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Overstock 2Q profit grows more than sevenfold

SALT LAKE CITY (AP) -- Online discount website operator Overstock.com Inc. said Thursday that its second-quarter net income grew more than sevenfold as the average order size improved.

The company's stock jumped to a multiyear high.

Overstock.com Inc. sells furniture, electronics, clothing, jewelry and other items on its namesake site. It also owns Worldstock.com, a fair trade website that sells artisan-crafted products from around the world.

The Salt Lake City company earned $3.7 million, or 15 cents per share, for the three months ended June 30. That's up sharply from $470,000, or 2 cents per share, a year earlier.

Revenue rose 22 percent to $293.2 million from $239.5 million as the average order size increased 21 percent to $167 from $138.

Overstock has worked to move its business into more higher-margin goods, like home and garden products. It has also kept an eye on expenses, lowering warehousing costs during the quarter.

Its stock soared $6.40, or 22 percent, to $34.96 in afternoon trading. Earlier in the day, the shares touched $35.34, their highest level since May 2005.