Overstock.com (OSTK) - Get Overstock.com, Inc. Report announced Monday it named interim CEO Jonathan Johnson as its permanent chief, about four weeks after former CEO Patrick Byrne stepped down from the job, but the stock was tumbling after the company revised its guidance lower.
Johnson has been serving as the interim CEO since Aug. 22.
"Jonathan is a strong leader with a steady hand," said Allison Abraham, chairwoman of Overstock's board. "He is the best choice to lead Overstock. He has the right experience in both our retail and blockchain businesses, and the board has confidence in his ability to deliver value to our shareholders."
Overstock shares were dropping double digits Monday after the company said that its previous third-quarter EBITDA guidance of $17.5 million was ambitious and its actual third-quarter results to date are break even, below company expectations.
The company still expects modest positive EBITDA in the fourth quarter.
The company also named Robert Hughes, its former chief financial officer, as its new interim finance chief after former CFO Greg Iverson resigned, effective Sept. 17.
"Rob was the company's SVP of finance and risk management for five years and VP and Controller for four years. He is intimately familiar with Overstock's businesses and financial systems," said Overstock CEO Jonathan Johnson.
Overstock shares declined 13.5% to $12.97 in trading.