RBC Capital analyst provided their outlook on Traeger, Inc. (NYSE:COOK) ahead of the company’s upcoming Q4 earnings announcement tomorrow after the market close, noting they still expect fundamental pressure.
The analyst expects Q4 net sales of $120.7 million (vs. Street’s $118.5 million) and EBITDA of -$5.1 million (vs. Street’s -$2.6 million). According to the analysts, the economic environment continues to be difficult for discretionary items, which will continue to impact the company’s sell-in (as retailers destock) and sell-through (as demand remains moderate).
While these pressures are expected to last through H1/23 and delay margin recovery, the outlook for H2/23 is slightly better given that the company will lap retailer destocking efforts and benefit from easing input costs.
Overall, the analysts remain on the sidelines until there is greater clarity regarding retail inventory levels and macro factors impacting the grilling category.