By Connor Hart
Sow Good shares fell to a 52-week low after the freeze-dried candy and treat maker swung to a third-quarter loss, hurt by a halt of shippments and quality concerns stemming from a distribution blunder.
The stock plummeted 51% to $4.76 in midday trading Thursday, marking a slight rebound from its earlier low of $4.21. Shares are down 55% since the beginning of the year.
The Irving, Texas, company reported a net loss of $3.4 million, or 33 cents a share, compared with a profit of about $334,000, or 7 cents a share, in the same quarter a year earlier.
Revenue fell 29% to $3.6 million, missing the $6.6 million that analysts surveyed by FactSet were expecting.
Chief Executive Claudia Goldfarb said the company was forced to pause shipments during the quarter due to heat-related quality concerns.
"Unfortunately, some melted products reached shelves, impacting short-term sales velocity," she said. "Moving forward, we are implementing temperature-controlled distribution to prevent similar issues next summer."
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 14, 2024 11:59 ET (16:59 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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