Subscription meal kit retailer Blue Apron Holdings Inc.’s shares dropped to an all-time low of $3.52 following the New York-based company’s third quarter earnings report on Nov. 2.
The company’s shares have been on a steep decline since its IPO in June, and are now worth less than a third of the value.
Blue Apron grew revenue 3% and reduced marketing spending 31% during the third quarter, said CEO Matt Salzberg, during the company’s earnings call.
In mid-October, the company laid off 6% of its workforce, or about 300 employees.
During the quarterly earnings report, Salzberg also said Blue Apron is pulling back on plans to build a new fulfillment facility in Fairfield California.
“We believe our existing facility in Richmond, California, is well positioned to support our West Coast fulfillment operations at this time,” he said, during the call.
Further realignment of the company’s resources during the quarter included “centralizing certain teams including our creative and purchasing functions,” Salzberg said.
Blue Apron is focusing on building loyalty and revenue from its existing customers, and differentiating its brand, and has recently launched a podcast, “Why We Eat What We Eat,” which “explores the unseen forces that guide and influence the decisions people make about food, and a cookbook, “The Blue Apron Cookbook: 165 Essential Recipes and Lessons for a Lifetime of Home Cooking.”
“Initiatives like the cookbook and podcast are exciting from a brand building perspective in that they help us continue to build culinary credibility and relevancy, as well as reach customers in new channels,” Salzberg said.