LaCroix maker stock crashes, CEO blames 'injustice' and compares work to 'caring for someone who has become handicapped'
National Beverage Corporation (FIZZ), the owner of the LaCroix, reported disappointing earnings results and subsequently blamed "injustice.”
The sparkling water brand reported earnings per share of 53 cents, well below forecasts for 76 cents. The same period a year ago, the company delivered earnings per share of 88 cents.
Shares of National Beverage Corporation fell 13% on the earnings release.
“We are truly sorry for these results stated above,” CEO Nick Caporella said in a statement. “Negligence nor mismanagement nor woeful acts of God were not the reasons – much of this was the result of injustice!”
Caporella bizarre explanation for the disappointing results continued.
"Managing a brand is not so different from caring for someone who becomes handicapped,” he said. “Brands do not see or hear, so they are at the mercy of their owners or care providers who must preserve the dignity and special character that the brand exemplifies. It is important that LaCroix’s true character is not devalued intentionally − in any way."
Revenue for the quarter came in at $220.89 million, down about 3% from the same period a year ago.
“Additionally, gross margins were impacted by volume declines," Caporella continued, "Comparisons were further skewed by the adoption of the new tax act in the third quarter of the prior year, which included credits and rate reduction adjustments aggregating $11.3 million. Nothing herein mentioned has detracted from the ultimate value and future of our dynamic company.
Caporella remained sure that consumers will continue to buy LaCroix.
"There is no greater passion than the kind that creates the wonderful refreshment and contentment described as unique! No doubt, the sound and personality of the word LaCroix, coupled with the awesome experience of its essence and taste... is unique. One can be induced to purchase by cheapening price or giving away a product, but falling in love with a feeling of joy is the result of contentment. Just ask any LaCroix consumer ... Would you trade away that LaLa feeling? ‘No way, they shout – We just love our LaCroix!’ I am positive they respond this way each and every time."
More competitors have jumped on the flavored sparkling water trend, from the big soda companies to grocery stores with their private-labeled brands.
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.
