Shares Plunge 17% After Unappetizing Quarter — Blue Apron

Blue Apron earnings: First report caps tumultuous post-IPO period

This is Blue Apron's first earnings report as a public company. Having failed to raise as much as expected in its IPO, the company cut deep into the marketing budget. The company's losses per share for the first half of 2017 are $1.25. Dillard " s second-quarter net swung to a loss of $17 million.

Investors didn't like what they heard and sent the shares down 15 percent to $5.28 at 10:21 a.m.in NY.

Further slashes to marketing spending could continue to lower Blue Apron's customer base.

Shares of Blue Apron plummeted Thursday after the company said it was encountering unexpected costs tied to the start up of a new plant in New Jersey.

Blue Apron went public on the New York Stock Exchange in late June, but its shares have since languished, falling almost 40 percent amid concerns over e-commerce giant Amazon.com Inc's recent moves in the grocery and meal-kit segments. That resulted in a net decrease in the total number of customers and orders. Blue Apron posted revenue of $795.4 million for 2016, more than double its level the year before.


The decline shows that customers are dropping the service and Blue Apron isn't able to replace them and grow without spending heavily.

If competition within the sector wasn't enough, Blue Apron's stock has also been hit hard by investors anxious about the fallout from Amazon's $13.7 billion acquisition of Whole Foods Market and the internet giant's test of its own meal kit. It also comes in above analysts' revenue estimate of $235.81 million for the second quarter of the year. This hurt APRN stock by coming in below Wall Street's losses per share estimate of 30 cents for the quarter.

The meal-kit delivery company said it plans to close this location in October and has given all of its employees the option to transfer to the new facility located in Linden, New Jersey, about 15 miles from the old location.

Another blow to its stock came after the company said it would belosing more than a third of its workforce at a Jersey City, New Jersey, facility.

Last month Blue Apron said that one of its co-founders, Matthew Wadiak was stepping down from his role as chief operating officer and would become a senior adviser to the company. The management shakeup accompanied changes to the reporting structure for two other executives.

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