Celsius Holdings (NASDAQ:CELH) just took a massive hit, reporting a 31% plunge in Q3 revenue year-over-year, dropping to $265.7 million. The trouble? North American sales tanked, stealing the spotlight from an otherwise impressive 37% growth internationally. Investors weren't pleasedthe stock nosedived 11% today, with many pointing to an aggressive inventory optimization move by Celsius's main distributor as the culprit. This overhaul may have stabilized, but it left a mark, cutting down quarterly order volumes and squeezing margins.

• Warning! GuruFocus has detected 2 Warning Sign with CELH.

Despite the turbulence, Celsius is showing serious resilience on key fronts. Online sales with Amazon soared 21%, hitting $27 million as consumer demand remains steady for this lifestyle energy brand. CEO John Fieldly reassured investors, framing the distributor's adjustment as part of a larger plan to fuel long-term growth. Still, promotions and incentives ate into the gross profit margin, sliding it down from 50.4% to 46.0%. The company's strategic outlook remains intact, with eyes on expanding its consumer base and pushing further into new market segments.

And Celsius isn't just sitting back. In a bold move, they've acquired Big Beverages, a long-time co-packer, to boost manufacturing firepower and accelerate innovation cycles. This acquisition sets Celsius up for faster, more agile production, a critical step given the current market dynamics. Adjusted EBITDA might be down 96% this quarter to just $4.4 million, but Celsius is betting big on this play to cement its position as a heavy hitter in the energy drink world, aiming to lock down North American dominance and ramp up international momentum as the supply chain dust settles.

This article first appeared on GuruFocus.