COOK - Earnings call 4 2023

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Operator

Good afternoon, ladies and gentlemen. Thank you for joining today's Traeger's Fourth Quarter and Full Year 2023 Conference Call. My name is Tia, and I will be your moderator for today's call. [Operator Instructions].

I will now pass the call over to Nick Bacchus, Vice President of Investor Relations. proceed. Please

Nick Bacchus

be Officer. Thank and Traeger's which our Officer; Bacchus, Financial full this are and our everyone. its to were Andrus, Vice for website Jeremy on afternoon quarter our Dom the Relations and Chief fourth year can With President you of afternoon, I'm Executive at call joining Blosil, discuss released at Investor Good investors.traeger.com. on Traeger. Nick me found Chief XXXX today results, call

Before to I factors call annual XX-K that contain our are We are uncertainties, implied based other or report started, results December risks we XXXX, you remarks these herein. forward-looking the management's also differ for actual on of expectations, cause filings Investor substantial and current encourage of and to Form SEC discussion XX, are expressed everyone Relations get and website. materially remind to want our ended could portion those year uncertainties that on the our but may which this available to on a that subject statements on for review from

no revise of take You which to as these can reliance today, them or obligation undertake and forward-looking undue only update for any we information. statements, on should not new

companies. in measures from which our also Please we available which The website measures the and adjusted margin, herein debt, financial adjusted definition portion at that other contained EBITDA to useful will investors.traeger.com. measures, release, presented similarly including on margin adjusted share, per total measures of directly adjusted are non-GAAP net of most GAAP is call contain This Relations such are financial GAAP non-GAAP supplemental these loss, by metrics net certain differ the loss EBITDA, included reconciliations our measures adjusted titled comparable may net net of the believe and measures. note loss Investor earnings

Officer Executive Andrus, call of to over turn Chief Now to the I'd Traeger. like Jeremy

Jeremy Andrus

Thank will update everyone. quarter On will today's also performance strategic on perspective you, I give afternoon, an outlook to our Nick, financial on provide some against will call, our fourth turn our our provide and I discuss more and execution and good quarterly Dom XXXX. results the XXXX over to discuss to then financial guidance. our details for call our on I pillars.

our exceeding XXXX was in the soft high I position improved to high-ticket our navigate strategy to guidance. increase expectations our against of fourth household long-term to goods, challenging end our consumer full organization us against an versus EBITDA year the believe pleased important putting executed revenue for our Traeger, what drive substantially environment, demand a for backdrop am of plan our surpass and company with the strategic sales allowing is we adjusted year the our last to same the period year, penetration. with XX% and quarter up results current

would progress against they that it dramatically At along out first priorities evident gross the became shift results. mid-XXXX. laid with post-pandemic shifted and spending our near-term organizational for and fiscal grew XX% driving guidance were These enabled XXXX, approximately focus XX%, EBITDA Overall, initial midpoint on and respectively. better-than-expected the by our we margin in strategic has pressure by ranges consumer adjusted that that degradation exceeded on our versus of financial and we XXXX, X% revenue results time, EBITDA adjusted put

financial priorities and flexibility these improve we X profitability. communicated to Given ensure to pressures, tactical

all significant progress second, and margins. on We costs; reduce right X our drive channel sheet; strategic on in First, priorities third, in these made of size XXXX. and balance gross inventories

rate expenses by $XX expenses controlled Following million, which the implementation in plan operating than of our in savings mid-XXXX, cost tightly run were our XXXX. more reduced

quarter product. and improvement our ended end end much inventories, In down a at XXXX. XXXX of inventories substantial inventories positioned the balance Channel ranges to quarter of of our line targeted the appropriately the our too fourth with retailers fourth we sheet of had compared in year, the were versus with XXXX of $XX terms million when

year basis grew of beyond. XXX points to gross fiscal implemented in by we XXXX a margin to number we we XXXX, in and which expect gross expansion margin margin-enhancing Finally, contribute and initiatives,

and ticket believe down as over-indexed Despite Grill continue throughout high making during and financial believe back, was our industry trend on for we Grill improved drive range their the We Fourth business be product they below industry the faced to community friends. flexibility, XXXX. the already trend significant services on remained high consumers historical uniquely the love Traeger outdoors to for benefit single-digit return will favorite consumers industry and for the a away [indiscernible] our to that leisure market. that growth. consistent profitability an in we retail Americans cooking brand's cooking XXXX grill enjoying at the to year. durable solution firmly grill superior the pandemic goods at Core meal from Stepping home place, [indiscernible] engaged cooking experience, to our sell-through to ultimately progress [indiscernible] and initiatives shift prior from the and improve was spending believe outdoors of difficult with its quarter to innovative and accelerated and in positioned pandemic. cook We U.S. backdrop

portfolio It products fiscal we have is in XXXX. our revenues representing XX% of remember of accessories to of a also that consumables businesses important north with and

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Turning to XXXX year our fiscal outlook.

XXXX of Our end. decline X% the flat guidance million approximately a to adjusted of sales growth $XX of to million XXXX $XX high the year-over-year XX%. X% million represents to low growth of end EBITDA $XXX $XXX million at to represents at guidance

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continue industry the in Our to XXXX. outlook headwinds assumes experience will grill that

towards the that experiences, big-ticket from consumer we Specifically, Grills products shift wallet as XXXX. such home-related expect into will share continue services of and leisure in

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on X quarter like growth some the in our Next, as an to on to our I'd provide color well provide our strategic pillars on progress plans. update as fourth XXXX

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to an part remains our influencers generate community of millions and that social energy of impressions brand. network media important of drive our awareness and presence, Our and the ambassadors

Traeger content in amazing is the In engagement post certainly rib fourth viral a providing not the views year-round tips a The just went on roast, [indiscernible], on cooked December, Traeger. a community for incredible summer grilling Instagram Traeger making guide million demonstrates and device to our X.X is we posted outdoor solution. and holiday with that consumers quarter our ultimate a alone. strong as cooking by X viewed

Home Depot we and U.S., penetration positioning ending than retail the locations Traeger for Depot. Depot elevating our continued In strategy. across awareness at Traeger of chain. a the Traeger added The capped the Driving the XXX locations balance more fourth to is with year Traeger's doubling to Home Depot year fixtures QX, Island with in Home momentous merchandising number our more the the elevated quarter at outperform at of Islands core than the versus Islands another experience the Traeger X,XXX -- of Home XXXX. by the

of to many Islands merchandising our anticipated Depot complemented Traeger growth of the enhancements expect by in We initiatives. year have meaningful at Home other in another with merchandising XXXX

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we the season the as drilling next customer peak Near retail on months. over experience highly are focused we in execution field, and enter several term, particularly

On X, launched had today. Plus and and to We over and X on a strong with meat X strategy best to Our market, a cooking time period. distribution in locations. [indiscernible] significant with meater.com well with expand plans and we have available to outdoor XXXX, innovation the Plus the Meater X goes Plus Plus the season. we amazon.com, disrupting launch we second X holiday brings Meater for product Meater dual-channel the retail innovation. the distribution to believe thermometer wireless Meater November holiday launched growth it's performed consumers digital

On the rolled We standing continue R&D our in under structure out product we previously development product Traeger of EVP new team. new to organization the platform our a quarter, our build including side, out Engineering discussed function. recently fourth up

success long-term Our product is engine and development road a sustaining a outdoor engineering and to and innovation XXXX focused the on highly as focus our opportunities remains drive cooking area our map. key product to is product industry. in critical product cost-down behind our for team in new disruptor future innovator development, Investing of

In long-term XXXX, team in product doubled to our innovation. nearly commitment underscoring our size,

through pillar, quarter. Next, an our third in At revenues our I'll level, the provide consumer strategic driving update business. the consumables our pellets fourth business on remained healthy recurring

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we distribution look these independent the as into sales relationships meaningful upside to have to expect over grocery We channel. drive time

our consumables the On earlier barbecue we Depot. new side, which the we Home year this at improved sauces, food introduced relaunched and

to in reaction We see the improved pricing more competitive the and packaging, retail distribution been thus easy-to-use squeeze expect positive outlets additional to in has XXXX. far. bottle Consumer

the quarter at improved improvement. quarter, international in inventories, activity Thanksgiving Canadian improved final we markets as during in Black in and healthy. e-commerce with sell-through globally. markets we fourth Europe, Both and sell-through leaner In Friday. our business U.K., saw showed holiday In growth region. are strategic in Germany and the growth sequential well as sales the Home pillar channel Our [indiscernible] and Depot improved saw the was fourth October and In holiday replenishment Canada, have the solid expand which is fourth to direct

EU, Australia the activity selling impacted distributor markets negatively in continued Our were New destocking pressure. in Zealand resulting and by

We inventories. distributor to our expect markets as in to XXXX normalize inventories they international in clear continue excess

initiatives. strong is Thermomix Meaters thermometer integrates includes Vorwerk. quarter add-on app smart cooking This BXB international On Vorwerk cooking manufacturing the Meater both Meater distributor distribution the to Thermomix a very the multicooker and growth of and had guided providing into a driven fourth Thermomix is by Meaters side, multi-cooker that digital partnership the experience. with German the enhances

made revised guidance initiatives Overall, on in our and in our year key have XXXX exceeding progress fourth ended we significant quarter. strategic the the

cost our realigned are inventories recapturing progress gross have structure, We on and margin. demonstrating rightsized

the expect industry from to big-ticket key long-term likely adjusted factors headwinds wallet away shift control will pillars. in outdoor EBITDA share for we we continue to behind of cooking drive the term, investing can While create on near we focused are in our the while growth consumer and in order the goods

like enormous the Traeger long-term the call to Dom. their our in with turn season into potential head remains of efforts plan our for high I'd the the in XXXX. over thank And as as to we As peak selling that, ever. XXXX, brand confidence executing team my for I'll in

Dominic Blosil

and progress sales XX% particularly year-over-year, Jeremy, pleased that industry am with to made points. XXXX, our EBITDA up Thanks, we compared adjusted year. in afternoon, we EBITDA backdrop XXX the basis with our the given everyone. I difficult good Despite adjusted faced lower margin grew the during XXXX,

inventories believe are inventories the the and down year demand prior positioned versus channel we appropriately current ended XX% to inventories both sheet the balance our Our year outlook. and that

X% from gross In to the Consumables capital and will cash in quarter retailer $XX we prior to which $XX enhancing XXXX, from several position aggressive improved Shifting forward. lower $XX efficiencies. Fourth growth prices. XX% benefited generated increased were offset million. increased Grill million. for average unit driven destocking year. EBITDA revenues us prior volumes year, revenues margin XXXX, we going Grill up the quarter on we $XXX fourth we now revenue by executed expect to XX% selling working million flow Last, in margin revenue results. initiatives, by million, higher lap from to operations as

the Our material fourth the growth at XXXX. Accessories half a we of stronger-than-expected revenue XX% with meter by a $X by revenue to driven lapped year compared the growth. driven increased by customer Fourth ahead expectations the majority the $XX exceeded represents year by a of to million, declines label the full offering as strong revenues first quarter the improvement consumables and performance quarter large of private fully of introduction pellet guidance driven were in end million, modestly high our our by of upside range revenue Meater. have

which points mix which basis lapping business, of improved with prior higher five, by revenues year, achieved year, of of the negatively a chain driven XX.X% year. XXX by growth basis offset incurred margin in gross points Geographically, world prior North that impacted was inventory pricing, margin of basis in lower points; year. related was prior quarter American which grill basis compared December. in margins direct increased of and the gross of the by, profit XX%, two, obsolescence increased three, business costs basis points. XX basis million versus points; our benefited restructuring quarter revenues margin; up basis voluntary the and costs The costs gross by recall margin pellet capacity, the increase margin; mix, other three, by that strong restructuring to XX we XX.X% from basis quarter was which margin quarter million XXX the the XXX negatively fourth impacted XXX benefited Gross $XX in recall wholesale by to the from last impacted mill while basis our margin Gross drove $XX impacted points; or four, in points last drivers These to for XX one, driven to by XXX grill fourth rest Flatrock, Meaters XX.X% XXXX excluding contributed pellet one, in to positive optimization XXX related year which margin when by XX% internationally. our factors Flatrock import basis margin supply two, costs, were our by: worth fourth which negatively which of XXX margin points. margin four, points; points; fourth Please note negatively Griddle was profit of

and and variable fourth expenses in was Sales driven expense, fourth expense. The million $XX administrative were higher $XX and higher million were year. $XX fees The last professional last compared of demand driven $XX costs to and by service to increase expense the compared million stock-based creation the lower increase million year. in offset quarter employee by marketing compensation expenses by quarter was increased General Meater. at

in was net Net as year. to a As was a year. $X for diluted net fourth or net for million loss the loss in in last million period loss per diluted loss of the a share $X.XX million per per last factors, year. quarter compared loss these of $X.XX to as result the of the share share adjusted $X.XX of or million quarter diluted compared of $X.XX to $XX quarter $XX fourth compared same Adjusted net quarter of the $XX last loss was fourth

by was allowing year. exceed EBITDA $X us same in of expectations, fourth EBITDA to approximately quarter our as full million Adjusted to end the the of $XX was compared million modestly period quarter our adjusted $X high last ahead Fourth the year million. in guidance

and at fiscal the on were the the to equivalents of debt. fourth million long-term million ended the We of to cash with year. end sheet. of $XX the Moving compared end previous million $XXX quarter, balance quarter At cash $XX the fourth

We liquidity. last net million total at materially of end the company million, As of down financing with of $XXX million compared of under $XXX total had quarter. of $XX million million. we quarter, the the agreement, million at of the end $XXX the year $XX and when of debt to receivables the the end up was fourth in Inventory of drawn to the at in the ended year relative quarter liquidity the end end had last $XXX quarter year resulting $XX fourth third the million its

the with demand. and significant levels progress aligned inventories in pleased am to balance are made I sheet XXXX believe inventory with appropriately we our rightsize

levels. inventories, quarter In year to fourth the our in a of are terms targeted position hand substantially channel on a of relative partners ago ended at and inventory weeks improved with retail

guidance me let XXXX our operating Next, around year full assumptions. discuss our context provide and some

year, of flat to to XXXX. to million, $XXX to X% the revenue $XXX or we guiding For down million are approximately compared

Our outlook that top will expect negative; by remains some shift are away generally are half informed planning growth on is following first, griddle, the we our of our the sales lapping of second, big line pressure load-in continue will and in in consumer the which Grills ticket home-related industry themes: that we first Flatrock grill Ironwood from XXXX the create comparison. our and XXXX, year-over-year new expenditures

Additionally, be of a to in negative launches we of contributor in a revenue growth. number grills also the our [indiscernible] second expect which product XXXX, half, will ahead expected

grill our low direct the our high margins by anticipating These driven revenue to result driving program, import expansion transportation in selling Finally, higher in gross wholesale expectation prices, that for year of lower declines XXXX. are grill our decline a are in average we single double-digit but full partially from factors selling prices in costs. which lower results

our factors am up pleased with meaningfully year which XX% initiatives. of is year points XXX by grow to gross basis as XXXX. expecting to compared internal ability in I driven macro margins well both XXXX, full XXX XX% to for as We are margin to gross being XXXX, full

costs substantially terms in their inbound moderated external transportation In peak have since XXXX. of drivers,

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we Additionally, the we initiatives gross XX margin see expect implemented to months. last from expansion in

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expect we to From a back first the stronger of timing gross margin gain compared in the half year year-over-year half. the perspective,

versus We adjusted to adjusted million. to XXXX represents expect This year basis XX.X% to margin full of XX.X% EBITDA $XX an points XXX or XXXX. XX EBITDA up of $XX million

We as growth offset gross be margin, anticipated as XXXX annualize expect and expense pillars by behind will we by that certain deleverage in some margin invest key investments XXXX. adjusted EBITDA driven in expected we strategic the from gain in

we to XXXX, of of of are quarter XXXX. which decline QX X% million, X% first $XXX $XXX a to of the represents versus revenue anticipating For million

EBITDA quarter of $XX We to are first $XX million anticipating adjusted million.

expected second are sales shift negatively by shipments be quarter. quarter of timing First to the into a impacted the in

had guided Overall, versus with plan I execution am with originally XX% our against growing adjusted by and substantially the our XXXX. than pleased ending in EBITDA to XXXX year better we

forward. we spend, in gross planning cautiously, entering the going gains top have given line expected XXXX While pressure are positioned we in inventories sheet channel on and significant ticket on the balance are continued margins are big healthy with and year to

over expect Operator? invest I'll value, We EBITDA. remain highly call our us the with to while Traeger. in believe strategy for drive well initiatives I that, will making our turn growth the And positions into operator. this to the confident thesis long-term extremely us allow our I in and adjusted to gains

Operator

first Alexander Morgan with The comes from of Instructions] [Operator question Megan Stanley. line the

Megan Christine Alexander

on then more and to just you with about seeing and grill Dom, what spring retailers get doing season, that how I to is sell-through related inventory? was talked import? context change Or trended selling quarter, more season us there into are hoping the you is the maybe a with in give taking second maybe you're the just your direct during -- how that you we expectations? some can now shift, start And could as relative for demand into holiday

Dominic Blosil

Megan. the question, for Thanks Yes.

expecting. sell-through our quarter, slightly generally we're the were if met expectations So what not, we I'd above in say that

measured tracking still we're prior by So how really happy XXXX. with line though sell-throughs roughly with even as in year stabilized, they're have

'XX. informs we the really how items, demand ticket forecast is fundamental keep underpinning takeaway the think here in they that's the really of XXXX from measure still a to forecasting for over high I And we're fact down over the and we really of underpinning pressure I there key although So expect that shifts forecast course think on of our And may each how the negative of of quarter in we decline be do the year. some in the be terms . course quarter-to-quarter, grills demand year. right? expect

I to HX half. think at decline some respect think comp nuances and/or HX. in play a see in up that with quarters I there's that forecast maybe splitting addition is which it a maybe dynamic a larger to second the negative between first on And to half, and we unique sell-through the have fact

the we're inventory forecasting that some in load-in of we last launched XXXX. of down So build in ultimately and we new comping a year. we're launch SKUs sales bleed to end-of-life HX, of that And plan new in of then ahead product HX, products

to we're have contribute of to decline is So onetime ultimately address I and now on comp grill those sales what good of reported a greater we that just compared kind in that is and items again think based news. which nuances forecasting what are These to as X sort are dynamics. through, sell

piece third the is then really ASP. around And

prices which levels. volumes the across deliberate grills pressured volumes, we're are what volumes to to better we change unit those brought pre-pandemic is to a ASP, connected by seeing portfolio to relative our in back part pricing strategy of So being performance dollar where in dollar

correspondingly, contracts unlock talking optimize how pools a as investments. in margin, chain And X these uplift and we gross operational about grows, gross an some business. Additionally, That's structured. it business how is see profit across excellence just take our to that does import which are ASP And of lot direct been margins. we've we supply

in this retailer the does in gross in margin. we're but at come that the of chain. some profit In pool it cost ASP, of sharing turn, So a lift supply can our essence, unlock we scale

So that's really play. at the dynamic

Megan Christine Alexander

you're Okay. managing trying Got business. how the bigger guess, helpful. then just to And really understand That's maybe about picture, I thinking it.

somewhat been of than your industry. challenges terms given You've in top just candid funnel constrained the of marketing, in the

end bit? So you think through maybe a after up back to allowing being if marketing funnel some the and the top and does whether you take bottom expect, the reinvest to how look we and just into it go you'd upside about and than should first letting of share business to better that it category flow line deleverage

Dominic Blosil

good question. ahead. let I'll you why follow Yes, that? don't A hit Jeremy Go on. Sure.

Jeremy Andrus

I can over really to meaningfully long-term last continued years to been disruption. good and are around all, growth as important longer in capital the a we've business lead development, couple That's say, is thesis intact, time which product first are things to keep that of we pipeline. scarce, continued working of the has think invest a that there that We've in feel about invest investment.

we will marketing. lean see start to turn In tailwinds, terms industry slowly continue of marketing we as [indiscernible] into and thinking about reinvestment, we to to invest brand in headwinds

penetration As in low brand those awareness awareness, about with we high end we household have most we opportunity penetration, in have high have that markets think unaided we the where markets.

fairly ability the fairly because would sufficient fairly of we we I that in in turn pivot is a have in quickly don't return extent a to returns time, something at can the but get the marketing So and changing we on are quickly that -- say are we then of hurry we into our funnel near-term on top environment. period moment to it's we know reinvest that this in time, not we investment to believe

Operator

Canaccord. McNamara line from comes with question of next Brian The the

Brian McNamara

in investors color -- what older should and what and down little provide of particular, is this your in more be getting you Can XXXX? Is SKUs being on this bleed of ahead in for the typical a excited new phased out XXXX? product launches will

Dominic Blosil

within cycle typical our strategy. context it's the product Yes, of life

not of incremental product And the product. the those that adjustment a old of an also will We've of we and balance launching, if launched strategy. SKU methodically inventory of you And since the of X if the strike down with of between too beginning at we're points, and/or see it's doing we're similar at balancing don't been goal we're bleed a starving SKU when in and down so typically, not our we a -- certain corresponding we strategy price much managing product dynamics. time, ensuring fairly our this is new sort there's but demand, this to to left we're of bleed innovations with an sort pretty situations, kind wouldn't good new sort part introducing

the then channel product, product, and yes, down, no to kind to that in when that are inventories of point bleed we of SKUs so for launched that in-channel managing where have to And for we life. ideally, at left inventory while demand start protect new -- we'll we obviously, minimal production those we're a up ramp end

Brian McNamara

I single guess the get XX% your to year, to year. you what, last I expect gross be down, and were down expected to doubles question high is like sales Yes. this low

company. grill a are You

like of So is expectation I you this kind year. to see growth would feel flat up kind the of

maybe So outlook annual in your revenue the that's your and could quantify XXXX your you on embedded kind how of expectation guidance? influence market grill what's for declines in

Dominic Blosil

Yes.

the year year, where on our excess our the category excess showing than in sales a our nuances puts standpoint. dynamic of to of some down above a first grill that's second some that what's forecast from that, So where the bleeding nuance grills which category ultimately half XXXX. modeling load-in the the half the down we in be comping to standpoint sort into pressure forecast or are forecast or in product sell-through/category demand and inventory, larger we're are from a sell-in then X into from we're decline the which built creating last forecasting declines And in model, is built in

Operator

next the Baird. Kleber question comes The Justin Instructions] [Operator with of line from

Justin Kleber

I wanted to market First, trends. share try just assess to

high 'XX. mentioned at singles down was grill You industry in retail

Just curious to how sell-through? that your compared

Jeremy Andrus

Yes.

So And we that and about quarterly of relatively that on on track think done flat believe, this industry and think going as share based about we reports is the drives what and basis. we And first the in years how all, Traeger that, forward. is of something year terms in work this a we've growth share. we

lean years, X we of relatively will and as funnel back that combination back funnel are marketing top in have in spend. on our and will launched the during top remain these the that is products as they pipeline, growth many expectation we some the of Our of before pre-pandemic but drive factors And share share of pulled flat.

Justin Kleber

Got it.

in of kind we season. shape. I question plans year just could just as given versus This the hoping promotional years, grill few a the better year, pandemic? then that should industry inventories the multipart kind across approach at operated full then the bigger maybe to to all ability how a you structural intensity, guys you grilling changes be kind expect of past talk last the to is think broader sell kind do of the less picture, promotions. in was much given there at the peak prior to promotional on of activity price, about And Okay. your relative And will industry promotional we

Jeremy Andrus

It's industry question. been certainly The couple the last a of good over has promotional years. more

used, be can brand premium a for promotions Traeger that is like belief [indiscernible]. but Our

that healthy and during once We have working from again XXXX are channel them the on year. We periods inventories inventories promotional channel level deviated as typically X healthy inventories, getting had [indiscernible] balance sheet are we were in healthy. cadence

And intent that's promotional return our more and well. so cadence, our to traditional in we in as XXXX XXXX,

Operator

of Group. The comes Joe from question the with Telsey next Feldman line Advisory

Joseph Feldman

mean type 'XX? growth should how double-digit and as really think I I'm strong some XXXX. Meaters Or expect the kind had we just of with wanted that run thoughts about share And same you could to low in again ask, product. in there? of I we new should maybe late accessories some wondering,

Jeremy Andrus

we're robust, a both has as businesses have business, Dom alluded Meater strong say to grower. would accessory and comments, our and been accessories accessories. guiding But I consumable in specifically I been our not to Look,

X As many we that launch. that successful Meater is Plus, was launched we've I even product, pre-acquisition. which mentioned, in working the something on -- years, a very there's a been of innovation lot for It

over mix an in are business, them, that provides but accessories perspective, of our So nice a them margin and product lean we believe important that, drive time. a diversification, from and part to it's opportunity to continue into invest

Joseph Feldman

guys, Got what Are still more -- the on for they fully note grills from with then note you to and are gravitating And they're with to it. towards anything That's those newer product the buying? shopping that items? regard featured anything helpful. buying to the the product, customers .

Dominic Blosil

I'll Yes, go Jerry. jump ahead, I in on can that.

reception grills more we been normally innovations above over kind seeing for big kind we our directionally, That as we what are items. So of that which points connected think unconnected mean, innovations. on of pressure on a still watch on I is just there's been mix I said, bit seen, evolve price key we're earlier for comments than premium from see has pressure little these our between time. ticket $X,XXX strong. the grills to And appetite consistent the and And with just the continuing continued

to base where I installed now our And innovation. is grill indexing certainly, basis. the more on case over a that's embedding connected quarter-to-quarter we're the think

there's think I a so for And growing innovations. appetite

see kind pressure been, just there. seeing I ticket above of we're has of We But reception some strong consumer to, $X,XXX items? aligned around continue there as think, in again, big to late, broader what the

Operator

at There questions this you. time. Thank concludes no are Instructions] That call. today's additional [Operator conference

You your lines. now may disconnect

Traeger (COOK) 7 Mar 242023 Q4 Earnings call transcript