Categories Consumer, Earnings

Blue Apron (APRN) shifts to strategic alternatives after wider-than-expected Q4 loss

Blue Apron Holdings Inc. (NYSE: APRN) reported a narrower loss in the fourth quarter of 2019 helped by lower costs and expenses. However, the bottom line was wider than the analysts’ expectations. The board announced planned closure of Arlington, Texas facility as well as evaluation of a range of strategic alternatives.

Net loss improved by 8% year-over-year to $1.66 per share, which is wider than the analysts’ expectations of $1.60 per share. Net revenue fell by 33% to $94.3 million, reflecting the company’s deliberate reduction in marketing spend while focusing on marketing efficiency and targeting high-affinity consumers.

Blue Apron Holdings (APRN) Q4 2019 earnings review

During the quarter, orders dropped 33% while the number of customers decreased 37%. However, the average order value improved to $58.14 from $58.12 last year. Average revenue per customer also improved to $269 from $252 in the year-ago period.

The company announced the planned closure of its Arlington, Texas facility and consolidation of production volume into its New Jersey and California facilities. Blue Apron expects to incur about $1.5 million in cash restructuring charges, including about $0.8 million of employee-related costs and about $0.7 million of other exit costs.

Also, the company expects to incur non-cash asset-related charges in the range of $5-8 million. The majority of the charges will be incurred in the first half of 2020. The company expects this action to generate annual savings in fixed costs of about $8 million beginning in the second quarter of 2020.

Read: Walmart Q4 earnings review

Blue Apron’s board is evaluating a broad range of strategic alternatives to maximize shareholder value. This could include a strategic business combination, a capital raise, a transaction that results in private ownership or sale of the company or its assets, or any combination. This along with cost optimization initiatives will provide additional liquidity for supporting the execution of growth strategy and continued investments in the business.

Also Read:  ADP Q4 earnings fall 59% hurt by pre-tax charges

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

A look at factors that make Snap-on (SNA) a compelling investment option

Snap-on Incorporated (NYSE: SNA), the century-old company that makes high-end tools for the automotive industry, is unlikely to have a smooth ride in the current quarter, given the deepening turmoil

BlackBerry (BB) Q4 2020 earnings call highlights; blames COVID-19 for not providing fiscal 2021 outlook

Immediately after BlackBerry's (NYSE: BB) fourth-quarter 2020 results came out last evening, its stock traded in the green for quite some time in the after-hours. However, when the company announced

Why HP (HPQ) is better off without Xerox (XRX)

Xerox Corp. (NYSE: XRX) has dropped its takeover bid for HP Inc. (NYSE: HPQ) citing difficulties created by the coronavirus outbreak. This could be a relief for HP since the

Top