Why Shares Plummeted

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of (UNKNOWN: VITC.DL  ) closed down 17% after the online retailer missed expectations in its quarterly report.

So what: The vendor of health and wellness products lost $0.11 per share, a penny worse than estimates, while revenue rose 10.1% to $90.5 million, below the consensus at $97.88 million. The company added a total of 312,000 new customers in the quarter, a decrease of 2% from a year ago, while total active customers grew 6% to 2.1 million. CEO Jeffrey Horowitz said, "During the quarter, we tested new promotional strategies in order to better balance customer growth and retention with gross margin. Going forward, we will continue to adjust our promotional strategy accordingly."

Now what: It's hard to see a positive in this report. While the company's net loss improved from $0.15 per share to $0.11, it still seems like profits will be elusive for a while. Analysts expect losses through this year and next even as revenue growth is projected to be near 20%. Online retail is a very competitive arena, and even with a strong customer base, Vitacost is having trouble making the cost equation work.

It's not too late to ride the bull this year
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2013." To find out which stock it is and read our in-depth report, simply click here. It's free!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2716249, ~/Articles/ArticleHandler.aspx, 9/24/2016 7:13:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
VITC.DL $0.00 Down +0.00 +0.00% CAPS Rating: No stars