NEW YORK - SodaStream (SODA) says it isn't winning over enough new customers in the U.S. and reported preliminary sales results that fell short of Wall Street expectations.
CEO Daniel Birnbaum says the Israeli company's U.S. business underperformed because of lower-than-expected demand for the company's soda makers and flavors. While it has successfully established a base of repeat users in the U.S., Birnbaum said SodaStream isn't attracting new users at the rate the company would like.
The company said revenue for the third quarter is expected to be about $125 million. Analysts had expected $153.6 million, according to FactSet.
Birnbaum says the company has shifted its focus to play up SodaStream's "health and wellness" benefits.
SodaStream shares declined $5.69 - or 21 percent - to $21.88 at 11:06 a.m. ET Tuesday.