China's Dismal Consumer Demand Weighs On Dingdong's Q1; Registers 8.2% Topline Decline - Dingdong (Cayman) (NYSE:DDL)

Dingdong (Cayman Ltd) DDL reported a first-quarter FY23 sales decline of 8.2% year-on-year, to RMB5 billion ($727.7 million), missing the consensus of $829.2 million.
The gross merchandise value for the quarter decreased 6.8% Y/Y to RMB5.45 billion ($793.8 million).
Product revenues decreased by 8.1% Y/Y, and Service revenues declined by 12.9%.
The operating loss narrowed to RMB(50.1) million ($(7.3) million), compared with an operating loss of RMB(461.7) million.
The company held RMB5.7 billion ($830 million) in cash and equivalents.
Adjusted EPS was RMB0.01 ($0.00), compared to RMB(1.31) in the same quarter of 2022.
Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "During the first quarter of 2023, there was reduced consumer demand for our products as China lifted its dynamic zero-COVID policy and people were traveling during the Chinese New Year and engaging in spring outings. We also incurred additional expenses and labor costs to ensure timely order fulfillment during the holiday."
Price Action: DDL shares are trading lower by 4.95% at $3.84 premarket on the last check Friday.