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MURRAY, Utah - Beyond, Inc. (NYSE:BYON), the parent company of multiple retail brands, has announced the sale of a majority stake in its Zulily brand to Lyons Trading Company for $5 million. Beyond retains a 25% interest in the online retailer, as part of a strategic move to concentrate on the profitability of its primary businesses, which include Bed Bath & Beyond, Overstock, and the recently acquired buybuy BABY.
The transaction, which values Zulily at approximately $6.7 million, allows Beyond to realize a return on investment and refocus resources on its core brands. Adrianne Lee, Beyond’s President and CFO, emphasized the improvement in the performance of Bed Bath & Beyond and Overstock.com, citing margin growth, enhanced site experience, and vendor consolidation as key achievements.
Alex Thomas, COO of Beyond, reiterated the company’s dedication to optimizing resources and delivering profits for its home and family-centric brands. The sale is part of Beyond’s larger strategy to prioritize its most significant growth opportunities. The company maintains a positive balance sheet position, holding more cash than debt, though analysts project a 9% revenue decline for the current year.
Beyond expects the sale’s impact on its adjusted earnings per share to be immaterial on a full-year basis. The company continues to engage in e-commerce, leveraging its vast data cooperative to enhance the potential of customers’ homes through its remaining brands.
This divestiture is aligned with Beyond’s forward-looking statements, which project future business results and strategies, including the implications of the Zulily sale. These statements, as customary, are subject to factors that could affect the accuracy of business outcomes.
The information provided is based on a press release statement from Beyond, Inc.
In other recent news, Beyond Inc. reported its fourth-quarter 2024 financial results, revealing that net revenue fell short of both consensus estimates and the company’s own projections. Despite this shortfall, the company exceeded expectations in gross margin and adjusted EBITDA, indicating ongoing efforts to improve profitability. In response to these results, Maxim Group adjusted Beyond Inc.’s price target from $26 to $16 but maintained a Buy rating, suggesting continued optimism about the company’s future prospects. Meanwhile, Needham analysts downgraded Beyond Inc. from Buy to Hold due to concerns over revised revenue projections and extended timelines for achieving adjusted EBITDA positivity, now anticipated by 2027.
Significant leadership changes have also taken place at Beyond Inc., with Marcus Lemonis appointed as Principal Executive Officer and Adrianne Lee as President & CFO. These appointments are part of a broader strategy focused on returning the company to profitability, alongside a commitment to $15 million in fixed cost reductions. Additionally, Jefferies reduced Beyond Inc.’s price target to $6.50 while maintaining a Hold rating, noting the company’s substantial cash reserves as a factor in their decision.
Beyond Inc. also announced the addition of former Revlon CEO Debra Perelman to its Board of Directors, aiming to leverage her extensive experience in digital and consumer sectors. These developments reflect Beyond Inc.’s strategic realignment and cost management efforts as it navigates financial challenges and seeks to enhance shareholder value.
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