By Katherine Hamilton

Franklin Covey shares slid after the company reduced its fiscal-year outlook and swung to a loss in the fiscal third quarter due to government cuts and trade policies.

The stock declined 6%, to $22.70, in after-hours trading Wednesday. At market close, shares were down 36% this year.

The company, which helps other businesses train employees, said macroeconomic uncertainty, trade tension and canceled contracts with the U.S. government weighed on its revenue in the third quarter and had prompted it to lower guidance.

Franklin Covey revised its full-year revenue outlook to a range of $265 million to $275 million, down from $275 million to $285 million. That is the second outlook cut for the company, which lowered guidance in April as well.

Sales in the third quarter fell 9%, to $67.1 million, missing the $67.4 million analysts were expecting. The company's enterprise division, in particular, was affected by macroeconomic trends.

The Salt Lake City company swung to a loss of $1.4 million, or 11 cents a share, in the third quarter, compared with a profit of $5.7 million, or 43 cents a share, the year before.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

July 02, 2025 17:58 ET (21:58 GMT)

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