Newegg Commerce Stock Gains After Upbeat 2H, FY21 Outlook

Online retailer Newegg Commerce Inc NEGG has announced its financial forecasts for the six-month and full-year periods ending December 31, 2021. The company expects second-half FY21 sales of $1.2 billion and net income of $14.5 million to $18.5 million.
Newegg Commerce sees FY21 sales of $2.4 billion and net income of $36.1 million to $40.1 million.
"We expect to see continued strength in customer demand for technology products and anticipate a good holiday season, brought about in part by our deeper engagement with customers, our overall strength, and the execution of our growth strategies," said CFO Robert Chang.
Newegg is considering various compensatory measures to reward, incentivize and retain its employee workforce. Newegg will be filing a registration statement on Form S-8 to register 75.74 million of its common shares issuable pursuant to the Newegg Inc. Fourth Amended and Restated 2005 Incentive Award Plan.
Newegg is also exploring avenues to raise additional capital, including the possibility of offering newly issued common shares.
The company announced a temporary, limited trading window for restricted shares.
Price Action: NEGG shares are trading higher by 6.51% at $18.50 in premarket trade on the last check Monday.

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