Shares in Blue Apron fall after it posts wider than expected loss in 2Q

Blue Apron Holdings Inc. (NYSE:APRN) was under pressure Thursday in premarket after the company posted a wider than expected loss for the second quarter as revenue fell short of estimates.

Shares in the New York-based meal-kit provider fell 8.71% to US$2.20 in premarket trade.

For the quarter ended June 2018, the company said it had a net loss of US$32.8mln, or US$0.17 a share, compared with a loss of US$31.6mln, or US$0.47 a share in the year-earlier period. The consensus estimate called for a loss per share of US$0.17 and revenue of US$188mln.

Revenue fell sharply by 25% to US$179.6mln.

“With fulfillment center operations strengthening, we are increasing focus on the priorities we expect will propel revenue performance and return the business to a growth trajectory, including evolving and expanding our product portfolio, enhancing our overall customer experience, and launching our retail and on-demand offerings,” said Blue apron CEO Brad Dickerson.

The CEO explained that revenue was impacted by the company’s decision to prioritize “operational stability and build a foundation for growth”.

The compnay said number of customers fell 24% from a year ago, while average revenue per customer slipped to US$250 from US$251.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors