Groupon (GRPN -2.94%) delivered a better-than-expected first-quarter earnings report after the market closed Tuesday -- a day during which shares had soared almost 13%. But the discount marketplace's stock tumbled 9% in Wednesday morning trading.
Despite reporting a narrower-than-anticipated adjusted loss and beating expectations on sales, shares of Groupon fell Wednesday; the broader market indexes also opened lower as investors reacted to news that the numbers of new cases of COVID-19 were rising in parts of the U.S.
Although the discount coupon provider soared more than 10% in after-hours trading Tuesday, the morning brought on a more somber outlook as traders grew concerned that markets and retailing could remain troubled for a longer period than they had been hoping for.
Groupon reported gross billings of $526.7 million, down 31.5% year over year, with gross profits plunging 34% to $201 million. But its adjusted loss of $1.63 per share was $0.28 per share better than what Wall Street had been looking for.
The company initiated a restructuring plan at the outset of the pandemic that is intended to save it $100 million in 2020 and $125 million in 2021. "Once fully implemented, we expect our multi-phase restructuring plan to deliver approximately $225 million in annualized cost savings," said interim CEO Aaron Cooper.
Cooper also expects that Groupon's "distinct competitive advantages" will allow it to gain market share in the fragmented industry.