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Why is Blue Apron (APRN) Tanking Today?

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Shares of meal kit provider Blue Apron slid roughly 24% in morning trading on Wednesday after the company reported weaker-than-expected Q1 earnings.

First quarter net loss of $20.1 million, or $1.51 a share, was wider than the year-ago net loss of $5.28 million, or $0.41. Revenue declined 28% year-over-year to $101.9 million due to reduced marketing costs. Wall Street expected a loss per share of $1.50 and revenue of $107 million.

Because of the coronavirus pandemic, Blue Apron said it’s seen an uptick in interest for its meal kits; the company will now increase production for future orders and hire more employees, and said it has seen no supply chain issues or disruption at fulfillment centers.

CEO Linda Findley Kozolowski believes the current uptick in demand can be “maintained beyond the period of the direct impact of COVID-19,” helping to drive revenue growth for the second quarter.

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