Shares of The Chefs' Warehouse Inc., which distributes specialty food products, tumbled in premarket trading on Tuesday after the company said poor weather in the Northeast and Midwest hurt results during the holiday season. The company said it expects fiscal 2013 results to be below guidance.
Chefs' Warehouse said late Monday it expects fiscal 2013 net income of 80 or 81 cents per share, excluding one-time items, on revenue of $670 million to $673 million.
Previously the company said it expected net income of 88 cents 91 cents per share on revenue of $660 million to $680 million. Analysts expect 82 cents per share on revenue of $672.9 million, according to FactSet.
Its shares fell $3.31, or 12.1 percent, to $24 in light premarket trading.
The company said weather hurt results but acquisitions such as Allen Brothers in December helped offset that. The Polar Vortex sent extreme cold air into the Northeast and Midwest in the key holiday season of November and December. Jefferies analyst Mark Wiltamuth estimates sales growth was 1 percent to 2 percent versus his 6.3 percent estimate.
Meanwhile, The Chef's Warehouse reported that an employee at its Michael's Finer Meats unit made incorrect adjustments to the subsidiary's inventory balances, which resulted in an overstatement of inventory and understatement of cost of goods sold. Chefs' Warehouse will take a charge of 2 cents per share in the fourth quarter of 2013 to correct the misstatements. The employee has been fired.
Chefs' Warehouse plans to report fourth quarter results for the fiscal year ended Dec. 27 in late February.