Q1 2024 Traeger Inc Earnings Call Transcript
Key Points
- Traeger Inc (COOK) reported first quarter sales of $145 million and adjusted EBITDA of $24 million, both at the high end of guidance.
- The company achieved a significant 700 basis points of gross margin expansion, reaching a quarterly gross margin of 43%, the highest since becoming a public company.
- Traeger Inc (COOK) has seen four consecutive quarters of gross margin expansion, driven by improvements in cost environment and company-specific initiatives.
- Despite a challenging demand environment, the company reaffirmed its financial guidance for fiscal 2024, indicating confidence in its strategic plans and execution.
- Traeger Inc (COOK) was named one of the most innovative companies by Fast Company, highlighting its commitment to disrupting the outdoor cooking industry.
- First quarter revenue declined by 5% year-over-year, with grill revenue down 14% due to lower sell-through at retail and a lower average selling price.
- Consumer demand for grills remains soft, with a shift in consumer spending away from durable goods like grills, which were over-indexed during the pandemic.
- The company is facing pressure on higher Average Selling Price (ASP) skews from a sell-in perspective, comparing against significant load-in from the previous year.
- Traeger Inc (COOK) anticipates that consumer demand for grills will remain soft for the balance of the year, assuming a challenging market environment.
- Net loss for the first quarter was $5 million, although this was an improvement from a net loss of $11 million in the first quarter of the previous year.
Good afternoon, everyone. Thank you for joining Traeger call to discuss its first quarter 2024 results, which were released this afternoon and can be found on our website at investors.traeger.com, and Nick Bacchus, Vice President of Investor Relations and Treasurer. With me on the call today are Jeremy Andreas, our Chief Executive Officer, and Dan Palazzo, our Chief Financial Officer.
Before we get started, I want to remind everyone that management's remarks on this call may contain forward-looking statements that are based on current expectations but are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein.
I encourage you to review our annual report on Form 10-K for the year ended December 31, 2023 for quarterly report on Form 10-Q for the quarter ended March 31, 2024 on files and our other SEC filings for a discussion of these factors and uncertainties, which are also available on the Investor Relations portion of our website. You should not take undue
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