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Beyond said it expects net sales of $106 million, below its prior outlook of $120 million to $140 million. Wall Street analysts surveyed by Refinitiv were anticipating revenue of $133.1 million for the quarter. The company did not release an outlook for its quarterly earnings, but analysts were expecting a loss of 29 cents per share ahead of Friday’s announcement.
Beyond shares were recently down nearly 14%, after falling as low as $91.55. The stock has fallen 25% this year, giving it a market value of $5.9 billion.
The company said multiple factors caused the lag in sales, including the impact of the Covid-19 delta variant. Beyond said a Canadian distributor decreased retail orders for longer than expected as its restaurants reopened, and it had expected incremental orders that didn’t materialize after one of its large customers changed distributors. Labor shortages also likely delayed distribution expansion and shelf resets, the company said.
Operational challenges also hurt its results. A Pennsylvania facility lost potable water for two weeks and another suffered water damage to inventory after severe weather, Beyond said.
“In our view, BYND has yet to fully grasp the underlying issues impacting its results, particularly as it relates to differentiating Covid-related issues vs. the impact of rising plant-based meat competition and/or weak consumer demand due to either high price, disappointing taste, or health concerns,” CFRA analyst Arun Sundaram wrote in a note on Friday.
Beyond did share one bright spot for sales during the quarter: an international customer accelerated orders. The company did not disclose the customer’s name.
Beyond’s initial forecast for its third-quarter revenue disappointed investors when the company released it in early August. After soaring grocery sales last year during lockdowns, demand has fallen. At the same time, food service orders haven’t rebounded completely yet, even as restaurants operate at full capacity. Executives said last quarter that many eateries were being more conservative with their orders because they were unsure of the impact of the delta variant on business.
Beyond is expected to report its full third-quarter results after the bell Nov. 10.
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