Traeger (COOK) investor relations material

Business overview and recent performance

• Premium grill and cooking platform company with strong brand investment and market share gains since the mid-2000s.

• Post-pandemic challenges include category pullback and tariff headwinds, with revenues down year-over-year due to pricing shifts.

• Focus on profitability, with Project Gravity targeting $30M in annual cost savings and supply chain optimization.

• Sell-through at retail remains strong, supported by brand investment and promotions.

Tariff impact and supply chain strategy

• Tariffs have led to a blended rate in the low 30% range, prompting price increases and cost management initiatives.

• Mitigation efforts include pricing, supply chain diversification (accelerating shift from China to Vietnam), and operational discipline.

• Tariffs are seen as a short-term challenge but may lead to long-term industry consolidation and improved discipline.

• Supply chain shifts are complex due to technical requirements and long-term partner relationships.

Market dynamics and consumer trends

• Industry volumes remain below 2019 levels due to pandemic demand pull-forward and sluggish housing market.

• High ticket, durable goods face headwinds from low housing transactions and high interest rates.

• Brand holds market share with 3.5% household penetration; opportunity exists in low-awareness regions, especially the East Coast.

• Replacement cycle of five years expected to provide a future tailwind.