: Retailers are trying to clear out Traeger’s grills, and it’s hurting sales and its stock


Shares of Traeger, Inc. COOK, -9.73% fell sharply Wednesday after the grill maker said retailers’ efforts to clear unwanted goods from their inventories would weigh on full-year sales. Chief Executive Jeremy Andrus said in a statement that he believed “the macro environment will remain highly dynamic through the end of the year with our retail partners continuing to reduce inventory levels in the fourth quarter,” adding that he expected full-year results to come in at the low end, or “slightly below” prior forecasts. Traeger said it expected full-year sales of between $635 million and $640 million, compared with a forecast for between $640 million and $660 million given in August. Shares fell 8.4% after hours. For the third quarter, Traeger reported a net loss of $210.4 million, or $1.75 a share, compared with a net loss of $89.2 million, or 78 cents a share, in the same quarter last year. Sales slid 42.1% to $93.8 million, compared with $162 million in the prior-year quarter. Adjusted for things like goodwill impairment, stock compensation and restructuring costs, Traeger lost 21 cents per share. Analysts polled by FactSet expected an adjusted loss of 20 cents per share, on revenue of $86 million. Andrus also said sales for the third quarter came under pressure, as “as macroeconomic uncertainty continued to weigh on the consumer” and retailers rushed to clean out stockpiles of unsold goods. Retailers this year have been cutting prices on items like clothing and appliances, as rising prices force more consumers to cover grocery expenses.

This article was originally published by Marketwatch.com. Read the original article here.

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