Traeger, Inc. saw total revenue for the third quarter increase 3.7 percent to $122.1 million, compared to $117.7 million in the third quarter last year.

Grills revenue increased 32.5 percent to $74.9 million year-over-year. The increase was primarily driven by unit volume growth partially offset by a reduction in average selling prices. Higher unit volume was driven by “effective promotional activity and strategic pricing action on select grills.” The decrease in average selling prices was primarily due to a mix shift to lower priced grills, a higher mix of direct import sales, and strategic pricing action on select grills.

Consumables revenue decreased 11.2 percent year-over-year to $22.5 million in the quarter. The decrease was primarily driven by a reduction in wood pellet unit volume and a reduction in food consumables unit volume. Lower wood pellet and food consumables unit volume was reportedly due to seasonal ordering shifts.

Accessories revenue decreased 31.3 percent year-over-year to $24.6 million in the third quarter. This decrease was reportedly driven by lower sales of Meater brand smart thermometers as well as unit volume reductions in Traeger branded accessories.

North America revenue increased 10.4 percent year-over-year in the third quarter. Rest of World revenues decreased 40.1 percent in the third quarter compared to the prior-year third quarter.

Income Statement Summary
Gross profit increased to $51.7 million, or 42.3 percent of revenue, compared to $44.7 million, or 37.9 percent of revenue, in the third quarter last year. The increase in gross margin was driven primarily by favorability from freight, logistics, and other supply chain costs.

Sales and marketing expenses were $26.2 million in Q3, compared to $25.9 million in Q3 last year. As a percentage of sales, sales and marketing expenses were down 60 basis points yer-over-year.

General and administrative expenses were $24.1 million in the third quarter, compared to $24.8 million in the third quarter last year. As a percentage of sales, general and administrative expenses were down 130 basis points year-over-year.

Net loss was $19.8 million in the third quarter, or a loss of 15 cents per diluted share, compared to net loss of $19.3 million, or a loss of 16 cents per diluted share, in the third quarter of last year.

Adjusted net loss was $7.4 million, or 6 cents per diluted share, compared to $14.3 million, or 12 cents per diluted share, in the third quarter last year.2

Adjusted EBITDA was $12.3 million in the third quarter compared to Adjusted EBITDA of $4.7 million in the third quarter last year.

“Traeger delivered third quarter results which were ahead of our expectations and which demonstrate our team’s commitment to execution,” commented CEO Jeremy Andrus. “Strong sell-through of our grills drove upside in our replenishment sales in the quarter, resulting in a 32 percent increase in our grills revenues. Furthermore, we continue to see significant gross margin expansion, which drove meaningful growth in Adjusted EBITDA in the quarter. Our results are allowing us to increase our financial guidance for the year once again. We believe our progress on driving efficiencies in the business over the last two years positions us well to deliver growth and shareholder value, in particular as our innovation pipeline accelerates into next year and beyond.”

Balance Sheet Summary
Cash and cash equivalents totaled $16.9 million at quarter-end, compared to $29.9 million at December 31, 2023.

Inventory $105.1 million at quarter-end, compared to $96.2 million at December 31, 2023.

Guidance For Full Year Fiscal 2024
Based on year-to-date performance and its outlook for the rest of the year, the company is updating its total revenue, gross margin and Adjusted EBITDA guidance for Fiscal 2024.

  • Total revenue is expected to be between $595 million and $605 million;
  • Gross Margin is expected to be between 41.8 percent and 42.3 percent; and
  • Adjusted EBITDA is expected to be between $78 million and $81 million.

Image courtesy Traeger