Shares of Shopify plunged Wednesday after the Canadian company that helps retailers with online sales warned of easing revenue growth and thinner margins in the current quarter.
That caught a lot of investors off guard after the company rebounded strongly from the pandemic and started 2024 with a bang.
The e-commerce company anticipates quarterly gross margin will decrease by about 50 basis points compared with the first quarter, when that measured 51.4%.
Shares slid 19.5% in afternoon trading, a bit of a recovery after having been down more than 21% earlier.
For the first quarter, Shopify reported an adjusted profit of
During a conference call Wednesday, Chief Financial Officer
Europe’s economy perked up slightly at the start of the year, recording 0.3% growth in the January-March quarter compared to the last three months of 2023. But the economy has been held back by high inflation that has sapped consumer purchasing power, and by an energy price spike related to
Meanwhile, in the
McDonald’s said late last month that it plans to increase deals and value messaging to combat slowing sales.
The
The government is slated to report retail sales for the month of April next week, which should offer some more insight into shopping behavior.
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AP Retail Writer Anne D'Innocenzio in
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