Beyond Inc. net revenue decreased year over year in its fiscal Q1, which ended March 31, but the retailer said it expects to transition from its restructuring phase into revenue growth in less than 60 days.
“That doesn’t mean we think we’re going to make a bunch of money in 60 days,” executive chairman and principal executive officer Marcus Lemonis told investors on the retailer’s Q1 earnings call.
Rather, he said, it means that in 60 days, Beyond “will have done what we needed to do with our SKU count.”
“We want to move away from cutting, cutting, cutting,” he added. “You don’t cut your way to a profit. You sell your way to a profit.”
Beyond Inc. ranks No. 68 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales. Prior to the Q1 earnings announcement, Digital Commerce 360 projected Beyond’s total ecommerce sales in 2025 will reach $1.34 billion.
Ownership changes at Beyond
Overstock Inc. changed its corporate name to Beyond Inc. in November 2023, shortly after acquiring the Bed Bath & Beyond brand and its associated intellectual property in June that year.
Now, Beyond owns retail brands Bed Bath & Beyond, Overstock and Buy Buy Baby, and it has invested in Kirkland’s. It also owns a blockchain asset portfolio. In March, Beyond sold a major stake in Zulily to Lyons Trading Company.
Executive chairman and principal executive officer Marcus Lemonis told investors on the retailer’s Q1 earnings call that Q1 felt like the first quarter of a brand new business.
“As we move into 2025, we feel like we have restructured and rebuilt and reimagined an entirely new company,” Lemonis told investors.
Lemonis cited interest rates, mortgage rates and home sales in March in saying the retailer is “dealing with a terrible, terrible economy today.”
“Our belief as a management team is that if we could make it, we could survive, we could find our way to the neighborhood of profitability in this environment, then what we were really setting ourselves up for is the ability to be so nimble that no matter how tough the economy could get, we could survive and we could be very much prepared to participate,” Lemonis said.
That includes dealing with tariffs.
How Beyond is addressing tariffs
“Tariffs are always the elephant in the room these days and any company that tells you that they know exactly what’s going to happen has absolutely no idea what’s happening in their own business if they say that,” Lemonis said. “The tone-deaf nature in which people are making prognostications about what’s going to happen is something that this company will not do.”
Across Beyond’s websites, consumers can find products built in the U.S., even if it’s just parts and pieces, he said.
“We’re also not naive to think that everything in the USA can satisfy all the categories,” he added. “It cannot. And so we’re working with a number of companies who have, in the last four years or five years, since the last tariff scare, have adjusted their own sourcing.”
Lemonis said partners have approached Beyond asking for price increases.
“I know, they know, you know, that none of them have actually experienced those tariffs,” Lemonis said. “Those are anticipatory price hikes.”
Website and operational changes at Beyond
Beyond isn’t done with transforming its websites, Lemonis said. He said Beyond is working daily to improve site experience and add new technology. They’re also finding new third-party vendors “to lay over our websites and plug into our websites.” Lemonis said Beyond has fully integrated the software provider Salesforce.
The retailer has “cut almost 8 million SKUs” off the Bed Bath & Beyond site, he said.
“I wouldn’t have imagined years ago that Bed Bath & Beyond would become a very large furniture retailer — patio, rug, furniture,” Lemonis said. “And it’s changed the name of the business. We’ve had to learn how the taxonomy works and how to make it more efficient while never forgetting the core items that Bed Bath & Beyond built its brand on: kitchen, bed, bath.”
He said Beyond wants to focus on:
- Building technology
- Investing in customer experience
- Getting more out of its blockchain assets
- Acquiring intellectual property in the family and home space
“Selling online is a very complicated business and few do it very well,” Lemonis said. “We want to be one of those few. But we also know that we have to lower our cost of marketing. We have to increase the size of our retained database and we have to figure out how to build basket size over time.”
Beyond Q1 revenue
In Q1, Beyond revenue decreased 39.4% year over year, to $232 million from $383 million.
The retailer’s gross margin grew 25.1% in Q1. It attributed that to “disciplined pricing and merchandising actions” and improved freight economics. In the last 12 months, Beyond shared in its Q1 earnings presentation, the retailer delivered 6.4 million orders. That’s down 24.9%, or 2.1 million orders, since Q1 of its fiscal 2024.
At the same time, it grew its average order value 12.0% (or $21) to $194.
Also in the last 12 months, Beyond had 4.8 million active customers. That’s a 20.9% drop (or 1.3 million fewer customers) compared to Q1 of fiscal 2024. And among those customers, order frequency dropped 5.1% to 1.34 times.
“While the previously disclosed decision to eliminate non-contributory SKUs and vendors led to lower revenue, we are steadfast in building a more stable foundation for profitability and growth,” said Adrianne Lee, Beyond president and chief financial officer, in a statement. “The sequential improvements we’ve seen — particularly in gross margin expansion and fixed cost reductions — underscore the intensity I expect in restoring the financial discipline critical to building a profitable growing business.”
Additionally, Beyond reduced its sales and marketing expenses by $37 million year over year in Q1, Lee told investors on the Q1 earnings call.
“This decline was mainly driven by the intentional reduction of less efficient spend while improving channels that are more contributory. We know we need to balance our efforts between acquisition and retention,” she said on the call.
Beyond ended Q1 with $166 million in cash, cash equivalents, restricted cash and inventory balance, she added.
What’s next for Beyond?
“With the majority of our restructuring behind us, our teams are organized to be agile and laser focused on delivering on our key operational guide posts,” Lee said.
Lemonis said Beyond has decided to open at least four Overstock stores. It plans to place them where vendors and customers can ship or return product efficiently, which he said will improve financial performance primarily through margin improvement.
The retailer will also launch “in a very, very low CapEx way,” Bed Bath & Beyond Home. He said that the retailer will be “very different” from the traditional Bed Bath & Beyond stores that focus on bed, bath, kitchen and small accessories.
He compared the new-look Bed Bath & Beyond to Kirkland’s, which he described as well-merchandised and well-curated. The assortment from Bed Bath & Beyond and Overstock into those new-look stores will “level the playing field” in the off-price, “non-dumpster-looking environment that we believe customers are looking for,” he said. “A lot of value for a very low price. That is our customer base.”
Additionally, Beyond has authorized the opening of a single Buy Buy Baby store. Less than a year ago — before Beyond had acquired it in February 2025 — Buy Buy Baby operated 11 physical stores. All of them have closed since. When Buy Buy Baby filed for bankruptcy in 2023, it had about 120 stores across the U.S.
Furthermore, Lemonis said Beyond has eliminated its distribution center. The facility was a $2 million fixed cost on an annualized basis, he said. Beyond has moved to “an accordion-style 3PL” (third-party logistics provider), which means it pays for what it uses.
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