Traeger stock falls more than 11% after grilll maker calls for leaner sales this year


Shares of Traeger Inc. COOK, -4.56% fell more than 11% in the extended session Wednesday after the grill maker reported fourth-quarter results above Wall Street expectations but guided for lower sales, saying it is feeling the pinch of inflation, dimmer consumer confidence and thinner profit margins. Traeger said it lost $33.7 million, or 29 cents a share, in the quarter, compared with losses of $3.3 million, or 3 cents a share, in the fourth quarter of last year. Adjusted for one-time items, Traeger lost 3 cents a share. Revenue rose 31% to $175 million, the company said. Analysts polled by FactSet expected the company to report a loss of 6 cents a share on sales of $157 million for the quarter. Traeger guided for 2022 sales between $800 million and $850 million, contrasting with FactSet expectations around $955 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,” the company said in a statement. It guided for first-quarter revenue between $208 million and $212 million, compared with FactSet expectations around $255 million. “While we are projecting lower than typical growth in 2022, our strong multi-year growth CAGR and market share gains give us confidence in our long-term opportunity to grow household penetration and to disrupt the grilling category,” Chief Executive Jeremy Andrus said. Traeger stock ended the regular trading day down 4.6%.

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