Traeger (COOK) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Business overview and recent performance

• Focus on disruptive innovation in outdoor cooking, growing from $70M to ~$600M in 11 years.

• Post-pandemic period has been challenging, with shifts in consumer behavior and industry softness.

• Q2 saw grill revenue growth and a 600 basis point increase in gross margin year-over-year.

• EBITDA grew 25% despite a 2% sales decline, leading to a 15% midpoint guidance increase.

Drivers of Q2 performance and promotional strategy

• Strong brand engagement and community focus supported sales.

• Strategic promotions, including a full-size grill at $389, drove demand.

• Promotional pricing remained above industry average, maintaining premium positioning.

• Promotions were timed with industry norms, especially around Father's Day.

• Expectation to return to traditional promotional cadence as macro conditions stabilize.

Product innovation and future growth

• Significant investment in product development, doubling the product team in two years.

• Innovation cascades from high-end to accessible price points; new launches planned for spring next year.

• Retail partners have previewed upcoming products under NDA.

• Product launches generate brand excitement and support broader sales.