Reeds Q2 net sales fall 21% on lower volumes with key customers
REED•Outlook
- Company expects gross margin to expand to the mid-30% area
- Reed’s expects continued optimization of selling, general and administrative expenses
- Company is evaluating financing alternatives to support the business going forward
Overview
- U.S. craft beverage maker's Q2 net sales fell yr/yr due to lower volumes with key customers
- Gross margin rose to 24% from 8%, helped by lower inventory write-offs and logistics improvements
- Net loss narrowed to $4.3 mln as cost controls and regained shelf space took effect
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Miss | $7.49 mln | $7.62 mln (1 Analyst) |
| Q2 Net Loss | $4.27 mln | ||
| Q2 Gross Profit | $1.79 mln | ||
| Q2 Loss Per Share | $0.36 | ||
| Q2 Operating Expenses | $5.85 mln | ||
| Q2 Operating Income | -$4.06 mln |
The one available analyst rating on the shares is "hold".
