Investing.com - Blue Apron Holdings Inc (NYSE:APRN) shares tanked on Thursday with investors reacting to the company’s first earnings release as a publicly-traded company as well as news from the company of delays at its new factory
Blue Apron’s shares inched higher in the pre-market session due to the company besting second-quarter revenue expectations, but investors positivity soon faded as they turned their focus to the company’s wider than expected loss and downgraded future expectations.
Blue Apron lost $31.6 million (47 cents per share) in the recent quarter, a much steeper loss than the 27 cents per share analysts forecast. Revenue was positive, increasing by over $37 million to $238.1 million. This surpassed analysts' expectations for $235.8 million.
The company added that its customer count fell 9% versus the comparable quarter, but average revenue per customer increased to $251 from $236 in the previous quarter, but below the $264 in the year-over-year quarter.
Blue Apron also cut its guidance for the second half saying that delays have “changed our strategic approach in managing the business for the remainder of 2017". Net revenue should fall in the range of $380 million to $400 million and the company will have a net loss of $121 million to $128 million. The company is facing delays in shifting its operations from a factory in Jersey City, New Jersey to Linden, New Jersey. The shift is supposed to make the company more efficient; therefore its delay is impacting business.
Blue Apron's shares were down over 17% Thursday afternoon and they fell to their lowest price point since the made their trading debut.