Blue Apron says it would sacrifice revenue growth in 2019; shares tumble
NEW YORK (Reuters) - Blue Apron Holdings Inc (APRN.N) said on Wednesday it would sacrifice overall revenue growth and cut marketing expenses in 2019, sending shares into volatile decline.
The forecast comes a day after the meal-kit delivery company reported a steep decline in net revenue for the third quarter, down 28.4 percent at $150.6 million, missing average analyst forecast of $160.3 million, according to Refinitiv data.
Blue Apron also announced late Tuesday plans to cut its workforce by 4 percent.
The shares fell 10 percent to $1.10 in volatile trade on Wednesday after rising as high as $1.17.
The New York-based company has been struggling to boost sales as it faces intense competition not only from peers like HelloFresh SE (HFGG.DE), but also from grocers selling their own ready-to-eat meals. The entry of Amazon.com Inc (AMZN.O) into grocery service and meal kits business has added to pressure.
Reporting by Angela Moon; Editing by Chizu Nomiyama
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |