Investors losing appetite for Blue Apron, which kicked off meal-kit fad

/ CBS/AP

New York — Shares of Blue Apron closed Wednesday at $1.05, close to levels that could eventually lead to the meal kit company's delisting from the New York Stock Exchange.

Blue Apron said this week that its customer count dropped 30 percent from a year ago, to 550,000. Total orders fell 29 percent in the first quarter, compared with 2018. The struggling New York company has shifted its strategy to focus on customers more likely to remain loyal and who spend more per meal.

That has happened and customers are spending more per meal. But it's not been enough to offset falling customer numbers. If the stock slips below $1 and stays there for 30 consecutive days, it will be threatened with a delisting under NYSE rules.

Trending News

To grow, the company began selling kits through Walmart's Jet.com and it's partnered with Weight Watchers. It's also testing a same-day delivery service. In an earnings call with analysts on Tuesday, Blue Apron Chief Financial Officer said the company plans to launch a shop on Jet over the next few weeks that will sell a wider range of products, including spices.

Growth remains challenging

Stock watchers at Raymond James say building a larger customer base will be a challenge without sustained ad spending. "Customer growth remains challenging near-term as Blue Apron reduces marketing spend and focuses on acquiring more profitable customers," analyst Aaron Kessler said in a research note.

Blue Apron helped kick off the meal kits craze in the U.S., but it's now facing increased competition from both stores and online rivals. Kroger and Albertsons have acquired meal kit companies to sell in their supermarkets. Amazon sells its own kits online and inside its Amazon Go cashier-less stores.

"An intensely competitive environment and lack of visibility into the near-term execution strategy keeps us on the sidelines," SunTrust Robinson Humphrey analysts said in a client note after Blue Apron reported earnings this week.

For its latest quarter, Blue Apron reported revenue of $141.9 million, down from $196.7 million in the year-ago period. Its net loss shrank from $31.6 million a year ago to $5.3 million.

Blue Apron shares have fallen 89% in the two years since it made its initial public offering of stock. In early April it hired former Etsy executive Linda Findley Kozlowski to replace Brad Dickeson as CEO. The company's co-founder and chief technology officer, Ilia Papas, also left the company that month.

First published on May 1, 2019 / 6:12 PM

© 2019 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Gillibrand wants to give voters up to $600 to donate to candidates

"The only answer is to get big, unaccountable money out of politics and put power back into the hands of the people in our elections"

14M ago

Barr to skip House Judiciary hearing Thursday

The attorney general wanted to be questioned only by lawmakers on the committee — not by their staff and lawyers

23M ago

Here are all the Democrats running for president in 2020

These are the candidates who have announced a bid for the presidency in 2020, aiming to deny Trump a second term

55M ago

White House withholds docs on clearances as ex-security chief testifies

Carl Kline, who formerly oversaw the White House security clearance process, was interviewed behind closed doors Wednesday

1H ago

More than 500,000 bees killed when hives set ablaze near Houston

Images showed charred hives strewn across the property and even one floating in a nearby lake

1H ago

Gillibrand wants to give voters up to $600 to donate to candidates

"The only answer is to get big, unaccountable money out of politics and put power back into the hands of the people in our elections"

14M ago

Barr to skip House Judiciary hearing Thursday

The attorney general wanted to be questioned only by lawmakers on the committee — not by their staff and lawyers

23M ago

Here are all the Democrats running for president in 2020

These are the candidates who have announced a bid for the presidency in 2020, aiming to deny Trump a second term

55M ago

White House withholds docs on clearances as ex-security chief testifies

Carl Kline, who formerly oversaw the White House security clearance process, was interviewed behind closed doors Wednesday

1H ago

Unaccompanied 16-year-old dies in U.S. custody

The teen from Guatemala had spent one night at a Texas shelter when he "became noticeably ill including fever, chills and a headache"

updated 10M ago

Who is Venezuela's president: Guaidó or Maduro?

Two men claim to be the rightful president of Venezuela as the nation slips further into chaos

1H ago

Unaccompanied 16-year-old dies in U.S. custody

The teen from Guatemala had spent one night at a Texas shelter when he "became noticeably ill including fever, chills and a headache"

updated 10M ago

Star goalkeeper rushed to hospital after heart attack

Casillas, 37, is "doing well" and is listed in stable condition

3H ago

U.S., Russia, China race to develop hypersonic weapons

After leading the way for decades, the U.S. is now scrambling to keep up in the race for rocket-boosted vehicles and weapons systems

5H ago

New emperor, new era in Japan as Naruhito takes the throne

CBS News senior foreign correspondent Elizabeth Palmer reports from Tokyo as a new emperor takes the reins after the first imperial abdication in the country in 200 years.

7H ago

Entertainment

Pharrell Williams tells Gayle King about his skincare routine

During an interview about his new Virginia Beach music festival, Something in the Water, Pharrell Williams talks to “CBS This Morning” co-host Gayle King how he maintains his youthful look.

updated 27M ago 01:18

New on Netflix, Hulu and Amazon

Shows and movies you'll want to stream in May

Apr 26 36 photos

Live Nation releases list of summer concerts with $20 tickets

Live Nation's all-in tickets promotion runs until Tuesday

2H ago

Jonas Brothers announce massive new tour

The Jonas Brothers are back​, and their first tour since their split in 2013 is going to be epic

3H ago

Chrissy Teigen getting Hulu food show

"Mayor of Twitter" Chrissy Teigen is not the only celebrity who got their own Hulu series

1H ago

Investors losing appetite for meal-kit pioneer Blue Apron

Company's stock has plunged 89 percent since going public in 2017 amid competition from the likes of Amazon

8M ago

U.S., Russia, China race to develop hypersonic weapons

After leading the way for decades, the U.S. is now scrambling to keep up in the race for rocket-boosted vehicles and weapons systems

5H ago

UK police face backlash over personal data requests

London government victims' advocate says sexual assault victims can be re-traumatized by the blanket request for their personal data when they go to police

Apr 30

Facebook rolls out major redesign at developers conference

"The future is private," CEO Mark Zuckerberg declared, promising more one-on-one contact and encryption in Messenger

Apr 30

Alphabet shares down 15 percent on disappointing earnings

Slowing ad sales have some analysts worried that search giant's core business is starting to sputter

Apr 30

States declare war on Styrofoam — "People think it breaks down"

Maine is the first U.S. state to ban polystyrene food containers, which are hard to recycle and often end up in oceans

updated 41M ago

How NASA would keep an asteroid from hitting Earth

While unlikely, scientists are preparing for the worst case scenario

23H ago

SpaceX launch delayed by space station glitch

Faulty electronics box on the space station will be replaced using the lab's robot arm

Apr 30

NASA troubleshoots space station power glitch

Upcoming SpaceX cargo launch could be delayed if space station power glitch isn't quickly resolved

Apr 29

Beto O'Rourke rolls out four-part climate plan

The four part plan aims to address the battle against climate change, what O'Rourke calls "the greatest threat we face"

Apr 30

EPA says Roundup weed killer is safe, in a win for Bayer

U.S. regulator see "no risks to public health" if Roundup is used properly — environmentalists strongly disagree

updated 12M ago

Strong new warning about sleeping pill risks

Some prescription sleeping pills like Ambien and Lunesta will now come with a prominent warning slapped on the box

4H ago

Suicides by self-poisoning soars among teen girls, study shows

The study examined those between the ages of 10 to 24 years old and showed suicide is the second leading cause of death in that age group

6H ago

Abortion doctors face up to 99 years in jail with new Ala. law

The bill makes no exceptions for rape and incest, despite objections from the state's Democrats.

6H ago

"Vampire facials" at spa linked to two HIV cases

More than 100 former clients of VIP Spa, which closed last September, have been tested for blood-borne infections

Apr 30

Investors losing appetite for meal-kit pioneer Blue Apron

Company's stock has plunged 89 percent since going public in 2017 amid competition from the likes of Amazon

8M ago

States declare war on Styrofoam — "People think it breaks down"

Maine is the first U.S. state to ban polystyrene food containers, which are hard to recycle and often end up in oceans

updated 41M ago

Is this record-setting stock market setting up investors for a fall?

If you're worried that stock prices can't get much higher, you might want to review this list of market indicators

Apr 30

EPA says Roundup weed killer is safe, in a win for Bayer

U.S. regulator see "no risks to public health" if Roundup is used properly — environmentalists strongly disagree

updated 12M ago

The rise of female gun ownership and fashionable "carrywear"

Alexo Athletica designed a pair of Lulelemon-like leggings with pockets for guns — and women gun owners took notice

Apr 26

More than 500,000 bees killed when hives set ablaze near Houston

Images showed charred hives strewn across the property and even one floating in a nearby lake

1H ago

Student killed at UNCC praised for fighting gunman

Authorities praised Riley Howell for fighting back against a gunman who killed two people and injured four others

updated 34M ago

What we know about the accused UNCC shooter

Trystan Terrell, 22, has booked into the Mecklenburg County jail

2H ago

Ex-Penn State president wins reprieve hours before reporting to jail

Federal judge throws out former Penn State President Graham Spanier's misdemeanor child-endangerment conviction

10H ago

Former Minneapolis cop found guilty of murder

A former Minneapolis police officer could face more than 15 years in prison for shooting and killing an unarmed yoga teacher. Mohamed Noor was found guilty Tuesday of murdering Justine Damond nearly two years ago. Dean Reynolds reports.

9H ago 02:45

SpaceX launch delayed by space station glitch

Faulty electronics box on the space station will be replaced using the lab's robot arm

Apr 30

NASA troubleshoots space station power glitch

Upcoming SpaceX cargo launch could be delayed if space station power glitch isn't quickly resolved

Apr 29

NASA just detected the first "marsquake"

For the first time since its mission began, NASA's InSight lander has detected what scientists believe to be a marsquake

Apr 23

"Marfa Martians" sending their science experiment to space

The team, made up of 10 and 11-year-olds, want to find a way to kill bacteria in space

Apr 22

SpaceX suffers Crew Dragon engine test anomaly

SpaceX suffers engine "anomaly" in Crew Dragon test vehicle during Cape Canaveral engine test

Apr 20

Worst movie sequels since 2000, ranked

These are the lowest-rated sequels this century, according to Metacritic's rankings

Apr 30 51 photos

Private secrets shared via postcard

Since 2004, hundreds of thousands of anonymous contributors with something to get off their chest have sent postcards to the website PostSecret.com

Apr 28 32 photos

Met Gala 2019: Craziest looks of all time

The bigger the tiara – or pope hat – the better! (Just ask Rihanna, Katy Perry or Sarah Jessica Parker… )

Apr 26 47 photos

New on Netflix, Hulu and Amazon

Shows and movies you'll want to stream soon

Apr 26 36 photos

Jason Corbett murder: A look at the evidence

In August 2015, former FBI agent Tom Martens and his daughter Molly Corbett admitted killing her Irish-born husband Jason Corbett, insisting they beat him in self-defense with a brick paver and a baseball bat because Jason was choking Molly and threatening to kill her

Apr 20 11 photos

Popular

Pharrell Williams tells Gayle King about his skincare routine

During an interview about his new Virginia Beach music festival, Something in the Water, Pharrell Williams talks to “CBS This Morning” co-host Gayle King how he maintains his youthful look.

updated 27M ago 01:18

Sneak peek: The Case Against Enrico Forti

A former TV producer and windsurfing champion says he’s in prison for a murder he didn’t commit — the only physical evidence against him: a teaspoon of sand. "48 Hours" correspondent Erin Moriarty investigates Saturday, May 4 at 10/9c on CBS.

1H ago 03:12

Harris grills Barr on White House contacts

Sen. Kamala Harris, a Democratic presidential candidate, questioned Attorney General William Barr about whether anyone at the White House had ever suggested he open an investigation. She also asked about the propriety of Deputy Attorney General Rod Rosenstein's involvement in deciding the president had not obstructed justice.

1H ago 08:11

Boy opens up to classmates about autism

A California teacher captured video of one of her fourth-graders opening up to his classmates about having autism. The students listened quietly as he spoke, and when he was done, they had all had amazing reactions.

1H ago 02:36

Sen. Hirono to Barr: "You knew you lied"

Senator Mazie Hirono, D-Hawaii, spent the majority of her question time at a hearing on Capitol Hill lambasting Attorney General William Barr, saying he should "never have been involved in supervising the Mueller investigation." She accused Barr of lying to members of Congress to "protect" President Trump.

1H ago 07:38