Vintage Wine Estates stock falls over 40% amid inventory issues

Vintage Wines Estates (纳斯达克(NASDAQ):VWE) stock slid over 40% at its daily lows on Wednesday after offering a light forecast, declining profits, and inventory management issues.

While the Nevada-based wine-seller beat on the headline EPS andrevenue figures for its fiscal fourth quarter, gross profits declined $11.1M year over year to just $38K. The company also recorded a $14.7M loss for the quarter and a near-tripling of operating losses from the prior year to $27.7M. A $19.1M non-cash inventory adjustment was blamed for the losses in the quarter.

“We are now diligently applying this focus and intensity in our financial processes in order to remediate our material weakness,” CFO Kristina Johnston said. “We have instituted improved accountability metrics, updated assumptions for overhead absorption processes better reflecting the current business and created greater discipline around timeliness in reporting throughout the organization. The implementation of more stringent processes drove the adjustments in inventory, but we expect this will also drive greater transparency and better future results for the company."

Moving forward, the company forecast between $300M to $310M in revenue for the 2023 fiscal year. Analysts had expected $330.36M,according to SeekingAlpha data.