Q2 2024 Traeger Inc Earnings Call Transcript
Key Points
- Traeger Inc (COOK) reported a strong second quarter gross margin of 42.9%, up 600 basis points compared to the prior year.
- The company increased its adjusted EBITDA guidance for fiscal year 2024 to $74 million to $79 million, reflecting a 15% increase at the midpoint compared to prior guidance.
- Grill revenues increased by 2% year-over-year, driven by successful promotional strategies that improved sell-through.
- Traeger Inc (COOK) saw a significant improvement in consumer demand for its grills during the second quarter, exceeding expectations.
- The company is expanding its distribution of consumables into the grocery channel, which is expected to drive convenience and growth.
- Second quarter sales declined by 2% compared to the previous year, with overall revenues at $168 million.
- MEATER, a part of Traeger Inc (COOK)'s accessories segment, experienced lower-than-anticipated sales, impacting overall accessories revenue.
- The international market, particularly in Europe, faced challenges with softer sell-through and excess inventories.
- Despite improved trends, the company remains cautious about consumer demand in slower seasonal periods due to the dynamic economic backdrop.
- The company experienced a decline in average selling prices (ASPs) due to a shift towards lower price point grills.
Hello, everyone, and welcome to the Traeger Second Quarter Fiscal 2024 Conference Call. My name is Carla, and I will be coordinating your call today. (Operator Instructions)
I will now hand you over to Nick Bacchus, Vice President of Investor Relations, to begin. Nick, please go ahead.
Good afternoon, everyone. Thank you for joining Traeger's call to discuss its second quarter 2024 results, which were released this afternoon and can be found on our website at investors.traeger.com. I'm Nick Bacchus, Vice President of Investor Relations at Traeger. With me on the call today are Jeremy Andrus, our Chief Executive Officer; and Dom Blosil, our Chief Financial Officer.
Before we get started, I want to remind everyone that management's remarks on this call may contain certain 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. We encourage you
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