NYSE$COOK

Traeger Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Traeger's financial performance was negatively impacted by macroeconomic conditions and changes in consumer spending behavior.

Traeger reported a decrease in total revenues by 6.0% to $200.3 million. The company experienced a net loss of $132.3 million, which included a non-cash impairment charge of $111.5 million. Adjusted EBITDA was $17.9 million.

  • Total revenues decreased by 6.0% to $200.3 million.
  • Gross profit margin decreased by 240 basis points to 36.7%.
  • Net loss was $132.3 million, including a non-cash impairment charge of $111.5 million.
  • Adjusted EBITDA was $17.9 million.

Headline financials

Total Revenue

$200M

Previous: $213M-6.0%
EPS (adj)

$0.04

Previous: $0.15-73.3%
Gross Margin

36.7%

Previous: 39.1%-6.1%
Adjusted EBITDA

$17.9M

Previous: $26.9M-33.5%
Sales & Marketing

$43.8M

Previous: $47.3M-7.4%
G&A Expenses

$28.9M

Previous: $24.8M+16.5%
Capital Expenditures

-$12.4M

Previous: -$11.2M-10.4%
Free Cash Flow

-$145M

Previous: -$16.2M-795.7%
Net Income

-$132M

Previous: -$4.91M-2595.7%
Operating Income

-$120M

Previous: $2.94M-4182.4%
Gross Profit

$73.5M

Previous: $83.3M-11.8%
Cash & Equivalents

$13.6M

Previous: $75.3M-81.9%
Total Assets

$1.11B

Previous: $1.12B-0.8%
Stock-Based Comp

$12M

Previous: $1.55M+673.5%

Revenue & EPS history

Traeger · Revenue · Quarterly

$200M

Q2 2022-6%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Traeger · $200M total across 3 segments · Q2 2022

  • Grills
    $118M-24.6%
  • Consumables
    $42.1M+2.2%
  • Accessories
    $40.5M+158.0%

Forward guidance

The company is reducing its full year guidance due to lower than anticipated results in the second quarter, the impact of ongoing macroeconomic pressures on consumer sentiment, and an expected reduction in replenishment order activity as retailers seek to reduce channel inventories.

Tailwinds

  • Cost optimization initiatives are expected to generate annualized cost savings of $20 million.
  • The Company has adjusted production levels to better align finished goods manufacturing with the reduced demand outlook.
  • The Company is working with its retail partners to reduce channel inventories.
  • A Gross Margin Task Force has been formed to identify savings across the supply chain.
  • The Company expects to begin to realize benefits from these initiatives beginning in 2023.

Headwinds

  • Total revenue is expected to be between $640 million and $660 million.
  • Adjusted EBITDA is expected to be between $35 million and $45 million.
  • Lower than anticipated results in the second quarter.
  • Ongoing macroeconomic pressures on consumer sentiment.
  • Expected reduction in replenishment order activity as retailers seek to reduce channel inventories.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.0%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-6.6%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+32.6%

Q2 2024

Best reaction

-20.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.3%-8.8%+36.6%
Q4 2025-20.3%-20.8%-20.3%
Q3 2025-12.5%-2.0%-21.1%
Q1 2025-2.7%-10.1%-6.8%
Q4 2024+0.9%-15.7%-31.0%
Q3 2024-0.6%-5.5%-4.3%
Q2 2024+32.6%+27.9%+61.4%
Q1 2024+4.3%+0.0%+8.7%
Q4 2023-8.5%-2.2%+4.0%
Q3 2023-20.6%-25.0%-24.0%
Q2 2023+32.1%+29.8%-1.8%
Q1 2023+28.8%+20.3%+46.3%
Q4 2022+13.0%+22.5%+13.9%
Q3 2022-17.0%+2.9%-22.9%
Q2 2022+11.3%+5.4%-6.5%
Q1 2021+30.2%+35.4%-1.6%
Q1 2022+4.1%+9.3%-14.6%
Q4 2019+4.4%+1.4%-12.6%
Q4 2021-15.8%-20.6%-29.8%
Q3 2020-16.0%-25.9%-34.9%
Q3 2021-16.0%-25.9%-34.9%
Q2 2020-9.7%-10.9%-21.7%
Q4 2020-9.7%-10.9%-21.7%
Q2 2021-4.0%-11.6%-20.0%
Q1 2020

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