Charlotte's Web by Stanley Brothers. Market leader in whole-plant hemp CBD extracts. . (CNW Group/Charlotte's Web Holdings, Inc.)

Charlotte’s Web swings to loss as pandemic weighs

Charlotte’s Web Holdings Inc. swung to a loss for the fiscal second quarter as it took a hit from Covid-19 store closures and production disruptions.

The company, which makes cannabidiol wellness products, posted a loss of $14.4 million, or 13 cents a share, compared with a profit of $2.2 million, or 2 cents a share, in the year-ago period.

Sales fell 13.3% to $21.6 million. Direct-to-consumer e-commerce sales, however, rose 33.6% and contributed 71.8% of revenue, the company said.

“Second-quarter revenue was below expectations due to the impact of Covid-19 on retail sales,” Chief Executive Deanie Elsner said.

The company said it has been certified as a B Corporation after the end of the second quarter.