Overstock.com Inc. said Thursday that third-quarter net income rose 31 percent, but shares of the online discount retailer slid following a strong run-up this year.
Shares of Overstock.com fell $3.50, to $ 25.83 at the closing bell. The stock is up 88 percent so far this year.
The Salt Lake City-based company said its net income rose to $3.5 million, or 14 cents per share, from $2.7 million, or 11 cents per share.
Revenue rose 18 percent to $301.4 million from $255.4 million, reflecting a 16 percent increase in average order size and a 2 percent increase in orders.
Sales and marketing costs rose 51 percent year over year. Overstock said that a change in Google Inc.’s search engine algorithms during the quarter pushed its ranking on search results lower on the page, making it harder for people to find. Overstock, which sells furniture, rugs, bedding, electronics, clothing and other items, said that it had to spend more money on sponsored ads in order to place its website higher on some of Google’s search pages.
Late Wednesday, rival online retailer eBay posted a weaker-than-expected profit and revenue outlook for the current quarter through December, citing uncertainty about the U.S. government after a shutdown. Ebay shares were down more than 4 percent to $51.19 while the broader markets ticked higher.