Krispy Kreme Inc.’s losses widened in the spring, but executives credited the decline to costs associated with returning to the public market and established annual guidance ahead of analysts’ estimates Tuesday.
reported a second-quarter loss of $15 million, or 13 cents a share, a decline from a loss of 10 cents a share a year ago that the company blamed on the costs of its June initial public offering. After adjusting for IPO expenses, share-based compensation and other costs, the company reported earnings of 13 cents a share.
The doughnut chain reported net revenue of $349.2 million, up from $245 million a year ago. Analysts on average expected adjusted earnings of 14 cents a share on sales of $333.4 million, according to FactSet.
Shares gained more than 2% in after-hours trading following the announcement, after closing with a 4% decline at $14.04. Krispy Kreme returned to the public markets by selling shares at $17 apiece in late June, well below than the targeted price range. The stock fell below that price in July and has remained lower throughout August.
For the full year, Krispy Kreme established a forecast for revenue of $1.34 billion to $1.38 billion and adjusted earnings of $62 million to $68 million. Analysts on average were projecting annual sales of $1.34 billion and adjusted net income of $61.8 million, according to FactSet.