Newegg Stock Slides After Profit Swing as Sales Drop Tests the PC-Hardware Retailer
Newegg Commerce shares fell in Friday trade, a day after the online electronics retailer reported an 11.8% drop in quarterly net sales even as it moved to a profit. The stock was last at $17.60, down 5.4%, after touching an intraday low of $17.25. The move matters because Newegg’s latest numbers show the tension in the PC-parts market: customers are still buying higher-ticket hardware, but fewer are coming back to the site. In a May 28 Form 6-K, the company said first-quarter net sales fell to $306.2 million from $347.2 million a year earlier, while GMV — gross merchandise value, a measure of products sold through its own sites and marketplace — fell 12.1% to $377.5 million.