Weber Inc (NYSE: WEBR) shares are down 20% on Monday after the outdoor grills and accessories maker said it was replacing its CEO amidst waning demand.
Weber shares hit on suspended dividend
Effective immediately, Alan Matula – the Chief Technology Officer will serve as the interim chief executive of the Palatine-headquartered firm, as it looks for a permanent replacement for Chris Scherzinger.
Weber also terminated its quarterly cash dividend this morning that’s further hitting the stock price. In the press release, Kelly Rainko (Non-Executive Chair of the Board) said:
We’re 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.
Versus the start of 2022, Weber shares are now down more than 50%.
Weber withdraws its full-year guidance
Also on Monday, Weber said its Q3 sales are now expected to fall in the range of $525 million to $530 million. Analysts have been looking at $532.7 million for the quarter that ended on June 30th.
The American manufacturer blamed inflation and currency exchange for the hit to its financial performance. It expects the headwinds to persist through the balance of 2022 but withdrew the full-year guidance citing “market uncertainty”.
Weber is also considering layoffs to minimise costs, details of which will likely be disclosed on August 15th when it reports its Q3 results.
Ahead of the stock market news, Wall Street had a “hold” rating on WEBR.
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