Wednesday, March 1, 2006
Overstock Restates Results
Salt Lake City, Utah-based Overstock.com, an online retailer of closeout and excess inventory, said yesterday that the company is restating its results for fiscal years 2002, 2003, and 2004. The firm reported yesterday that it is amending the returns relating to the accounting for freight costs it incurred to deliver inventory to its warehouses. The firm said that the correction will decrease the amount of net loss reported each year, and will increase its inventory by approximately $3.5M for the quarter ending September 30, 2005. Overstock said that in addition to the financial statement, the company acknowledged the implication of the misstatement on the effectiveness of the company's internal controls, and that there was a "material weakness" in its internal controls for 2005 and 2004.