Key Takeaways
Traeger Inc. (NYSE: COOK) reported a 34 percent drop in first-quarter revenue as sales of its grills declined, but the company raised its full-year profit outlook after receiving a significant tariff refund.
"Sell-through is the clearest signal of where the business is headed and of a healthy retail environment," Jeremy Andrus, Chief Executive Officer at Traeger, said on the company’s earnings call, noting that underlying consumer demand was stronger than the headline revenue number suggested.
First-quarter revenue fell to $94 million from $142.4 million a year earlier, slightly missing analyst estimates. Net income was $3 million, or $1.08 per share, compared to a net loss of $1 million in the prior-year period, beating consensus expectations for a loss. The results included a $12.4 million benefit to gross profit from an IEPA tariff refund.
The company’s cost-reduction program, dubbed Project Gravity, continued to yield results, delivering $15 million in year-over-year operating expense reductions and helping to lower inventory by 31 percent to $88 million. The program is part of a multi-year effort to simplify the business and improve margins, with Traeger expecting to realize approximately $50 million in value from the project in 2026.
Grill revenue fell 45 percent to $47 million, while consumables revenue decreased 14 percent to $26 million. Accessories revenue, which includes the MEATER smart thermometer, declined 22 percent to $21 million. Management noted that MEATER remained a "soft spot," with pricing and inventory actions under review.
Looking ahead, Traeger raised its full-year adjusted EBITDA guidance to a range of $57 million to $67 million, up from a prior forecast, reflecting the tariff refund. The company maintained its full-year revenue guidance of $465 million to $485 million. To capture more price-sensitive consumers, Traeger launched its Westwood grill at a $599 price point and plans to introduce its Irontop griddle lineup starting at $499.
The guidance raise suggests management is confident in its cost-control measures and new product strategy to navigate a challenging consumer backdrop. Investors will watch the second-quarter results to see if the new lower-priced products can accelerate sell-through during the peak summer selling season.
This article is for informational purposes only and does not constitute investment advice.
