Last week recteq appointed a new CEO, then we got news that Traeger was laying off staff and cutting costs. Now Weber is the latest grill company to announce big changes with their CEO Chris Sherzinger departing, effective immediately.
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. The management team is well positioned to guide Weber through this transitional period and execute a transformation of the Company’s cost base.
Kelly Rainko, Non-Executive Chair of the Weber Board of Directors
A search for a new CEO will begin immediately. In the interim, Chief Technology Officer Alan Matula will take over as CEO of the largest grill company in the world. He served as Chief Information Officer of Weber since 2015 and was named Chief Technology Officer in March of this year. Prior to Weber he served as Chief Information Officer of Royal Dutch Shell plc.
Preliminary Financial Results
In addition to Weber announcing they were moving on from their current CEO, they gave preliminary financial results ahead of their normal conference call. They estimate sales of $525 – $530 million for the quarter ending June 2022, citing “slower retail traffic, both in-store and online, in all key markets, as well as continued foreign currency devaluations that impact our reported results”. The company also gave guidance that they’ll be “marginally profitable” for the fiscal year, which is much lower than their previous guidance. They have also suspended the quarterly cash dividend to preserve cash.
Layoffs and Cost Cutting
Weber is looking at other ways to improve their financial performance “which may include workforce reductions”. They’re also looking at other expense reductions and improving their working capital position, which includes lowering their inventory levels.