Black Rifle Coffee slumps 30% after cutting FY rev forecast

BRC

08/08/2024 16:39

** BRC Inc's  BRCC.N  shares slump as much as 29.5% to $3.82
on Thurs after co lowered FY rev forecast
    ** BRCC shares on course for biggest one-day decline since
their 2022 debut
    ** Veteran-founded coffee seller late Weds reduced 2024 rev
guidance to $385-$415 mln from $430-$460 mln prior
    ** Q2 rev of $89 mln, down 3% yr/yr, was below LSEG estimate
of $101 mln
    ** "While our headline growth in the quarter did not meet
our expectations, business development efforts in our wholesale
business continue to gain steam and will drive material growth
over the next 12-18 months," CFO Steve Kadenacy said in
statement
    ** Co expects its coffee products to be in "almost every
significant grocery chain" by end-2025 "despite delayed
refreshes at a few of these chains muting near-term revenue
growth in the quarter," Kadenacy added
    ** Co reiterated FY adj EBITDA guidance of $32-$42 mln
    ** With move on Thurs, BRCC shares up ~6% YTD
    ** But stock well off record peak of $34 hit in Apr 2022,
two months after completing SPAC merger

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))