- Weber Inc (NYSE: WEBR) expects third-quarter FY22 sales of $525 million - $530 million, below the consensus of $532.74 million.
- The company noted its sales performance was affected by slower retail traffic and continued foreign currency devaluations.
- The company attributed the slower retail traffic patterns to pressured consumer shopping behaviors globally due to rising inflation, supply chain constraints, fuel prices, and geopolitical uncertainty.
- WEBR expects these market headwinds to continue into 4Q22.
- Weber sees a net loss in the period ending June 30, 2022.
- Management Change: Weber has appointed its current Chief Technology Officer, Alan Matula, as the interim CEO, effective immediately, as Chris Scherzinger departs from his roles on the management team and board of directors.
- The company has commenced the search for a permanent CEO.
- Dividend Suspension: Weber board has also suspended the quarterly cash dividend.
- Withdraws FY22 Outlook: The company also withdrew its fiscal year 2022 net sales and Adjusted EBITDA guidance, citing market uncertainty.
- Cost Cuts: Weber also pursues several financial transformation initiatives, including workforce reductions, reducing other COGS and SG&A expenses, and tightening its global inventory levels and working capital positions.
- Price Action: WEBR shares are trading lower by 16.44% at $6.28 on the last check Monday.
Read at Benzinga