By Senad Karaahmetovic
Shares of Weber Inc (NYSE:WEBR) are down over 16% after the company withdrew its full-year guidance for revenue and EBITDA, citing uncertainty.
Weber reported preliminary net sales for the third quarter of $525 million to $530 million.
“The Company now expects Adjusted EBITDA to be marginally profitable, which is materially lower than the internal budget related to the previously announced fiscal year 2022 Adjusted EBITDA guidance. The Company also expects to have a net loss in the period ending June 30, 2022. Profitability was negatively impacted by significant currency devaluations within the quarter, promotional activity to enhance retail sell through, lower margin country, and product mix, as well as substantial freight cost increases,” Weber said in a filing.
The company also announced that CEO Chris Scherzinger will leave the company and the Board. While the search for a permanent CEO will commence immediately, Weber named Alan Matula, current CTO, as interim CEO.
“We are taking decisive action to better position Weber to navigate historic macroeconomic challenges, including inflationary and supply chain pressures that are impacting consumer confidence, spending patterns, and margins,” said Kelly Rainko, Non-Executive Chair of the Weber Board of Directors.
Weber is due to report FQ3 results on August 15.