Yet the analysis showed that customers have near zero lifetime value. An analysis from ValuePenguin of Blue Apron’s S-1 filing highlights a few critical issues.įor one, you would expect that the lifetime value of Blue Apron customers is theoretically very high, given the cost of the product. ![]() Stay out of the kitchen?īlue Apron’s problems may have started way before it went public. Blue Apron had to adjust its forecasts for the rest of the year, and announced that it would be significantly reducing its marketing spend in the back half of the year, which will have additional impact to the company’s top line growth and put further pressure on its stock price. And the latest chapter in the Blue Apron saga was a dismal earnings report for the second quarter of 2017, which showed that the company lost $31.6 million and 9% of its customer base. In August, the company announced that it was cutting over 1,270 jobs at its New Jersey facility, representing nearly a quarter of total staff. Not surprisingly, experts are already proclaiming Blue Apron’s IPO as the worst of 2017. Blue Apron slashed its planned issue price from $15 to $10, and as the drip-drip of Amazon/Whole Foods news continued into the fall, investors have fled and the company current trades at barely 50% of its issue price. ![]() Just as the meal-kit delivery company went public at the end of June, Amazon ( AMZN) announced its acquisition of Whole Foods, and the immediate threat of a new, much larger competitor to the Blue Apron brand emerged. ![]() Blue Apron ( APRN) is having a really tough 2017.
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