Blue Apron Plummets to Record Low After CEO’s Conference Comments
Why Blue Apron Shares Are Down Despite Beating Estimates
This article is for subscribers only.
Blue Apron Holdings Inc. shares tumbled as much as 22 percent to a record low after an executive’s comments heightened concerns about profit margins at its newest fulfillment center.
At an RBC conference on Tuesday, Chief Executive Officer Matthew Salzberg said the company’s facility in Linden, New Jersey, is “performing as our worst margin operating center because it is very new,” according to CNBC. That echoed remarks he made last week after the meal-kit delivery company reported third-quarter earnings. On a conference call following the report, he said margins at Linden were “significantly lower than the average of our existing centers.”