Meal kit delivery company Blue Apron Holdings Inc (NYSE: APRN) showed in its fourth-quarter report a 33% decline in revenue and a 37% loss in subscribers. But the company has a turnaround plan and CEO Linda Kozlowski was a guest on Fox Business Wednesday morning to explain what will come next.
Blue Apron was once worth $2 billion but at current levels, the stock is valued less than $40 million. Kozlowski said the company learned a lot throughout its journey as an early pioneer in the space. But the industry itself is still in the early stages of growth, so the company is exploring strategic alternatives to "figure out how to fuel that future."
Management is working with outside advisors to best determine what course of action would be best for the business, the CEO said. The company didn't specifically say it's seeking any one specific strategic alternative and she "can't comment on rumors or speculations" related to M&A talks.
Kozlowski is looking at strategic alternatives to improve value for shareholders and there's a "multitude of opportunities out there."
Why It's Important
Blue Apron stands out in the food space as it oversees all aspects of its supply chain from end-to-end, she said. This is important for consumers who demand to know where their food comes from as eating is a very important family activity.
The company also hopes to separate itself by offering food items that are difficult to find in grocery stores, such as Korean rice cakes. Also important, Blue Apron delivers only what is needed to cook a meal, as opposed to the broader food industry which wastes around 30% to 40% of its products.
Blue Apron's stock traded higher by 8.5% to $2.55 per share at time of publication.