Newegg lost $57.4 million last year and its net sales plummeted 27.6%!

It is learned that on April 24, Newegg announced its annual results ending December 31, 2022 and performance guidance ending December 31, 2023.

Newegg CEO Anthony Chow said: "Our slower growth in 2022 is primarily related to factors beyond our control, including weakening demand for technology and consumer electronics. Macroeconomic headwinds, including rising interest rates and high inflation, have further hampered our sales growth. As epidemic restrictions are lifted, consumers turn to physical stores in the short term, which has also affected our retail sales. In addition, large purchases during the epidemic, coupled with longer product life, are expected to extend consumers' upgrade cycles. Despite these challenges, we have withstood the difficult sales environment and adjusted our business to achieve better-than-expected results."

“After experiencing a pandemic-driven surge in demand from 2020 to 2021, we face new challenges in 2022 related to weakened consumer demand, which has negatively impacted our net sales, resulted in excess inventory supply and discounted pricing, and negatively impacted our gross margin,” said Christina Ching, Newegg’s chief accounting officer. “In response, we are prudently controlling inventory levels to preserve working capital. We have also implemented several cost-saving initiatives, including warehouse automation and consolidation, to align our cost structure with our 2023 net sales expectations. We expect to continue to identify and implement additional cost savings throughout 2023.”

Financial results for the full year 2022

• Net sales fell to $1.72 billion, compared with $2.38 billion in 2021.

• GMV fell to $2.2 billion, compared with $3.03 billion in 2021.

• Gross profit fell to $216.6 million, compared with $326 million in 2021.

• Net loss was $57.4 million, compared with net income of $36.3 million in 2021.

• Adjusted EBITDA fell to $0.6 million, compared with $52.4 million in 2021.

Performance indicators for the full year 2022

• The average order value in 2022 was $411, compared to $442 the previous year.

• Active customers (defined as unique customer IDs that have purchased at least one item on Newegg in the past 12 months) totaled approximately 2.7 million in 2022, down from 3.5 million in the previous year.

• The repeat purchase rate, or the percentage of active customers who have purchased items from Newegg at least twice in the past 12 months, was 31.3%, compared to 31.9% in the prior year.

2023 Full Year Performance Guidance

The company expects to achieve the following financial results for the next year ending December 31, 2023:

• Net sales will be between $1.52 billion and $1.58 billion.

• GMV will be between $1.94 billion and $2.03 billion.

• Gross profit will be between $189 million and $200 million.

• Net losses will be between $39 million and $50 million.

• Adjusted EBITDA will be between negative $5.3 million and positive $3.9 million.

Anthony Chow added: "With our strong industry position and brand awareness, we remain optimistic about our competitive position and growth prospects in the market. We plan to continue investing in our content creation division, Newegg Media, which is responsible for live streaming and short video content to drive customer purchases. Despite the current market environment, we believe Newegg can still achieve long-term success in existing and new growth areas."

Editor ✎ Nicole/

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