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        <title><![CDATA[Blue Apron earns $1.1M profit — but warns that it won’t last]]></title>
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        <link>https://usagag.com/2020/07/29/blue-apron-earns-1-1m-profit-but-warns-that-it-wont-last/</link>
        <lastBuildDate>Wed, 29 Jul 2020 14:57:56 +0000</lastBuildDate>
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            <media:title type="html">Blue Apron earns $1.1M profit — but warns that it won’t last</media:title>
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        <content:encoded><![CDATA[<p><span >Blue Apron’s financials finally look appetizing &#8212; but the company warned that its surprise profit won&#8217;t last.</span></p><p><span >The New York-based meal-kit maker swung to a $1.1 million profit in the second quarter &#8212; a sharp turnaround from its year-ago loss of $7.7 million &#8212; as the coronavirus pandemic kept restaurants shuttered and consumers cooking at home.</span></p><p><span >The eight year-old company, however, said demand will likely taper off next year and that it hopes to maintain “a portion of the [current] demand” through the end of 2020. Blue Apron expects third-quarter revenue to jump 13 percent in the current quarter, but warned it also expects a to post a quarterly loss as high as $18 million.</span></p><p>Blue Apron shares &#8212; which have surged more than fivefold since the pandemic hit in mid-March &#8212; were off 6 percent at $13.24 in early Wednesday trades.</p><p><span >Blue Apron said its subscription service &#8211; which ships fresh, ready-to-cook ingredients in a box a few times a week &#8212; got 20,000 new customers during the quarter ended June 30. Orders topped more than $300 on average &#8212; a level of spending Blue Apron has not seen in five years, the company said.</span></p><p><span >That helped boost revenue 10 percent to $131 million &#8212; a return to growth that came &#8220;sooner than expected,&#8221; </span><span >Chief Executive Linda Findley Kozlowski said in a statement. </span><span >To prop up momentum, Blue Apron spent more on marketing &#8212; $11.6 million in the quarter compared with $9.7 million a year ago.&nbsp;</span></p><p><span >Just seven months ago, Blue Apron was laying off workers amid worries that it might file for bankruptcy, as too few people were snapping up its $10 meals and subscription service.</span></p><p><span >Blue Apron has struggled to staff its distribution centers and grappled with higher labor costs as it increases wages for its front-line employees. It has also been hit by shortages on some products and has had to delay new launches.&nbsp;</span></p>]]></content:encoded>
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