Webvan Releases Disappointing Results

10 January 2001

Online grocer Webvan yesterday joined the ever-lengthening list of suffering dotcoms as it announced disappointing Q4 results.

In the last three months of 2000, Webvan’s sales totalled $84 million, some 19% below expectations and only 2% above its Q3 results. Moreover, although average order size was up 10% to $112, the number of orders actually taken dropped 8%.

Chairman and chief executive George Shaheen announced a cut in marketing spend to limit losses to 23 cents per share rather than the 26 cents predicted by analysts.

Putting a brave face on things, Shaheen insisted that the etailer had “made progress across several fronts” during the quarter and improved its business model’s economics.

News source: Financial Times