Traeger, the renowned grill manufacturer, has announced its financial results for the first quarter. Despite a decrease in units sold due to a decline in consumer demand, the company managed to achieve higher-than-expected revenue. This was made possible through additional price hikes, which helped offset the decline in sales volume.
Financial Performance
In the first quarter, Traeger reported a net profit of $8 million, or 7 cents per share. This is a significant improvement compared to a loss of $9 million, or 8 cents per share, during the same period last year. Stripping out one-time items, the company’s earnings per share stood at 4 cents. Analysts had predicted adjusted earnings per share of only 1 cent, making this a positive surprise for investors.
Revenue Highlights
While revenue witnessed a decline of 32% to $153.2 million, it managed to surpass analysts’ expectations of $152.6 million. Earlier, on March 31, Traeger had set a revenue guidance range of $145 million to $155 million. Despite the challenging market conditions, the company was able to deliver results at the higher end of this range.
The drop in revenue can be attributed to a 40% decrease in sales of grills, which generated $89.7 million in revenue during the first quarter. The decline in volume, along with retailer destocking and reduced consumer demand, continued to impact the company’s sales performance.
CEO’s Statement
Traeger’s Chief Executive, Jeremy Andrus, acknowledged the difficulties faced by the company due to lower consumer demand and retailer destocking. However, he remains optimistic about the future and is focused on finding innovative strategies to drive growth and increase market share.
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