Weber shares tank as grill maker announces CEO departure amid disappointing sales

Weber Grill accessories are offered for sale at a home improvement store on July 23, 2021 in Palatine, Ill.

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Weber shares tumbled more than 20% in premarket trading Monday after the grill maker abruptly said CEO Chris Scherzinger is departing amid waning demand for its products in stores and online.

The company named its chief technology officer, Alan Matula, as interim chief executive, effective immediately, as it searches for a permanent 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 Weber’s board.

The company also announced preliminary results for the three-month period ended June 30, pegging net sales between $525 million and $530 million. Weber said its performance was hurt by slower retail traffic, in stores and online, in all key markets. It was also hit by continued foreign currency devaluations.

“Management believes that the slower retail traffic patterns are the result of pressured consumer shopping behaviors globally, due to rising inflation, supply chain constraints, fuel prices, and geopolitical uncertainty,” the company said in a press release.

Weber said it expects the headwinds to persist into its fiscal fourth quarter.

The Palatine, Illinois-based company said it is considering layoffs and other ways to reduce expenses, including by tightening its inventories.

Weber said it will provide additional details when it reports its fiscal third-quarter results on Aug. 15.

This story is developing. Please check back for updates.

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