Shares of Overstock.com Inc., the Salt Lake City-based online discount retailer, climbed to the highest level since July 2008 on the Nasdaq after first-quarter sales rose 42 percent.

Sales climbed to $264.3 million from $185.7 million a year earlier, the company said today in a statement. Two analysts estimated $222.5 million on average.

Overstock sells products, from jewelry to DVDs, buying excess inventory from other companies and selling it at lower prices.

The shares advanced $4.15, or 21 percent, to $23.88 in Nasdaq Stock Market trading, after touching $26.50. Shares have gained 76 percent this year.

The company reported net income of $3.73 million for the three months ended March 31, according to the statement. That compared with a $3.94 million loss a year earlier.

Overstock.com will conduct a conference call at 7 a.m. Thursday to discuss the quarter's results.