Blue Apron’s new CEO
Blue Apron (APRN) stock rose 7.3% on April 3. Investors reacted positively when the company announced its new CEO. After the markets closed on April 2, Blue Apron announced that Brad Dickerson, its president and CEO, resigned to pursue new opportunities. Dickerson joined Blue Apron as the CFO in February 2016. He assumed the role of president and CEO in November 2017.
Blue Apron has named Linda Findley Kozlowski as the new president and CEO effective April 8. Recently, Kozlowski served as Etsy’s (ETSY) COO.
The new CEO has a challenging task ahead of her to revive Blue Apron. The company has faced declining revenues and a shrinking customer base amid rising competition from HelloFresh and Kroger (KR), which owns Home Chef. Blue Apron stock has lost ~90% of its value since its IPO in June 2017.
Blue Apron also announced that Ilia Papas, the company’s co-founder and chief technology officer, will leave the company effective May 3 to pursue new opportunities.
The company also reaffirmed its outlook of delivering profitability on an adjusted EBITDA basis in the first quarter and fiscal 2019.
Blue Apron stock has risen 2.0% on a year-to-date basis as of April 3, which lags the 14.6% gain in the S&P 500 Index. The company’s revenues fell 24.2% to $667.6 million in 2018 due to a fall in the number of customers. The company decided to decrease its marketing efforts and focus on high-affinity customers. Blue Apron’s loss per share was $0.63 in 2018—compared to a loss per share of $1.64 in 2017.
As of April 3, Blue Apron stock was rated as a “hold” by 11 (or 92%) of the 12 analysts tracking the stock. One analyst had a “buy” recommendation. As of April 3, the average 12-month target price for Blue Apron stock was $1.54, which implies a 48% upside compared to the closing price of $1.04 on April 3.