on Monday cut its profit outlook for the second consecutive quarter and said sales would fall for the year due to global supply-chain disruptions and slowdowns in retail traffic.
The company said the disruptions are making it hard to source products needed to assemble its grills and other products. At the same time, in-store and online sales traffic slowed down at the beginning of this year as more customers opted to travel more. Unfavorable weather also turned people away from grilling, the company said.
Weber shares were down 5.5% in morning trading to $6.75 after earlier falling more than double digits to a new 52-week low.
The barbecue brand, which went public last August, reported a loss of $54.5 million, or $1.02 a share, for the quarter ended March 31, compared with a profit of $69 million in the same period a year earlier.
The total cost of goods rose 8.1% to nearly $400 million.
Net sales fell 7% to $607 million amid product shortages. Weber sold fewer items compared with a year ago but made up for some of that decline with higher prices. The company also took a $20 million hit from foreign exchange due to the weaker euro, the primary currency for 30% of Weber’s business.
The company said it now expects revenue between $1.65 billion and $1.8 billion this year, down from the nearly $2 billion it hit last year. It previously expected sales to rise to as much as $2.14 billion.
For the second quarter in a row, Weber cut its profit outlook as disruptions in the supply chain are driving up costs for raw materials. It now forecasts adjusted earnings before interest, taxes, depreciation and amortization between $140 million and $180 million, down from its previous view of between $275 million and $325 million.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
For all the latest Business News Click Here