Tear Sheet: Traeger Inc.

Traeger raised its guidance due to stronger-than-expected grill demand fueled by increased promotional spending. Traeger?s revenue declined 1.8% year over year in the quarter ended June 30,2024, which was a sequential improvement from the 5.4% decline in the previous quarter. We expect revenue will return to growth in the second half of the year as retailers start to replenish inventory for the upcoming holiday season and spring sell-in for the 2025 summer season. Additionally, retailers remain cautious in their reordering patterns, which could prevent the company from generating positive free operating cash flow (FOCF) in 2025. Traeger?s S&P Global Ratings-adjusted leverage for the 12 months ended June 30, 2024, was 6.4x, down from 7.1x the previous quarter. We expect leverage

...October 3, 2024 Traeger Inc. performed in line with our expectations and recently revised upward its revenue and EBITDA guidance for 2024, but demand remains uncertain for 2025. Traeger raised its guidance due to stronger-than-expected grill demand fueled by increased promotional spending. Traeger's revenue declined 1.8% year over year in the quarter ended June 30,2024, which was a sequential improvement from the 5.4% decline in the previous quarter. We expect revenue will return to growth in the second half of the year as retailers start to replenish inventory for the upcoming holiday season and spring sell-in for the 2025 summer season. However, the risk remains that consumer demand could remain subdued. Additionally, retailers remain cautious in their reordering patterns, which could prevent the company from generating positive free operating cash flow (FOCF) in 2025. We project credit measure will continue to improve. Traeger's S&P Global Ratings-adjusted leverage for the 12 months...

Full Report