Blue Apron’s stock is down 15% right now. Bloomberg on why:
In its first earnings report as a public company, Blue Apron managed to beat analysts’ estimates on revenue, but that was the only good news. Having failed to raise as much as expected in its IPO, the company cut deep into the marketing budget. The result: it lost customers during the quarter. In a conference call, Blue Apron executives warned that the second half would be even worse than the first as the company spends heavily on automating its fulfillment centers. That in turn will push back plans to expand menu offerings. […]
Sales in the second half will be $380 to $400 million — implying that Blue Apron won’t reach more than a $1 billion this year, a milestone many had expected. A new facility in Linden, New Jersey, has been slow to get up to speed, and training workers on new processes and more automated technology has taken longer than expected, he said.
Analysts and journalists on Twitter looked baffled at Blue Apron’s numbers and the company’s justifications for them: