Traeger Stock Down Almost 16% After Grill Maker Predicts Sales Drop

Traeger Inc.’s stock is down almost 16% in early trading Thursday (March 24) after the grill maker said in a Wednesday (March 23) press release that it’s anticipating lower sales for fiscal 2022 because of inflation, lower customer confidence and tighter margins.

Traeger lost $33.7 million in the fourth quarter of fiscal 2021, compared to a $3.3 million loss in Q4 of fiscal 2020. The company’s revenue for the latest quarter, meanwhile, was up 30.8% year-over-year to $174.9 million.

“Full-year guidance reflects a moderation in year-over-year sales growth driven by comparing against two years of accelerated retail activity and the impact of inflationary pressures and geopolitical turmoil on consumer sentiment and discretionary spending, as well as gross margin pressures due to global supply chain challenges,” Traeger said in a statement.

Traeger expects sales between $800 million and $850 million for fiscal 2022, less than FactSet’s expectations in the $955 million range. That includes sales between $208 million and $212 million for Q1, less than FactSet’s $255 million projection.

“While we are projecting lower-than-typical growth in 2022, our strong multiyear growth CAGR and market share gains give us confidence in our long-term opportunity to grow household penetration and to disrupt the grilling category,” said Chief Executive Jeremy Andrus in the company statement.

Related: From Grill Academies to New Stores and More D2C, Weber Moves to Dampen Inflation Headwinds

In February, outdoor grill maker Weber announced a plan to increase both physical and digital connectivity with its global customer base with the introduction of new products and efforts to grow its direct-to-consumer (D2C) and eCommerce initiatives.

The company brought on 10 celebrity chefs to launch its Ambassadors program, and increased its digital tutorials and social outreach, such as its Burning Questions blog. Weber is also deepening its ties with existing retailers serving different customers, including outdoor recreation chain REI, local hardware stores, Best Buy and large multi-category sellers including Canadian Tire, Amazon and Costco.