Why Boston Beer Stock Was Sliding Today

Shares of Boston Beer (NYSE: SAM) were falling today after the maker of Sam Adams and Truly hard seltzer reported disappointing bottom-line results in its fourth-quarter earnings report and offered weak guidance for 2023. Gross margin in the quarter increased from 28.7% to 37%, but that improvement was primarily related to weak results in the quarter a year ago from an unanticipated decline in hard seltzer sales. Chairman and founder Jim Koch said, "Although near-term trends remain challenging because of the hard seltzer category's trajectory, we have strong brands across multiple segments, the top sales force in beer, and a highly cash-generative business with a strong balance sheet."