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CFO resigns; Company revises guidance for Retail business
|Jonathan Johnson was named CEO of Overstock in addition to his role as president of Medic Ventures||Robert Hughes was named acting CFO of Overstock in addition to his role as president of Medici Land Governance|
SALT LAKE CITY,
Board Appoints Jonathan Johnson as CEO
The Board of Directors has appointed Jonathan Johnson Chief Executive Officer. Johnson had been serving as interim CEO since
“Jonathan is a strong leader with a steady hand,” said Allison Abraham, Chairwoman of Overstock’s Board of Directors. “He is the best choice to lead Overstock. He has the right experience in both our retail and blockchain businesses, and the Board has confidence in his ability to deliver value to our shareholders.”
“Overstock has two unique businesses,” said Johnson. “I have run both, and I know how to unlock the value in each. I’m confident we can rapidly return our retail business to profitable growth. Our transformative blockchain businesses continue to lead their respective industries by getting real products into production.”
Robert Hughes Appointed Acting CFO
Overstock’s Chief Financial Officer Greg Iverson has resigned, effective
“Rob was the company’s SVP of finance and risk management for five years and VP and Controller for four years. He is intimately familiar with Overstock’s businesses and financial systems,” said Overstock CEO Jonathan Johnson. “Under his guidance, Overstock had steady and positive financial results and reporting. I’ve worked closely with Rob for many years and he is a great person to oversee our finance department while we look for a permanent CFO. I appreciate his willingness to step in during the transition. Rob will ensure the company does not miss a beat.”
“I know the finance team well and am confident that they will assist me in making this a positive and smooth transition while the company searches for a new CFO,” said Hughes.
Hughes will continue to serve in his current role as president of Medici Land Governance. Medici Land Governance, a subsidiary of
Updated Retail Guidance
On its last earnings call, the company gave financial guidance of expected
There are five components driving the company’s revised retail guidance:
- Increased costs from tariffs on goods manufactured in China have negatively impacted revenues.
- The company’s D&O insurance premiums will significantly increase.
- Waning consumer confidence has negatively impacted conversion on high dollar purchases industry wide.
- In-home delivery vendor Watkins’ recent bankruptcy and the delayed integration of a new freight carrier have combined to significantly increase Q3 freight costs.
- Increased search traffic has taken longer than expected to translate into purchasing customers.
“In spite of these recent headwinds, we’re confident in our retail strategy,” said Dave Nielsen, president of Overstock Retail. “We see positive leading indicators, including increased organic traffic, and we believe we will deliver profitable and sustainable growth for our retail business through our ongoing MarTech and Supply Chain initiatives.”
Former CEO Divests His Overstock Common Stock
Patrick Byrne filed a Form 4 on
About Jonathan Johnson
Jonathan Johnson joined Overstock in 2002 as the company’s general counsel and has held various business and legal-related positions within the company, including five years as president, and later, as the acting CEO and executive vice chairman of the boards. He is also a member of Overstock.com's board of directors and served as the chairman of Overstock's board of directors from 2014 to 2017. He continues to serve as president of
Prior to joining Overstock, Johnson was with
Johnson received a Bachelor's Degree in Japanese from
About Robert Hughes
Robert Hughes is the President of Medici Land Governance (MLG), which is applying blockchain and other technologies to improve property registry systems in the developing world.
Before moving to MLG, Hughes was the SVP, Finance and Risk Management, Overstock.com for five years and VP and Controller for four years, beginning in late 2008.
In addition to his roles at Overstock, Hughes served as CFO and Chief of Staff of
Hughes received a Bachelor's Degree in
Overstock.com, Inc Common Shares (NASDAQ:OSTK) / Digital Voting Series A-1 Preferred Stock (Medici Ventures’ tZERO platform:OSTKO) / Series B Preferred (OTCQX:OSTBP) is an online retailer and technology company based in Salt Lake City, Utah. Its leading e-commerce website sells a broad range of new products at low prices, including furniture, décor, rugs, bedding, home improvement, and more. The online shopping site, which is visited by nearly 40 million customers a month, also features a marketplace providing customers access to millions of products from third-party sellers. Overstock was the first major retailer to accept cryptocurrency in 2014, and in the same year founded
O, Overstock.com, O.com, Club O, Main Street Revolution, and Worldstock are registered trademarks of Overstock.com, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to our expectations provided in our updated retail guidance. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Form 10-Q for the quarter ended
SOURCE: Overstock.com, Inc.
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