Traeger, Inc. Q2 2025: Navigating Contradictions in Pricing, Market Trends, and Inventory Management

Pricing strategy and supply chain diversification, market conditions and consumer behavior, inventory management and tariff exposure are the key contradictions discussed in Traeger, Inc.'s latest 2025Q2 earnings call



Tariff Mitigation and Impact:
- Traeger expected the unmitigated impact of tariffs to be approximately $60 million in fiscal 2025.
- The company believes its mitigation efforts will offset about 80% of this impact, with efforts including supply chain efficiencies, cost negotiations, and pricing strategies.

Revenue and Earnings Challenges:
- Second quarter revenues were down 14% versus prior year, with grill revenues declining 22% and adjusted EBITDA at $14 million.
- The declines were attributed to pacing shifts and temporary shifts to domestic fulfillment due to tariff-related dynamics.

Cost Savings and Restructuring:
- Traeger implemented a reduction in force and closed MEATER's headquarters, expected to drive approximately $30 million in run rate cost savings once fully implemented.
- The company aims to drive long-term efficiencies and reshape its P&L through the Project Gravity initiative.

Price Increases and Consumer Response:
- Traeger increased prices to offset tariff costs, acknowledging potential negative impact on grill volumes.
- Despite price increases, the company noted positive unit sell-through growth and continued consumer demand for entry-level grills.

Guidance and Future Outlook:
- For fiscal year 2025, Traeger guided to revenues of $540 million to $555 million, down 8% to 11% versus the prior year, with adjusted EBITDA guidance of $66 million to $73 million.
- The outlook reflects assumed pressure on grill volumes due to price increases and continued softness in accessories revenue.