Traeger, Inc. reported Tuesday that total revenue for the second quarter decreased 1.8 percent year-over-year (y/y) to $168.5 million, compared to $171.5 million in the second quarter last year.

“Our second quarter results reflect our strong efforts over the last two years to drive increased efficiencies in our business and demonstrate our team’s ability to execute in a dynamic environment,” said Jeremy Andrus, CEO, Traeger. “During the quarter, consumer demand for our grills exceeded expectations, driving growth in grill revenues and leaving channel inventories in a healthy position as we head into the second half of the year. Moreover, we once again delivered outstanding gross margin expansion during the quarter which contributed to a significant increase in Adjusted EBITDA versus the prior year.”

Grills revenue increased 2.0 percent y/y to $95.0 million in Q2, compared to the second quarter last year. The increase in revenue was said to be primarily driven by increases in volume partially offset by decreases in average selling price. Higher unit volume was driven by effective promotional activity and strategic pricing actions on select grills. The decrease in average selling price was primarily due to mix shift to lower priced grills, strategic pricing action on select grills, and higher mix of direct import sales.

Consumables revenues decreased 3.1 percent y/y to $33.8 million in Q2, compared to the second quarter last year. The decrease was reportedly driven by a reduction in wood pellet average selling price and volume in addition to decreases in food consumables average selling price, partially offset by an increase in volume of food consumables.

Accessories revenues decreased 8.8 percent y/y to $39.7 million in Q2, compared to the second quarter last year, a decline that was said to be driven primarily by lower sales of Meater smart thermometers.

North America revenue declined 4.6 percent y/y in the second quarter compared to the prior-year Q2 period. Rest of World revenues increased 31.9 percent y/y in Q2 compared to the prior-year period.

Gross profit increased to $72.3 million, compared to $63.3 million in the second quarter last year. Gross profit margin was 42.9 percent of sales in the second quarter, compared to 36.9 percent in the comparable period last year. The increase in gross margin was reportedly driven primarily by favorability from freight and logistics costs, optimization of operations, and favorable foreign exchange rates.

Sales and marketing expenses were $28.2 million in Q2, compared to $27.9 million in the second quarter last year. The increase in sales and marketing expense was reportedly driven by increased investment in brand awareness and increased employee related costs partially offset by reduced professional fees.

General and administrative expenses were $30.5 million in Q2, compared to $52.4 million in Q2 last year, a decline said to be driven by lower stock-based compensation expense of $25.9 million, which was primarily due to the cancellation of the unearned CEO PSUs and IPO PSUs in the comparable prior-year period. The decreases were partially offset by higher costs related to legal matters.

Net loss was $2.6 million, or 2 cents per diluted share, in the second quarter, compared to a net loss of $30.2 million, or 25 cents per diluted share in the second quarter of last year.

Adjusted net income was $7.3 million, or 6 cents per diluted share, in Q2, compared to Adjusted net loss of $4.5 million, or 4 cents per diluted share, in the second quarter last year.

Adjusted EBITDA was $26.8 million in the 2024 second quarter as compared to $21.5 million in the comparable period in 2023.

Balance Sheet

Cash and cash equivalents at the end of the second quarter totaled $18.0 million, compared to $29.9 million at December 31, 2023.

Inventory at the end of the second quarter was $91.0 million, 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 $590 million and $605 million
  • Gross Margin is expected to be between 40.5 percent and 41.5 percent
  • Adjusted EBITDA is expected to be between $74 million and $79 million

A reconciliation of Adjusted EBITDA guidance to Net Loss on a forward-looking basis cannot be provided without unreasonable efforts, as the company is unable to provide reconciling information with respect to provision (benefit) for income taxes, interest expense, depreciation and amortization, other income, stock-based compensation, non-routine legal expenses, and other adjustment items all of which are adjustments to Adjusted EBITDA.

Image courtesy Traeger, Inc.