By Connor Hart

Shares of Holley fell after the company cut its sales outlook for the year and said its first-quarter results were hurt by temporary headwinds, such as higher-than-typical inventory levels and poor weather.

The stock was down 19%, to $2.68, in premarket trading Wednesday. Shares had lost more than a fifth of their value over the past three months through Tuesday's close, despite being up 86% over the past 52 weeks.

The automotive-parts company said before the bell that it now expects full-year sales of $610 million to $640 million, down from a previous view of $625 million to $655 million. Analysts polled by FactSet had expected sales of $639.5 million for the year.

Chief Executive Matthew Stevenson said the first quarter began with several temporary headwinds. "Distributor inventory levels were elevated entering the period, and while normalization was expected through improved sell-through, severe winter weather in late January and early February 2026 disrupted retail activity," he said.

Stevenson noted, though, that purchasing patterns improved throughout the quarter and that Holley exited the period on stronger footing.

For the first quarter, Holley reported a profit of $7.26 million, or 6 cents a share, up from $2.82 million, or 2 cents a share, a year earlier.

Stripping out certain one-time items, earnings were 5 cents a share. Analysts polled by FactSet expected adjusted earnings of 6 cents a share.

Sales fell 3.7% to $147.3 million, missing Wall Street models for $154 million.

Looking forward, Chief Financial Officer Jesse Weaver said early trends in the second quarter indicate healthier inventory levels at the company's distribution partners, as well as improving order activity.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 06, 2026 08:56 ET (12:56 GMT)

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