Shares of Celsius Holdings Inc. (NASDAQ:CELH) are trading lower Thursday morning as investors weigh management’s cautious commentary regarding ongoing core-brand volume pressure and margin headwinds.
- Celsius Holdings stock is showing weakness. Why is CELH stock trading lower?
Barclays Conference Presentation Highlights Near-Term Growth Strain
The recent selling follows presentations by Chief Executive Officer John Fieldly and Chief Financial Officer Jarrod Langhans at the Barclays 19th Annual Global Consumer Staples Conference on September 8.
While management outlined a long-term strategic shift toward execution across its expanded three-brand platform, comprising Celsius, Alani Nu and Rockstar within PepsiCo’s distribution network, they acknowledged near-term demand strain on the flagship Celsius line. Management cited heavier promotional activity, higher freight costs, and inventory rebalancing across retail and club channels.
Addressing recovery initiatives, Fieldly emphasized targeted marketing investments: “We’re completely focused on getting Celsius back to growth. Innovation will slowly start to roll out in the first half of the year as retailers are resetting, but we’re also making strategic investments behind the Celsius portfolio… leveraging these tentpole programs and wiring that we’re wiring in through the key accounts is going to also drive additional velocity growth and loyalty.”
Q2 Top-Line Miss Weighs on Sentiment
The presentation potentially reinforced investor caution stemming from Celsius’s second-quarter financial report released on August 6. During the second-quarter, total revenue rose 11% year-over-year to $817.9 million, missing Wall Street consensus estimates of $872.6 million, as sales of the core Celsius line fell 12%.
Diluted net income dropped to 14 cents per share from 33 cents per share in the prior-year period, impacted by distributor termination fees associated with the Alani Nu transition and an $85 million legal accrual tied to an ongoing royalty dispute.
CELH Shares Fall Thursday
CELH Price Action: Celsius Holdings shares were down 1.74% at $27.16 at the time of publication on Thursday, according to Benzinga Pro data.
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