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CEO change at grill maker Weber
The company said it is also considering workforce reductions.
Grill maker Weber, which went public about a year ago, said today that Chris Scherzinger was leaving as CEO and a director.
Chief Technology Officer Alan Matula has been named interim CEO, the Palatine-based company said. Scherzinger had been CEO since April 2018, according to the company's website.
“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,” Kelly Rainko, non-executive chair of the Weber board, said in a statement announcing the moves. “The management team is well positioned to guide Weber through this transitional period and execute a transformation of the company’s cost base.”
The company estimated fiscal third-quarter net sales of $525 million to $530 million, saying “Net sales performance was affected by slower retail traffic, both in-store and online, in all key markets, as well as continued foreign currency devaluations that impact our reported results. Management believes that the slower retail traffic patterns are the result of pressured consumer shopping behaviors globally, due to rising inflation, supply chain constraints, fuel prices, and geopolitical uncertainty. The company expects these market headwinds to continue into the fiscal fourth quarter of 2022.
Weber also said "it is pursuing a number of financial transformation initiatives, which may include workforce reductions, reducing other COGS and SG&A expenses, as well as tightening its global inventory levels and working capital positions."
The company also said it was suspending its quarterly dividend "and is committed to working with lending partners to remain in compliance with the covenants in its credit facilities."