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Newegg Commerce Announces First Half 2022 Results and Q3 2022 Guidance
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)-- Newegg Commerce, Inc. (NASDAQ: NEGG), a leading global technology e-commerce retailer, today announced its
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 its guidance for the quarter ending September 30, 2022, which follows its first half 2022 results that were released on August 30, 2022.\n\nNewegg Chief Executive Officer Anthony Chow noted: “As with many in our industry, our performance for the first half of 2022 was affected by several factors that were out of our control including macro-economic conditions, higher inflation, and a weak sales environment due to changes in customer spending behavior.”\n\nNewegg Chief Financial Officer Robert Chang noted: “These challenges and the oversupply of inventory from our sellers negatively affected our net sales and gross margin. As a result, we reported first half 2022 net sales of $890.5 million, gross profit of $110.8 million, net loss of $18.9 million and Adjusted EBITDA[Note 1] of $(4.0) million. For the third quarter of the year, we expect net sales of between $358.8 million and $383.3 million, gross profit of between $42.0 million and $45.0 million, net loss of between $10.1 million and $8.5 million and Adjusted EBITDA[Note 2] of between $(1.7) million and $0.1 million.”\n\nMr. Chow added, “Through our continued investments in state-of-the-art technologies, which aim to improve customer experience, new product launches in several categories, and our persistent focus on bringing high-quality products to our customers, we have laid a strong foundation for our financial and operational performance. Additionally, we have taken steps to optimize our operations and lower our general costs going forward.”\n\nNewegg’s business plan anticipates the launch of several programs, including:\n\n\nBlack Friday Deals (launching earlier than usual this year) along with Black Friday Price Protection Program ahead of an early holiday shopping season: the promotion offers price protection on select Black Friday deals to reward shoppers by automatically refunding the price difference if purchased products drop in price.\n\n\nFantasTech Round 2 in October with Black Friday-type offers focusing on PC components, computer systems, entertainment and other tech-related products.\n\n\nOther new products and services such as:\n\n\nJustGPU.com, a research and e-commerce site fully dedicated to graphics cards to ...