Vintage Wine Estates (NASDAQ: VWE), a top wine producer in the U.S. with a direct-to-consumer platform, was on an upswing in pre-market trading after the company announced that preliminary FY23 revenues were projected to be $290 million, with a gross margin range of 30% to 32%. The company intends to simplify its business and reduce its stock-keeping units (SKUs) to improve fulfillment execution. Its gross margin is likely to expand by 700 basis points in FY24.
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Jon Moramarco, Interim CEO, commented, “Through our identified actions, we expect to reduce annualized SG&A by more than 15%. The savings are from a combination of personnel savings, improvement of freight lanes, elimination of certain professional fees, and more focused advertising spend. Fiscal 2024 will be a year of transition, and while we expect revenue to decline, we plan for margins to measurably improve.”
Separately, the company also announced the appointment of Seth Kaufman as President and CEO, who is likely to join the company on October 30, 2023.
VWE stock has declined by more than 65% year-to-date.
