By Exec Edge Editorial Staff
Traeger, Inc. (NYSE: COOK), which sells wood pellet grills, reported a rise in its consumables business in the second quarter amid current shifts in consumer behavior and sentiment.
Revenue from consumables including pellets, rubs and sauces rose 2.2% from a year earlier as the segment remains a strong complement to its core grill business, the company said in a statement. Traeger is reducing expenses, rightsizing inventories, and increasing efforts to drive gross margin.
The company’s gross margin was 36.7%, down 240 basis points from a year earlier. Total revenues decreased 6.0% to $200.3 million, it said.
Connected cooking data shows consumers remain engaged and are grilling at a similar pace as in 2021. Brand awareness continues to grow in core markets, and remains a significant long-term opportunity for the company, it said.
“We are taking proactive and immediate steps to drive profitability and financial flexibility, including a cost reduction plan which we expect to drive $20 million in annualized savings,” Jeremy Andrus, CEO of Traeger, said in the statement. “We are anticipating a challenging second half of 2022 as macroeconomic pressures continue to weigh on consumer demand and as our retail partners reduce channel inventories.”