Weber grill accessories are offered for sale at a home improvement store on July 23, 2021 in Palatine, Ill.
Scott Olson | Getty Images News | Getty Images
weber Shares fell more than 20% in premarket trading on Monday after the grill maker suddenly said CEO Chris Scherzinger was departing amid a drop in 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 seeks a permanent CEO.
Kelly Renko, Weber’s non-executive chairman of the board, said, “We are taking decisive action to better position Weber to navigate historic macroeconomic challenges, including inflation and supply chain pressures, which have affected consumer confidence, spending and spending. Doing patterns and margins are affected.”
The company also announced preliminary results for the three-month period ended June 30, with net sales pegged at between $525 million and $530 million. Weber said its performance was impacted by slow retail traffic in all major markets, in stores and online. It was also affected by continued foreign exchange devaluation.
The company said in a press release, “Management believes that slow retail traffic patterns are a result of globally pressured consumer buying behavior due to rising inflation, supply chain constraints, fuel prices and geopolitical uncertainty. “
Weber said it expects headwinds to persist in its fiscal fourth quarter.
Illinois-based company Palatine said it is looking at layoffs and other ways to cut expenses, including by tightening its inventories.
Weber said it would provide additional details when it reports its fiscal third-quarter results on August 15.
This story is developing. Please check back for updates.