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Highlights:
- WEBR stock fell sharply on Monday morning.
- Weber Inc said it has appointed Alan Matula as its interim CEO.
- WEBR stock slumped over 52 per cent year-to-date (YTD).
Stocks of Weber Inc. (NYSE:WEBR) witnessed a sharp decline on Monday, July 25, after the company announced the departure of its Chief Executive Officer (CEO) and the latest guidance for its financials and workforce.
WEBR stock was down by about 13 per cent at 1.26 PM EST on Monday, trading at US$6.53. The consumer stock has tumbled 52.51 per cent year-to-date (YTD) and fallen 14.84 per cent this month.
What is Weber's CEO departure development?
Talking about its top boss, the Illinois-based entity said that its CEO Chris Scherzinger is leaving his roles on the management team and board. Weber has named Alan Matula as its interim CEO.
Notably, the firm said that Mr Matula has previously served as a senior executive in Royal Dutch Shell plc (NYSE: RDS) and is currently working as Chief Technology Officer (CTO) in Weber.
The manufacturing player said it plans to look for a permanent CEO soon.
Weber Inc.'s latest financials
The electric grills manufacturer announced the withdrawal of its sales and earnings guidance for the ongoing year, saying that the higher prices and geopolitical turmoil is affecting its store traffic and margins.
In addition to that, it also cancelled its quarterly cash dividend as it is considering ways to reduce its expenses. The company added that it is mulling over job cuts or layoffs.
Weber said that it is expecting a net loss for the quarter that ended on June 30 due to squeezing traffic in its stores and higher discounts. It expects its net sales to be between US$525 million and US$530 million for the quarter.
Among other pressures, the company cited slower retail traffic both in its store and online.
The additional information about Weber's financial performance could be known in its Q3 FY22 results on August 15.
Weber's net sales were US$607 million, down 7 per cent year-over-year (YoY), in Q2 FY22. Its net loss was US$51 million in the same quarter.
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Bottom line
Weber went public in August 2021, around the time when consumers were spending a significant amount on cooking and entertainment resources at home during the COVID-19 pandemic. However, the recent waning demand amid inflation concerns and the possibility of a recession seem to have affected its outlook.
