Newegg Q1 sales fall 11.8%, hurt by supply constraints & pricing pressure

Newegg Commerce

28/05/2026 14:10

Overview
US tech e-commerce retailer's Q1 net sales fell 11.8% yr/yr amid supply constraints
Gross profit rose 10.3% and net income turned positive from a loss last year
Company cites margin management and inventory discipline for improved profitability despite lower sales

Outlook
Company says priorities for 2026 are margin protection, inventory discipline, and capturing enterprise AI demand
Newegg expects continued industry memory supply constraints and elevated component prices in 2026
Company plans to advance AI strategy for customer experience and internal operations throughout 2026

Result Drivers
SUPPLY CONSTRAINTS & PRICING PRESSURE - Co said memory supply shortages and industry-wide pricing pressure contributed to lower sales
INVENTORY MANAGEMENT - Early procurement and disciplined inventory positioning helped maintain product availability and support margins
SHIFT IN CONSUMER DEMAND - Co observed consumers becoming more price-sensitive and shifting to value-oriented products, while enterprise demand for AI hardware remained strong

Company press release: ID:nBwzXLKLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
 
$306.24 mln
 
Q1 Net Income
 
$7.81 mln
 
Q1 Gross Profit
 
$43.73 mln
 
Q1 Operating Profit
 
$7.39 mln

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)