Newegg Announces First Half 2023 Results

About this update from Newegg Commerce, Inc.

[{"type":"text","content":" CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--\nNewegg Commerce, Inc. (NASDAQ: NEGG), a leading global technology e-commerce retailer, today announced results for the six months ended June 30, 2023.\n\n\n“We continued to experience weaker than expected demand for consumer technology products and finished goods during the first half of 2023 as consumers remain cautious in the current macroeconomic environment,” said Newegg CEO Anthony Chow. “In light of the challenging environment, we continued to make progress on several key cost saving initiatives designed to protect our bottom line. For example, in June 2023, we terminated the lease of one of our Southern California warehouses as part of our ongoing effort to optimize our real estate footprint and improve overall utilization rates. In the same month, we also closed escrow on an office building in Diamond Bar, California, where we intend to relocate our corporate headquarters in 2024. Through the first six months of 2023, we realized SG&A savings of $23 million compared to the first six months of 2022, and we expect to realize additional cost savings for the remainder of 2023 and beyond as a result of these and other payroll and warehouse optimization measures.”\n\n\nNewegg Chief Accounting Officer Christina Ching added, “In addition to our cost optimization initiatives, we continue to remain keenly focused on maintaining healthy inventory turnover and a strong cash position. We reduced our net inventory balance from $179 million as of June 30, 2022 to $138 million as of June 30, 2023. Furthermore, as of June 30, 2023, we had $51.8 million in cash on hand and $75 million in revolving credit availability under our credit agreement, which we believe is sufficient to cover our current working capital requirements.”\n\n\n2023 First Half Financial Highlights\n\n\n\nNet sales decreased 18.8% to $723.2 million for the six months ended June 30, 2023, compared to $890.5 million for the six months ended June 30, 2022.\n\n\n\nGMV (defined below) decreased 21.8% to $882.5 million for the six months ended June 30, 2023, compared to $1,128.7 million for the six months ended June 30, 2022.\n\n\n\nGross profit decreased 26.6% to $81.3 million for the six months ended June 30, 2023, compared to $110.8 million for the six months ended June 30, 2022.\n\n\n\nNet loss was $29.3 million for the six mo...

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