150,000 vehicles — three times its previous output — by the end of September.
The factory has hired about 1,200 new employees to support the production increase, according to Debbie Manzano, Ford’s manufacturing director. Those new employees will complete training in about three weeks, she said.
Ford is also ramping up production at the factories that supply battery packs and electric motors for the Lightning, Manzano said. More

Angel Studios’ “Sound of Freedom” has generated nearly $150 million at the domestic box office since its July 4 debut.
The film has outpaced blockbuster-style features like Paramount’s “Mission: Impossible — Dead Reckoning Part One” and Warner Bros.’ “The Flash.”
The anti-sex trafficking thriller has struck a chord with older audiences, many of whom have not been back to theaters since before the Covid pandemic.

Jim Caviezel stars in Angel Studio’s “Sound of Freedom.”
Angel Studios

“Barbenheimer” isn’t the only phenomenon at the July box office.
Over the last four weeks, Angel Studios’ “Sound of Freedom,” an indie film that has drawn the support of former President Donald Trump and other conservatives, has captured nearly $150 million in domestic ticket sales.

The figure may seem small against Hollywood blockbuster performances from Warner Bros.’ “Barbie” and Universal’s “The Super Mario Bros.,” each of which has grossed several hundred million dollars, but it’s a solid theatrical run for a film that only cost $14.5 million to make.
It’s especially impressive considering Paramount’s Tom Cruise vehicle “Mission: Impossible — Dead Reckoning Part One” has tallied less than $140 million since its July 12 release and Warner Bros.’ DC Comics tentpole “The Flash” which barely topped $100 million domestically.
“Sound of Freedom” is also on the heels of Disney’s “Indiana Jones and the Dial of Destiny,” which has generated around $167 million in box-office grosses in the U.S. and Canada.
“Angel Studios deserves a tremendous amount of credit for designing and executing one of the most unexpected indie box office runs in years,” said Shawn Robbins, chief analyst at BoxOffice.com.
“Sound of Freedom,” which opened over the July 4th holiday weekend to the tune of $14.2 million, saw ticket sales exceed its debut during its second and third weekend in theaters, a rarity in Hollywood. Over the last two weekends, ticket sales drops for the movie have been under 40%.

Typically, blockbuster features will see at least 50% drops each week, receiving diminishing returns until the film finishes its run in theaters.
The slow fall for “Sound of Freedom” shows that audiences who may have missed out on the flick when it first opened have heard enough positive word of mouth about it to flock to cinemas weeks later.
In fact, the film initially only ran in around 2,600 theaters and has grown to more than 3,400 over the last few weeks. For comparison, both “Mission: Impossible — Dead Reckoning Part One” and “Indiana Jones and the Dial of Destiny” opened in more than 4,000 locations, according to Comscore data.
“‘Sound of Freedom’ is a summer movie success story that wasn’t even on the radar just a few short weeks ago,” said Paul Dergarabedian, senior media analyst at Comscore. “[It] has become one of the most talked about movies of the summer a film [and its] box office revenue has surpassed that of titles with much bigger stars, brands, and budgets.”
“Sound of Freedom” centers on Tim Ballard (Jim Caviezel), a character inspired by a real-life government agent who quits his job to rescue a young girl from sex traffickers in Colombia.
Part of “Sound of Freedom’s” box-office success has been a campaign from filmmakers to urge moviegoers to buy tickets that can be claimed online for future screenings by those who may not be able to afford them. Angel Studios calls the model “pay it forward” and has sold nearly 14 million of these tickets since the film’s release, according to the studio’s website.
“‘Sound of Freedom’s’ sustained success goes to show that grassroots campaigning still has a sizeable impact in this day and age and that the movie’s core audience remains overlooked and underserved,” Robbins said.
Angel Studios’ post-promotion method isn’t the only unique aspect of its business. The studio crowdfunded $5 million in order to distribute the film after 20th Century Fox, which previously held the rights to it, was bought by the Walt Disney Co. and shelved its release. “Sound of Freedom” wrapped filming in 2018.
The anti-sex trafficking thriller has struck a chord with older audiences, many of whom have not been back to theaters since before the Covid pandemic. It has also become popular in conservative political circles. Trump hosted a private screening of the film at his New Jersey-based golf club last month.
Also in attendance were Steve Bannon, Trump’s former chief strategist; Kari Lake, a former gubernatorial candidate from Arizona who backed Trump’s claims about election fraud during the last presidential election; and Jack Posobiec, an activist and TV correspondent who promoted the debunked claim that Democrats were using a pizzeria in Washington for a child sex ring.
House Speaker Kevin McCarthy, R-Calif., also held a screening of the film last week for members of Congress on both sides of the aisle.
“Often movies come along that fill a void in the marketplace,” Dergarabedian said, echoing Robbin’s comments about underserved theatrical audiences. “‘Sound of Freedom’ benefitted not only from this but also by providing a non-typical summer style movie experience.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

Pfizer on Tuesday reported second-quarter adjusted earnings that topped Wall Street’s expectations, but posted revenue that came in under estimates due to a steep drop in Covid product sales.
Pfizer is in a transition period as it pivots away from its blockbuster coronavirus vaccine and Covid antiviral drug Paxlovid while the world emerges from the pandemic.
The New York-based company will hold a conference call at 10 a.m. ET on Tuesday. 

Pavlo Gonchar | Lightrocket | Getty Images

Pfizer on Tuesday reported second-quarter adjusted earnings that topped Wall Street’s expectations, but posted revenue that fell short of estimates as Covid product sales plunged.
Pfizer reported second-quarter sales of $12.73 billion, down 54% from the same period a year ago.

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The company’s Covid vaccine raked in $1.49 billion in sales, down 83% from the year-ago quarter. Pfizer’s Covid antiviral pill Paxlovid posted $143 million in revenue, a drop of 98%.
Together, the products pulled in $1.6 billion in revenue for the quarter. That compares with roughly $17 billion in sales during the same period a year ago.
The decline isn’t a surprise. Pfizer and rival drugmakers like Moderna have seen a steep drop in Covid-related sales this year as the world emerges from the pandemic and relies less on blockbuster vaccines and treatments that help protect against the virus.
Here’s how Pfizer results compared with Wall Street expectations, based on a survey of analysts by Refinitiv:

Earnings per share: 67 cents per share adjusted, vs. 57 cents per share expected
Revenue: $12.73 billion, vs. $13.27 billion expected

Pfizer booked net income of $2.33 billion, or 41 cents per share. That fell from $9.91 billion, or $1.73 per share, during the same period a year ago. 

Excluding certain items, the company’s earnings per share were 67 cents per share for the quarter. 
Looking ahead, the New York-based company narrowed its 2023 sales forecast to $67 billion to $70 billion, from a previous forecast of $67 billion to $71 billion. 
Pfizer reiterated its full-year adjusted earnings outlook of $3.25 to $3.45 per share.
The company expects Covid-related sales to decline for the year. Pfizer reaffirmed its forecast of $13.5 billion in Covid vaccine sales in 2023 and $8 billion in revenue for Paxlovid.
Pfizer noted that guidance for the products is based on both existing supply contracts with governments and sales from the commercial market in the U.S. The company will start selling Covid-related products directly to health-care providers this fall. 
Pfizer’s stock price fell less than 1% in premarket trading. The company’s shares have dropped nearly 30% this year, putting Pfizer’s market value at roughly $203 billion.

Other drug products

Pfizer is in a transition period as it navigates a post-pandemic world. The company is pinning its hopes on mergers and acquisitions and a record pipeline to pivot to new areas of growth. 
Excluding Covid products, drugs from recently acquired companies largely fueled revenue. 
Those sales include Biohaven Pharmaceuticals migraine drug Nurtec ODT and Global Blood Therapeutics’ sickle cell disease treatment Oxbryta, which drew in $247 million and $77 million, respectively.
The company said revenue was also driven by strong sales of Vyndaqel drugs, which are used to treat a certain type of cardiomyopathy, a disease of the heart muscle. Those drugs booked $782 million in sales, up 42% from the second quarter of 2022.
Other drugs weighed on revenue, however. 
Inflectra, a monoclonal antibody used to treat a range of inflammatory autoimmune diseases, posted $74 million in sales. That total fell 46% from the same period a year ago. 
Pfizer’s Ibrance, which treats a certain type of breast cancer, posted $1.24 billion in sales, down 6% from a year ago. 

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Investors are eager for executives to provide updates on Pfizer’s several near-term drug launches, which CEO Albert Bourla said in May will help grow non-Covid revenues “at a faster rate” during the second half of the year.
That includes Pfizer’s vaccine for respiratory syncytial virus and its updated Covid shot – both of which are slated to roll out during the third quarter.
Executives are also likely to be asked about the company’s $43 billion acquisition of cancer therapy maker Seagen – a deal Pfizer believes could contribute more than $10 billion in risk-adjusted sales by 2030. 
The U.S. Federal Trade Commission asked Pfizer and Seagen for more information on their proposed merger during the second quarter. The move came as the agency cracks down on similar deals in the pharmaceutical industry. 
Executives will also likely to address the tornado that hit Pfizer’s major plant in North Carolina after the company told hospitals last month that more than 30 drugs may see new supply disruptions due to the damage.
Pfizer is scheduled to hold a conference call at 10 a.m. ET on Tuesday.  More

Bed Bath & Beyond’s stores have officially shuttered but customers can still shop the brand through its relaunched website and app.
Overstock acquired Bed Bath’s intellectual property and ditched its own name in a bid to boost sales, acquire new customers and cement itself as a go-to home goods retailer.
Customers who download and shop the new app will receive a 25% off coupon.

Courtesy: BB&B

Shoppers still reeling from the loss of Bed Bath & Beyond can once again shop through its new website and app beginning on Tuesday.
Owner Overstock is betting the once-beloved brand can attract new customers and reverse its ongoing sales slump. 

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Bed Bath & Beyond’s brick-and-mortar stores closed after the company wrapped up liquidation sales on Sunday following its April bankruptcy filing. But the retailer will live on online after longtime rival Overstock won its intellectual property at auction in June. 
The e-commerce company, which has long felt its name was a detriment to its business, will instead merge its business under the Bed Bath & Beyond domain.
The newly launched website and app will feature the sorts of products that Bed Bath’s customers have come to love and expect, but it’ll also feature a wide assortment of goods in its revamped “beyond” category, which includes merchandise Overstock was already selling. It’ll also feature one of Bed Bath’s most beloved relics: plenty of coupons.

Courtesy: BB&B

“We have added over 600,000 new products since the deal was first announced in early June, most of them in the bedding, bath and kitchen area. But, historically, we’ve been strong in patio furniture, area rugs, mattresses, living room and dining room furniture,” Overstock CEO Jonathan Johnson told CNBC. “So the customer can expect a breadth and depth of products they haven’t seen before.” 

The strategy behind the rebrand

Overstock acquired Bed Bath & Beyond because of the retailer’s strong branding and cult-like following in the hopes it could revive its top and bottom lines.

In the quarter ended June 30, Overstock reported a 20% drop in sales compared to the year-ago period, a nearly 30% drop in active customers and slowdowns in orders delivered, average order values and the number of orders per active customer. 
Johnson attributed the slowdowns in part to overall softness in the home goods category and the economy as a whole, but he pointed to Overstock’s name as a factor, too.
“Rebranding to a name that is synonymous with home, rather than pushing, slogging forward with a name that was mistakenly confused with liquidation, something we haven’t done in two decades, will help us cut through some of the difficulty of the current economy,” said Johnson. 
“We’re self aware enough to know that nobody, not even my children, would put ‘registered at Overstock.com’ on their wedding announcement, baby announcements, but they will put ‘registered at Bed Bath & Beyond’ on both those announcements. So it’s a name that people like, they’re proud of, that they want to be associated with.” 
The rebranding also helps Overstock with business relationships, Johnson said. Certain vendors that Overstock previously worked with didn’t allow them access to their entire product category because they didn’t want that merchandise associated with Overstock. Now that the company has rebranded, those vendors are willing to expand their offerings, which helps Overstock provide a wider range of desirable merchandise, said Johnson. 

Courtesy: BB&B

The company plans to phase out the Overstock brand “over time,” it said in a news release.  
The chief executive was reluctant to share any specific guidance on how the acquisition will affect sales in the quarters and years ahead, because “it’s still such an unknown.” But he noted Overstock’s launch of Bed Bath & Beyond in Canada has so far been positive. 
Direct traffic to the site and conversions are both up, along with returns on ad spend for performance marketing, said Johnson. 
“The Canadian customer is eager to buy from Bed Bath & Beyond. They’re glad we’ve preserved the name. We expect the same in the U.S.,” said Johnson. 
With Overstock’s acquisition, the company acquired a customer base that’s about four times larger than its current base of about 4.6 million people. With that comes a fresh crop of customers that the company has data on, and can now market to. 

Leaning in to an old strategy

To gauge the success of the acquisition and rebrand over the next 12 months, Johnson said he will be laser-focused on significantly growing Overstock’s active customer base and their order frequency. 
To get there, he’ll be leaning in to a strategy that has proven successful for both Overstock and Bed Bath & Beyond in the past: attractive deals and coupons. 
To celebrate the launch, anyone who downloads and shops on the new app will receive a 25% off welcome coupon and those who are part of Overstock’s current loyalty program, Club O, will receive a 20% off coupon, the company said. 
Shoppers currently enrolled in Bed Bath & Beyond’s loyalty program will receive a reinstatement of up to $50 in unused loyalty reward points, exclusive coupons and free membership to the revamped Welcome Rewards program, which costs $19.95 a year. More