Luckin Coffee's stock sinks after wider-than-expected loss, revenue miss
Shares of Luckin Coffee Inc. sank 5.5% in premarket trading Wednesday, after the China-based coffee retailer reported a wider-than-expected second-quarter loss and revenue that soared more than 7-fold but came up short of analyst projections. The net loss for the quarter to June 30 was RMB1.21 billion ($176.9 million), or RMB6.56 a share, compared with a loss of RMB1.13 billion, or RMB2.88 a share, in the year-ago period. The average estimate of analysts surveyed by FactSet were expecting a loss per share of RMD3.07. Total revenue rose to RMB909.12 million ($132.43 million) from RMB121.51 million, but was below the FactSet consensus of of RMB940.3 million. Average monthly transacting customers rose 411% to 6.2 million and average monthly items sold grew 590% to 27.6 million, while total number of stores increased 375% to 2,963. The stock, which started trading on May 17, closed Wednesday 44% above its initial public offering price of $17. The stock has gained 20.5% since it closed at $20.38 on its first day of trading, while the S&P 500 has gained 2.3% over the same time.
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