Blue Apron Shares Drop as Much as 33% After Posting Results

Meal kit delivery company Blue Apron reported results for the three months ended March 31st this week and revealed a steep decline in quarterly sales.

Shares of the stock dropped as much as 33% on Wednesday after Wall Street digested the numbers.

Orders during the first-quarter fell 29% from a year earlier, while the total number of customers declined to 376,000 from 550,000.

Net revenue fell 28.2% to $101.9 million in the quarter, while net loss widened to $20.2 million, or $1.51 per share, from $5.3 million, or 41 cents per share, a year earlier, mainly due to higher expenses and the closure of certain fulfillment centers.

Despite the company seeing a boost in orders from Americans confined to their homes amid coronavirus-led lockdowns, most of the benefit from this demand will be reflected in the current quarter.

“Even as restrictions on consumer behavior begin to ease, we expect that there will be a shift to new economic and social norms, reflecting the changes in cooking and eating habits developed during the weeks or months consumers spend at home, and these will persist for some time,” said Chief Executive Officer Linda Findley Kozlowski.

“We expect that our Q2 results will begin to reflect this increased demand.”
Blue Apron expects second-quarter revenue to record a high single-digit percentage growth to about $130 million.

Disclaimer: We have no position in Blue Apron Holdings Inc. (NYSE: APRN) and have not been compensated for this article.