Groupon Names Muhr to Help Lead International Amid Europe Slump
Stock Chart for Groupon Inc (GRPN)
Groupon Inc. (GRPN) promoted a sales executive to help lead international efforts after weak demand in Europe contributed to second-quarter revenue that trailed analysts’ estimates.
Chris Muhr, who was senior vice president of sales, will head the Europe, Middle East and Africa region, Julie Mossler, a spokeswoman for Chicago-based Groupon, said today in an e-mail. Veit Dengler is leaving after a six-month stint as senior vice president of international, she said.
“Groupon is making changes in its management structure that aim to flatten its global organization,” Mossler said. “These changes will make Groupon faster and more efficient, enabling the company to deliver more to local merchants and consumers across the globe.”
Groupon, which makes more than half its revenue from outside the U.S., has suffered from its increasing exposure to the European financial crisis. International revenue increased 31 percent to $308.2 million in the second quarter. Growth would have been 45 percent without the impact of foreign exchange rates, the company said last month.
Groupon had “challenges in Europe,” Chief Financial Officer Jason Child said last month. European shoppers bought fewer deals associated with discretionary purchases of $100 or more in the period, executives said.
Total revenue in the second quarter rose 45 percent to $568.3 million, trailing the average analyst estimate of $575.3 million.
The company makes money by selling discounts -- known as Groupons -- from businesses such as restaurants and nail salons. It then splits the revenue with the businesses.
Groupon also named Rob Kilgarriff as vice president of North American sales and account management, according to a statement today. Kilgarriff will report to Kal Raman, the global sales chief hired earlier this year.
Muhr has been at Groupon since 2009, begining as managing director of its U.K. office, according to LinkedIn. His promotion was first reported by Reuters, which said it obtained an internal memo announcing the changes.
Groupon rose 0.6 percent to $4.81 at 3:05 p.m. in New York. Through yesterday, the stock had dropped 76 percent since its initial public offering in November.
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