Blue Apron shares were soaring Tuesday evening, up nearly 20%, after CEO Brad Dickerson left the meal-kit maker to pursue new opportunities, the company said in a press release. He will be replaced by Linda Findley Kozlowski, who was most recently the COO at Etsy.
“We are incredibly excited to have an executive of Linda’s calibre as Blue Apron’s next CEO,” said Matt Salzberg, chairman of Blue Apron’s Board of Directors.
“Linda’s exceptional leadership and marketing expertise, as well as her understanding of Blue Apron customers as a long-time customer herself, will help her advance the company towards sustainable, profitable growth.”
Blue Apron has had a difficult time as a publicly traded company since its June 2017 initial public offering. First, Amazon announced plans to buy Whole Foods, causing Blue Apron to slash its IPO range to between $US10 and $US11 a share, down from $US15 to $US17, as investors worried about the competition such a deal would bring. Then, less than a month later, Amazon rolled out its own meal-kit business.
Recently, the meal-kit maker has had trouble holding onto customers. Last August, Blue Apron said its total number of customers plunged by 24% year-over-year in the second quarter and that revenue per customer was down by $US1 to $US250. At that time, the stock was trading near $US2 a share.
This story is developing. Check back for updates.
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