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Blue Apron shares sank Wednesday after the meal-kit delivery service's quarterly loss widened nearly four-fold to $20.1 million in the three months through March.
The New York-based company 's loss of $1.51 a share compared with a loss of $5.3 million, or 41 cents a share, during the same period in 2019. Sales dropped 28 percent to $101.9 million as CEO Linda Findley Kozlowski slashed marketing costs to focus on high-loyalty customers.
As a result, the company -- which weighed selling itself last month -- said it's increasing production for future orders, hiring more employees and anticipating second-quarter revenue growth.
|APRN||BLUE APRON HOLDINGS||6.14||-0.38||-5.90%|
"We are focused on driving customer retention and establishing longer-term consumer habits out of the heightened demand we have been seeing as a result of the impact of COVID-19," Kozlowski said. "We expect that this uptick in demand can be maintained beyond the period of the direct impact of COVID-19, even as restrictions begin to be lifted."
The company also said Wednesday it filed a shelf registration with the Securities and Exchange Commission to issue up to $75 million in stock or debt.
Shares of Blue Apron fell 23 percent to $9.67 in New York trading on Wednesday, paring gains so far this year to 38 percent.