Weber CEO details ‘huge competitive advantage’ for grill brand with U.S. production

·Anchor, Editor-at-Large
·2 min read

Weber's secret weapon in its most recent quarter is one they have relied on time and time again to perform well in periods of high supply chain stress (such is the case now).

Making more grills and components where the products end up being sold, says Weber CEO Chris Scherzinger.

"We are the only major grill brand who makes our own grills and do it locally in the continent," Scherzinger said on Yahoo Finance Live.

Weber operates three manufacturing facilities in Illinois that handle metal fabrication, welding, stamping and coatings. The company has a plant in Europe that does similar operations, and one was just opened in Poland.

Explains Scherzinger, "Our strategy is make where you sell, and that's really unique in the grilling space. Frankly, it's unique in much of the consumer durables space. So we are not relying on China or Vietnam to supply all of our goods. In a world like we live in today where there are so many supply chain challenges, and getting ocean containers and navigating significant inflation from an ocean transport standpoint, having local manufacturing gives us a big competitive advantage in trying to insulate consumers from commodity increases or macro trends that might be unfavorable. It's a substantial lever for us in the business."

The focused supply chain helped Weber grow sales 30% for its fiscal year ended Sept. 30. Adjusted net income rose 28% from a year ago.

Here is how Weber performed compared to Wall Street estimates for the most recent quarter:

  • Net Sales: $350.2 million vs. $337 million

  • Diluted EPS: loss of 13 cents a share vs. a loss of 18 cents a share

Weber shares fell 5% to $18.92 in Wednesday's session. But the stock recovered some ground in after-hours trading. 

The grill maker debuted on the New York Stock Exchange on Aug. 5, after being priced at $14. Shares hit a record high of $19.55 on Aug. 9.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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