Whirlpool's Q1 2025: Navigating Contradictions in Tariffs, Pricing Strategies, and Direct-to-Consumer Growth
Earnings DecryptTuesday, May 13, 2025 11:09 am ET
2min read
Tariff impact and market dynamics, pricing actions and impact on margins, tariff impact and competition, pricing and cost actions, direct-to-consumer growth are the key contradictions discussed in Whirlpool's latest 2025Q1 earnings call.
Revenue and Margin Performance:
- reported a 2% organic net sales growth for Q1 2025, excluding currency and Europe transaction impacts.
- The company delivered a Global EBIT margin expansion of 160 basis-points year-over-year, driven by pricing actions and cost takeout.
North America Market Dynamics:
- The MDA North America business experienced flat net sales year-over-year, despite a challenging macro-environment due to consumer confidence decline and inventory loading by foreign competitors.
- The segment achieved an EBIT margin of 6.2%, supported by pricing actions and cost takeout.
Tariff Impact and Mitigation Strategies:
- The company anticipates an approximately 250 basis points tariff impact in 2025, which they plan to offset through pricing actions and supply sourcing changes.
- The new tariff policies are expected to level the playing field for U.S. appliance manufacturers, benefiting with its large U.S. production footprint.
Strong Asia and SDA Global Performance:
- The MDA Asia business saw a 16% net sales growth year-over-year, with a 7% EBIT margin and 240 basis points margin expansion from cost takeout.
- SDA Global achieved significant net sales growth of 10% year-over-year, driven by strong direct-to-consumer sales and high-growth potential categories.
WHR Total Revenue YoY, Total Revenue
Revenue and Margin Performance:
- reported a 2% organic net sales growth for Q1 2025, excluding currency and Europe transaction impacts.
- The company delivered a Global EBIT margin expansion of 160 basis-points year-over-year, driven by pricing actions and cost takeout.
North America Market Dynamics:
- The MDA North America business experienced flat net sales year-over-year, despite a challenging macro-environment due to consumer confidence decline and inventory loading by foreign competitors.
- The segment achieved an EBIT margin of 6.2%, supported by pricing actions and cost takeout.
Tariff Impact and Mitigation Strategies:
- The company anticipates an approximately 250 basis points tariff impact in 2025, which they plan to offset through pricing actions and supply sourcing changes.
- The new tariff policies are expected to level the playing field for U.S. appliance manufacturers, benefiting with its large U.S. production footprint.
Strong Asia and SDA Global Performance:
- The MDA Asia business saw a 16% net sales growth year-over-year, with a 7% EBIT margin and 240 basis points margin expansion from cost takeout.
- SDA Global achieved significant net sales growth of 10% year-over-year, driven by strong direct-to-consumer sales and high-growth potential categories.
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