Traeger (COOK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $168.5 million, down 1.8% year-over-year, with grill revenues up 2.0% and accessories down 8.8%; gross margin expanded by 600 basis points to 42.9%.

• Net loss narrowed to $2.6 million from $30.2 million, while Adjusted EBITDA rose 24.9% to $27 million.

• Promotional strategies and strong consumer response at lower price points drove improved sell-through and replenishment.

• Full-year 2024 guidance for revenue, gross margin, and Adjusted EBITDA was raised, supported by operational efficiencies and robust consumer demand.

• General and administrative expenses fell 41.8% due to lower stock-based compensation, offset by higher legal costs.

Financial highlights

• Q2 2024 revenue: $168.5 million (down 1.8% year-over-year); grill revenue up 2.0% to $95 million, accessories down 8.8% to $39.7 million, and consumables down 3.1% to $33.8 million.

• Gross profit increased to $72.3 million from $63.3 million year-over-year; gross margin improved to 42.9%.

• Adjusted EBITDA was $27 million (15.9% margin), up from $21 million (12.5% margin) year-over-year.

• Adjusted net income was $7.3 million, or $0.06 per diluted share, versus an adjusted net loss of $4 million last year.

• Cash and equivalents were $18 million at quarter-end, with total liquidity of $175 million and net debt of $409 million.

Outlook and guidance

• FY 2024 revenue guidance raised to $590–$605 million.

• Gross margin outlook increased to 40.5%–41.5% for the year.

• Adjusted EBITDA guidance raised to $74–$79 million, a 15% increase at midpoint over prior guidance.

• Grill revenues now expected to be flat year-over-year, improved from prior guidance of a high single- to low double-digit decline; accessories outlook reduced due to MEATER underperformance.

• Existing liquidity and credit facilities are expected to be sufficient for at least the next twelve months.