Traeger Inc (COOK) Q3 2024 Earnings Call Highlights: Strong Grill Sales Propel Revenue Growth ...

GuruFocus.com11-08

Revenue Growth: Increased by 4% to $122 million. Grill Revenue: Increased 32% to $75 million. Gross Margin: Expanded by 440 basis points to 42.3%. Adjusted EBITDA: Improved to $12 million from $5 ...

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(TGPX Holdings I LLC)","start_time":0,"source_url":"https://finance.yahoo.com/news/traeger-inc-cook-q3-2024-190110197.html","article_id":"2481342160","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481342160","pubTimestamp":1731006070,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue Growth: Increased by 4% to $122 million.Gross Margin: Expanded by 440 basis points to 42.3%.Adjusted EBITDA: Improved to $12 million from $5 million last year.Net Loss: $20 million, compared to $19 million last year.Adjusted Net Loss: $7 million or 6 per diluted share.Consumables Revenue: Decreased by 11% to $23 million.Accessories Revenue: Decreased by 31% to $25 million.Cash and Cash Equivalents: $17 million at the end of the third quarter.Inventory: $105 million at the end of the third quarter.Fiscal Year 2024 Revenue Guidance: Updated to $595 million to $605 million.Fiscal Year 2024 Adjusted EBITDA Guidance: Raised to $78 million to $81 million.Full Year 2024 Gross Margin Outlook: 41.8% to 42.3%.GuruFocus has detected 1 Warning Sign with COOK.Traeger Inc  reported a 4% revenue growth in the third quarter, driven by a 32% increase in the grills category.Traeger Inc  reported a 20% increase in unaided brand awareness compared to 2022, indicating strong brand health and consum","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"COOK":"Traeger Inc. (TGPX Holdings I LLC)"},"translate_title":"Traeger Inc(COOK)2024年第三季度收益看涨期权亮点：强劲的烤架销售推动收入增长……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"COOK":1},"content_text":"Revenue Growth: Increased by 4% to $122 million.\nGrill Revenue: Increased 32% to $75 million.\nGross Margin: Expanded by 440 basis points to 42.3%.\nAdjusted EBITDA: Improved to $12 million from $5 million last year.\nNet Loss: $20 million, compared to $19 million last year.\nAdjusted Net Loss: $7 million or 6 per diluted share.\nConsumables Revenue: Decreased by 11% to $23 million.\nAccessories Revenue: Decreased by 31% to $25 million.\nNorth America Revenue: Increased by 10%.\nRest of World Revenue: Decreased by 40%.\nCash and Cash Equivalents: $17 million at the end of the third quarter.\nTotal Net Debt: $399 million.\nInventory: $105 million at the end of the third quarter.\nFiscal Year 2024 Revenue Guidance: Updated to $595 million to $605 million.\nFiscal Year 2024 Adjusted EBITDA Guidance: Raised to $78 million to $81 million.\nFull Year 2024 Gross Margin Outlook: 41.8% to 42.3%.\n\n\nWarning! GuruFocus has detected 1 Warning Sign with COOK.\n\nRelease Date: November 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nTraeger Inc (NYSE:COOK) reported a 4% revenue growth in the third quarter, driven by a 32% increase in the grills category.\nThe company achieved a significant improvement in profitability, with gross margin expanding by 440 basis points.\nTraeger Inc (NYSE:COOK) raised its fiscal 2024 financial guidance, expecting sales between $595 million to $605 million and adjusted EBITDA of $78 million to $81 million.\nThe company experienced strong consumer demand during the Labor Day promotion, leading to better-than-expected sell-through and replenishment sales.\nTraeger Inc (NYSE:COOK) reported a 20% increase in unaided brand awareness compared to 2022, indicating strong brand health and consumer engagement.\n\n Negative Points \n\nThe accessories category experienced a decline, with revenues decreasing by 31%, primarily due to lower sales at Meter.\nConsumables revenues declined by 11% in the third quarter, attributed to a shift in revenue pacing.\nThe company faces challenges in the consumer demand backdrop, which remains mixed, particularly for big-ticket and home-related goods purchases.\nTraeger Inc (NYSE:COOK) noted a reduction in average selling prices for grills, partially due to a mix shift towards lower-priced products.\nThe company anticipates continued pressure on Meter's e-commerce sales, impacting the accessories category in the fourth quarter.\n\n Q & A Highlights \nQ: Can you provide clarity on the implied guidance for grills in the fourth quarter and the shift in growth from Q3 to Q4? A: Dominic Blosil, CFO, explained that while Q3 saw strong grill growth, this is not expected to hold sequentially into Q4. The growth will moderate, but they still expect some marginal growth in grills. This is largely due to strong sell-through in Q2 and Q3, partly driven by a successful Labor Day promotion.\nQ: How is the competitive landscape in the pellet market, and are you seeing any shifts? A: Dominic Blosil noted that while competition in pellets has been present for years, there hasn't been a significant shift in the landscape. Traeger believes their brand loyalty and the quality of their pellets, which are vertically integrated, provide a competitive edge.\nQ: What are your thoughts on the grill category's recovery and the outlook for 2025? A: Dominic Blosil mentioned that the grill category is down slightly year-to-date but believes it has found the bottom. They expect 2025 to be a better year for the category, driven by factors like lower interest rates and increased housing transactions, which could stimulate demand.\nQ: How are you planning to manage gross margins and potential reinvestment in marketing as the market recovers? A: Dominic Blosil stated that while they are seeing improvements in gross margins, they plan to reinvest in marketing based on long-term financial models and guardrails. They aim to ensure profitability and sustainable growth without exceeding these guardrails.\nQ: Can you discuss the impact of tariffs on your supply chain and any mitigation strategies? A: Dominic Blosil explained that while 80% of grills are manufactured in China, tariffs currently only affect accessories. They are diversifying manufacturing to Vietnam and exploring other options in Asia and Mexico to mitigate tariff risks. They have built optionality into their sourcing model to react efficiently to changes in tariffs.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481342160"}