The company also said it is looking at “cost optimization initiatives,” although its announcement contained no specifics. Will any of this work? In the statement issued after Tuesday’s market close, Blue Apron said “we continue to believe that we have the right strategy to drive our resumption of growth as we launch additional new capabilities and test new product offerings.” It also is looking at “cost optimization initiatives,” although its announcement contained no specifics. The company also occasionally offers menus designed by celebrity chefs such as Food Network’s Christian Petroni.Īnd Blue Apron has expanded beyond meal kits to also sell wine, pantry items like olive oil and spice blends as well as knives, pans and other kitchen tools. (WW) that offers health-conscious dinner options. (BYND) products for fans of plant-based proteins. There are meal kits featuring Beyond Meat
The standard two-person plan offers three meals a week at a cost of $59.94 while the family plan for four people is $139.84 per week. It has several different types of subscription plans to appeal to different consumers. The company is trying to improve its customer retention rates. What’s gone wrong for Blue Apron? There is a ton of competition in the business, particularly since the barrier to entry is reasonably low.īlue Apron has to contend with Germany-based HelloFresh, which is currently the market-share leader in the US, as well as rival services from Martha Stewart-backed Marley Spoon and Kroge The company said Tuesday that it does not intend to comment further on any strategic alternatives “unless and until its Board of Directors determines that further disclosure is appropriate.”īlue Apron announces more layoffs as sales sink The stock is now down a stunning 97% from the peak price it hit shortly after Blue Apron went public in June 2017. Shares have plunged more than 50% to below $4. But the market value of the company remains the same.īlue Apron has continued to struggle since the reverse split. In a reverse split, a company reduces the number of total shares outstanding in order to raise the stock price. The company’s stock was trading at just 55 cents last June and was in danger of being delisted from the New York Stock Exchange before a 1-15 reverse stock split boosted the stock price to $8.25. Company management is holding a conference call Wednesday. Blue Apron posted a loss of $1.66 a share – a bigger deficit than expected – and a sales drop of more than 30% that was also larger than what Wall Street had forecast. The announcement came on the same day that the struggling meal-delivery service company reported its latest quarterly results. Blue Apron said Tuesday it is “evaluating a broad range of strategic options” that could include a sale of the company or its assets, a business combination, or raising capital.
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