Weber Inc. (NYSE: WEBR) released its second-quarter earnings FY22 on May 5, 2022, before the market opened. The company reported and adjusted loss of $0.64 per share, missing the Zacks consensus estimated loss of $0.17 per share by over 400%. Therefore, the WEBR stock slumped in the market trading session today.
- Net sales decreased 7%, to $607 million, from $654 million in the prior-year quarter. On a two-year stack basis, net sales increased 46% above 2020. Foreign exchange accounted for $20 million of the sales reduction, and, excluding the impact of foreign exchange, net sales declined 4% year-on-year. Net sales were adversely impacted by product and component part availability resulting from global supply chain disruptions. In addition, retail traffic, both in-store and online, slowed broadly in comparison to last year, driving lower category point-of-sale performance. The decrease in sales volume was partially offset by certain pricing actions.
- Net sales decreased 18% in the Americas, to $306 million, from $373 million in the prior-year quarter, however on a two-year stack basis, net sales increased 41%. EMEA net sales increased 9%, to $268 million, from $246 million in the prior-year quarter, and increased 47% on a two-year stack basis. APAC net sales decreased 6% to $34 million, from $36 million in the prior-year quarter, yet increased 157% on a two-year stack basis.
- Gross profit decreased 27% to $209 million, or 34.3% of net sales, compared to $286 million or 43.7% of net sales in the prior year. We made significant progress on our recovery plan as we improved gross margins by 1,170 basis points from the first to second quarter. The year-over-year decrease in gross profit was primarily due to higher inbound freight costs, higher commodity costs and elevated costs related to the startup of a new production line.
- Net loss of $51 million compared to net income of $69 million in the prior-year quarter. Adjusted net loss was $34 million compared to adjusted net income of $98 million in the prior-year quarter.
- Adjusted EBITDA of $86 million compared to Adjusted EBITDA of $149 million in the prior-year quarter, driven by lower net sales and higher cost of goods sold in the quarter as compared to the prior-year period.
“Our second-quarter results reflect our proactive responses to supply chain and material cost inflation, which helped drive higher sequential gross margin and adjusted EBITDA margin versus the prior quarter. Weber has operated through many environments over the last 70 years and remains well-positioned to navigate near-term market challenges to drive long-term growth and value creation for shareholders.”said Chris Scherzinger, Chief Executive Officer of Weber
The WEBR stock dropped by 6.02% and traded at $6.71 (down by 0.43 points) at 9:57 a.m. EDT in the market trading session today. The market capitalization of the stock stood at $1.92 billion. The share volume traded for the WEBR stock was 709,914, much higher than the average share volume of 461,866.