HelloFresh Shares Plunge 42% Amid Disappointing Earnings Outlook

The meal kit company's adjusted earnings for 2024 are expected to fall significantly, marking its worst session since its IPO in 2017.

HelloFresh shares plummeted 42% following a grim earnings outlook for 2024, with adjusted earnings anticipated to fall as much as $437.4 million.
The company's disappointing outlook is attributed to increased production capacity, marketing expenses, and the ramp-up of two new fulfillment centers.
Analysts from UBS and Deutsche Bank described the outlook as 'far worse' and 'disappointing,' respectively, with elevated customer acquisition costs expected to persist.
HelloFresh's share value has significantly declined since its peak in 2021, with a 70% drop in 2022 and a 30% decrease in 2023.
The company has struggled with customer retention, as many cancel their subscriptions after initial discounts, impacting its revenue.