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Newegg Commerce (NEGG) Stock Rises After Announcing 2021 Financial Forecast, Distribution Facility Expansion

Monday, November 29, 2021 10:09 AM | Kyle Depontes

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Newegg Commerce (NEGG) Stock Rises After Announcing 2021 Financial Forecast, Distribution Facility Expansion

What is going on with NEGG?

Newegg Commerce, Inc. (NEGG) stock jumped today after the North American e-commerce company reaffirmed its previously issued financial forecasts for its 2021 fiscal year.

The company also announced a number of new corporate initiatives, including the grant of restricted shares to key employees, a new employment agreement for its CEO, and the opening of a limited trading window for its restricted shares.

Additionally, Newegg announced its expansion into two new distribution centers located in Atlanta, GA (240,000 square feet) and Ontario, CA (240,000 square feet).

Shares of NEGG increased 4.71% to $20.77 as of Monday at 9:51am.

What does this mean for Newegg Commerce?

Newegg's statement on its previously announced full-year 2021 guidance reflects the company's consistent expectations of demand and profitability relative to its previous guidance.

For the fiscal year, Newegg expects to achieve net sales of approximately $2.4 billion and net income of between $36.3 million and $40.3 million.

Newegg’s CEO, Anthony Chow commented, “I am very pleased with Newegg’s strong year-to-date performance, which is a testament to the successful execution of our strategy focusing on profitable growth. This performance is in line with our expectations, and we have laid the foundation for a strong fourth quarter.”

Speaking on the new facilities, Don Gwizdak, Newegg’s VP of Operations, said, "These new distribution facilities further our commitment to quick and efficient delivery to customers throughout the United States."

"Establishing a presence in Atlanta enables us to reach customers across the lower half of the Eastern Seaboard much more quickly and efficiently than before, while our new Ontario facility gives us the scalability to meet the demands of our growing customer base on the West Coast.”

In other news, Newegg announced that it will accept Shiba Inu (SHIB) cryptocurrency as a form of payment on its platform in time for the holidays.

Newegg, which also accepts Bitcoin, Dogecoin, and Litecoin, will begin accepting SHIB in early December.

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