Feisty Overstock CEO sees brighter future

By Adam Tanner

SAN FRANCISCO (Reuters) - Whether he's waging a financial lawsuit or seeing shares of his e-commerce site surge and fall, Overstock.com (OSTK.O: Quote, Profile, Research) chief Patrick Byrne refuses to be fazed by his turbulent relationship with Wall Street.

"My score card is completely internal," the Overstock chairman and chief executive told Reuters on Thursday. "You do the right thing to do the right thing."

The site, selling excess inventory of clothing, accessories and furniture, is popular because of its discount prices. But it has lost $240 million since Byrne launched the company in 1999, he said. Between $60 million and $70 million of that bill is shared by Byrne with family and friends, he said.

Now he envisions an end to the red ink this year and hopes the online retailer will realize a net profit of $10 million in 2008.

"If we have a good year, I think we can make 1 percent (profit margin)," he said, estimating total sales of $1 billion. "That's different from saying I'm promising to make $10 million this year. But it's definitely possible."

With all the uncertainty, Overstock shares have fluctuated between a high of $39.39 and a low of $8.61 in the past year.

The company went through an especially tough patch in the past two years, but last month it reported a much narrower-than-expected quarterly loss, helped by higher sales and a bigger gross margin.

"2006 was the worst. "2007 was pulling out of it," Byrne said. "The wolf is getting further and further from the door."