5.9k Share this

Blue Apron Holdings Inc. says customers are eating up the Heat & Eat meals the company launched in September, driving a record average order value (AOV) for the third quarter.

“Our focus on providing increased variety and flexibility to our customers through the continued roll out of product innovations, including Heat & Eat, our first-ever prepared, single-serving meal, has proven to be successful, as evident in the growth of our Average Order Value (AOV) to a third quarter record of $62.30,” said Chief Executive Linda Findley in an earnings statement.

AOV rose from $58.56 last year, and was up from $57.60 in 2019.

Still, Blue Apron APRN, +5.33% reported a 2% revenue decline to $109.7 million for the quarter, which the company said was primarily due to a decline in orders and customers. The decline along with wider-than-expected losses sent shares down 14% in Tuesday premarket trading, but shares ran up 5.3% during the trading day.

See: Shake Shack soars as the burger chain heads to $1 billion in sales for the fourth quarter

The Heat & Eat meals can be prepared in the microwave and are based on the company’s signature dishes.

In addition to changes in the menu lineup, Blue Apron also made pricing changes during the quarter, adding shipping charges and making the price of plans more consistent and competitive.

“Importantly, with the pricing roll out, we continue to see strong engagement from customers and a negligible impact on churn,” Findley said on the earnings call, according to a FactSet transcript.

Blue Apron recently raised $78 million in capital that it plans to use for marketing, which the company expects will drive “at least mid-teens percentage year over year net revenue growth,” the earnings release said.

Blue Apron stock has rallied 59.2% for the year to date while the S&P 500 index SPX, -0.35% has gained 24.7% for the period.

Source: This post first appeared on http://marketwatch.com/

5.9k Share this
You May Also Like

Jared Dishes On Lab-Created Diamond Collection With Bridal Star Pnina Tornai, Retail Spaces, And Men’s Jewelry

Exterior shot of a typical Jared jewelry store. Photo Courtesy of Jared…

‘Bhool Bhulaiyaa 2’ Scores Big, Gets Highest Opening For A Hindi Film In 2022

Kartik Aaryan, Kiara Advani and Tabu on a poster of ‘Bhool Bhulaiyaa…

Why Manchester United Would Be Wise To Sign Jurrien Timber From AFC Ajax

AMSTERDAM, NETHERLANDS – SEPTEMBER 18: Jurrien Timber of Ajax celebrates his goal…

Musk Lashes Out At ESG As The Brand Starts To Lose Its Luster

BEIJING, CHINA – OCTOBER 23: (CHINA OUT) Elon Musk, Chairman, CEO and…

Small Businesses Lose Confidence in U.S. Economy

Small businesses are flashing warning signs on the U.S. economy as inflation,…

Terra’s amended revival plan would decrease the allocation for post-attack UST holders

After a grueling two weeks for the Terra community, the team behind…

The Bellamy Brothers Flash Back To Past With ‘40 Years: The Vinyl Album’

The Bellamy Brothers, Howard Bellamy and David Bellamy back stage during 1…

Kylian Mbappe Will Never Achieve True Greatness Staying In France

PARIS, FRANCE – MAY 21: Kylian Mbappé poses with PSG President, Nasser…