NEW YORK, NY / ACCESSWIRE / August 3, 2018 / Blue Apron Holdings fell almost 25% on Thursday after revealing a revenue miss in its second quarter financial report and a decrease in customers. Shares of Fitbit also closed down after reporting its second quarter earnings report.
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Blue Apron Holdings, Inc.
Blue Apron Holdings, Inc. shares closed down 24.38% on almost 14 million shares traded on Thursday. The meal-kit company revealed in its second quarter earnings report that it had 717,000 customers at the end of June, a 24% drop from last year. Revenue during the quarter also fell 25% to $179.6 million. Analysts were waiting for revenue of $188.5 million. The company reported loss per share of 17 cents, slightly better than the 18 cents loss expected by the street. CEO Bradley J. Dickerson said during the earnings call, "Entering 2018, we articulated that this year would be a year of transition and building for sustainable growth. And it would take time to build top line momentum particularly given our significant pullback in marketing spend in the second half of 2017. At the time, we did not have complete visibility into how this transition would impact 2018, including the effects on the business and returning to a more normalized marketing spend case." He added, "We did see some positive momentum in the first quarter of 2018 as we increased marketing spend from the fourth quarter of last year. However, it was challenging to maintain this momentum throughout the second quarter as we implemented a more consistent pace of marketing spend with a focus on efficiency."
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Fitbit, Inc. shares closed down nearly 8% on Thursday with almost 20.5 million shares traded. Initially shares jumped 2.4% after the market closed on Wednesday when the company reported second quarter earnings. For the quarter, revenues fell 15.3% YOY to $299.3 million. This was way past what analysts were expecting at $285.4 million. A net loss of $54.2 million was higher than the net loss of $19.3 million in the same period a year ago. EPS of -$0.22 was also two cents better than the -$0.24 expected by Wall Street. Looking ahead, the wearable company has guided for third quarter revenue in the range of $370 to $390 million and non-GAAP net loss of $0.02 a share to a profit of $0.01 per share. Analysts had forecast third-quarter revenue of $377.6 million. CEO James Park said during the earnings call, "Fitbit sold 2.7 million devices in the second quarter, up sequentially and with the year-over-year rate of decline in devices sold dropping to 20% in the second quarter versus 27% in the first quarter. The success of Versa has improved the Company's positioning with retailers, solidified shelf space for the Fitbit brand, and has provided a halo effect to our other product offerings. Retailers have been looking for a counterbalance to Apple and Versa has delivered it."
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