COOK - Earnings call transcript Q1 2024

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Nicholas Bacchus

Good afternoon, everyone. Thank you for joining Traeger's call to discuss its first quarter 2024 results, which were released this afternoon and can be found on our website at investors.traeger.com. I'm Nick Bacchus, Vice President of Investor Relations at Traeger. With me on the call today are Jeremy Andrus, our Chief Executive Officer; and Dom Blosil, our Chief Financial Officer.

Before we get started, I want to remind everyone that management's remarks on this call forward-looking statements that are based on current expectations but are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein.

quarter review ended report quarterly of other December Form available for Investor to for Form report the SEC you XXXX, on uncertainties, XX-Q year XX, website. which discussion our the XX, the factors filings encourage for our and portion of on annual XX-K on once a I filed, March these our and ended Relation XXXX, also a are

speak undue for You of on reliance only should statements update them as We forward-looking revise take any to undertake not today. these information. or new

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

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

Jeremy Andrus

our joining an we'll results, quarter and pillars. Thank update growth Thank you we'll on our first you, Nick. for earnings Today, provide discussing call. first be quarter our strategic

of pleased range. demand sales I'm to the and detail quarter, end our our on million, EBITDA backdrop, Despite our the further a to provide $XX handing adjusted the call challenging Dom guidance million, $XXX over Before quarterly performance. execution high were facing was first with in

year, our financial results give guidance us for the and are we reaffirming XXXX. quarter prior Our fiscal comp outlook first for

long-term innovative position the and to that of brand The Traeger's a our strong, quarter, to our remains in cooking. a product. through strategic with underlying gainer I delighting and focus in move believe share continue outdoor imperatives on our of measures for be continue consumers we health As driving Energen key we to

of partners the of experience Our retail. be alongside at us into very and invest retail supportive consumer to continue [indiscernible] brand

The be NPS in current social our engagement grill continue to I company Traegerhood, well our and premium to an industry-leading as believe benefit the the from our our community of positioning in media that efforts will evidenced Trader channels strong as by score. enthusiast eventual recovery as growth in industry. passionate allow disproportionately our

to from the prior below perspective, As environment sell-through remained and continued in durable be first during [indiscernible] believe consumer we categories demand to year. like soft the the quarter. our product pandemic. goods away the From shift demand spend indexed consumer continues grills We anticipated, the on a over other

X see From quarter, greater first on which grills of prior a tied we higher year, perspective, to in new load-in the particular, pressure In launch will this the sell-in in the pressured also ASP sales significant gain we SKUs. year.

We consumer are soft for the demand grills for this of assuming year. remains that balance

the consumer first season The peak summer. a Memorial and of our the through terms period Grills and last in typically slower is Day till demand of selling at seasonally for end retail quarter

company. we drive years efficiency. XX% our versus efforts basis quarter, in the margin reported first margin lower driven focused margin in quarter we XXX the This adjusted quarter and several holiday year-over-year, as last growth last seasonal pleased important we quarterly significant gross and enhance In Therefore, represents key QX months, our of ability into margin the sales public first basis on points. and very periods. by I will over am through gross second of greater adjusted to period by was XX% benefit This our the XXX year, execution above the points grew and most quarter highest margin as visibility profitability our EBITDA with grew a to results have EBITDA move we first our expansion. can from X next our the

margins our improvements we pacific the well This driven consecutive on progress is by been and initiatives. of fourth as has in quarter the cost gross environment margin both as made have expansion company significant

to meaningful our the company expect ability improvements improvements and and continue sight strong significant penetration as demand our In we the demand EBIT [indiscernible] adjusted for to opportunity gross for our is in the improves. fiscal margin to our the up these We have will market improvement have year. to of finance line share. challenging expand of environment, margins set long-term story our discipline, current speaks Traeger household growth into our and

Overall, I am range. end quarter pleased to this of plan I'd be high our the on positioned at results with well guidance first our ability execute to year. deliver our

Let me these our key and review strategic pillars now wins growth in areas.

growth Our to drive in penetration the first States. was awareness and United

the the with slower quarter, to While behind of continue our and seasonal create in we highly seasonally our and the first interact was during period terms a quarter with engaged is Traegerhood energy our grill brand community during key brand events. usage,

Bowl, In our content trash offered big take February, focus Epic post for the and we on on can notches. recipes our the and social Super up including game,

another incredible up We to we saw with year user-generated use Super content engagement our Bowl the Super to post. our a to Patrick during Traeger also how had create and teamed of with demonstrate record Dan strong spread. Bowl viewers Show to brand an Overall,

also season on retail. position on and We increase are a saw focused execution into we the in highly day. this the year, at driving drilling solid peak cooks Heading connected

has level and leveraged around and Traeger community as drive awareness conversion. well marketing to as selling Historically, merchandising accelerate efforts

VIP are exclusive events. and to AX and of Traeger program. commitment are that in our retail retail believe highest brand to This continue retail provides execution next partners we Traeger merchandising strategies is coming program the knowledge, were activities. some [indiscernible] the level. educational to will includes training barbecue addition the associates enthusiasts our This turn Captain to and take and into to ready of limited Traeger investments utilize and their Captain training, months, with designed We these [indiscernible]

these moving season. grilling This Evangelos. associates we transforms through digital the into year, Captain peak into program investing Traeger into are Traeger training in-person and It experiences

the a media. on to contest towards along trader post these Traeger XX, be post our on week, submissions social we hoods cooked Day. seventh the with centers and Traegerhood with shares around food with Members of your best these May joined May been best via Day will gathering celebrating to the annual and over to us friends Traeger Next community memories Traeger a submitting giveaways social Traeger day weeks. we'll couple the On their on recording content community in family XX, of and media. our real Traeger sharing their last our have

all of celebration is The the of and user-generated days highest a Traeger our things content year. day

City. and is to this build out of we Innovation committed Turning our innovation. capabilities vision our inspire in R&D as corporate physical for the Salt Lake remain long-term pillar The our In creativity. with innovation in team to R&D headquarters of Traeger, R&D new to well to completed their area. the lab designed first our empowering in a quarter, equip as the forms lab key tools, we neighboring

XXXX. the that long-term driver to will space cooking to named with most a outdoor new X create will was Traeger and be this innovative believe like enhance Also our mention to industry innovation Company's mission this of on our innovation. greatly in companies ability I'd in Fast front, We

are America. a companies SaaS Traeger the in company in through list the innovative anticipated. that the North sixth innovation is of sectors annual In was ranked shaping businesses and fact, list variety highlights most culture in highly

for our disruption, achievement team incredibly innovation to testament this well-deserved to and our is proud I'm This a of long-standing mission. commitment

innovation Baseball. in Our collaboration and official next edition a crafted the League pellets announced for woodpit growth from used process Louisville Slugger's the our wood In is to pillar repurpose the bat iconic quarter, in the manufacturing maple partnership make pellets Traeger we our In Traeger's business hardwood bat from through our with with are Major transform bats Slugger, iconic consumer brand. the enjoyment an March, of business. pellets we limited to Louisville of users. growing the same American introduction limited of and drove the first

featuring Jr. of much, To on time videos Director [indiscernible] King XX social of with drive Marketing, released series Traeger MLB All-Star Ward, Chad Ralph awareness we cooking a

our we launched marketing is improved updated formula sauces our a [indiscernible] new we and our and upgrade. As new in we easier-to-use squeeze branded line With on a call, relaunched our offering. mentioned all and last markets February, highlighting believe campaign across earnings big new bottles,

We have revamped positioned SRP. line our also at more a competitive

of consumer sauces. pleased have We in line have with versus and lift sauces a sell-through reception of previous our been our new seen

be work are later internationally. at have discuss to will retail demo and add brand, this we down partners level Europe, rolled influencers. continue our the specialty U.K., into are brand on and pillar, and Germany focused from our training we EU at recently and momentum we our year. saw leading In associates distributors to our and quarter, In sales inventory sell-through initiative ] [ on grills season. the out the improved to markets where I We in grilling expanding execution retail pleased expect and that balanced peak In gather we Canada, a them sales direct the the summer. third them the going product our fourth going with excess box will big inventory, Next, demand we in meet

brand international believe drive ours execution than ground our to in we U.S., these of awareness states. in lower level remains our will in that conversion Similar the [indiscernible] where markets

DC-driven the recently we the new our with in launched the quarter, am continue also to Canadian from in side, complement see of revenue our particular, partnership is near-term a MEATER's leading its first to distribution MEATER base. industry. with at our pleased growth continues X face I challenges execute market in to the retailers plan Overall, which to On ability given MEATER Canada. Tire, Vorwerk,

gross for in for has our grew growth organization strong focus been and last saw which of months key XX adjusted We EBITDA. area the margins, a

the against are Going highly executing current environment ability to into positioning seasonal the confident success. in long-term remain and period, we hyper-focused on while navigate peak brand our for plan the I our

that, with Dom? to the over Dom. turn And I'll call

Dominic Blosil

everyone. year review outlook Today, and discuss quarter Thanks, our XXXX. fiscal our will first I performance Jeremy. Good afternoon, for

declined Consumables declined million. was revenues initial quarter consumables Grill revenue compared average impacted and year, revenues launches up lower $XX business of both by our Furthermore, in million. in a First quarter food XXXX, pallet Grill basis. $XXX a sales load-in $XX were well lower were the X selling million, comparative we X% on X% pressured of our by Revenue the to as new to first lapping retail of growth quarter driven last last year, of XX% the of as to first business. price. quarter in first selling which

of revenues ] in X% increased sales to World points Gross growth. was revenues down While Rest we $XX first pleased Gross are MEATER. a million Accessories Geographically, $X.XXX, up largely while XX%. of [ up at XXX did margin from MEATER the by quarter basis ] [ second for increased the quarter, shift versus million, in the the pellet $XX first million were to from profit XXXX. increased revenues benefit revenues timing were quarter driven XXXX. of $XX X%, quarter with first quarter profit

pleased with benefited We implemented the the which are as quarter well gross years. costs in from lower initiatives we our last as X first margin-enhancing performance,

basis lower driven driven The efforts points and increase higher FX mills one, which and increase by: XXX margins two, drove impacted XXX gross favorable margins by in pellet four, basis points. drove XX margin; other costs, margin three, stability, of pellet efficiency points; gross items logistics basis positively margin of which margin was favorability; primarily by our to freight basis our worth points at which XXX

marketing [indiscernible] $XX XXXX. million million expenses [indiscernible] in were of first the $XX quarter and Sales

During EBITDA as share to employee quarter higher was million pellet in period Net loss diluted compared expenses, loss partially XXXX. first of first partially $XX the $X.XX $XX comparable higher the per by $X administrative expense of XXXX. quarter period related by of income period. Net the and the net a $XX million $X as expense $X.XX million in diluted quarter $X first or to offset the compared and General nonrecurring was same expenses. for XXXX. increase in Adjusted net were $X.XX income expense quarter, was share in for of to was $X.XX diluted $XX XXXX. the mill loss of to share offset increased compensation loss by the driven in were stock-based assets quarter Adjusted [ deep million as the demand occupancy first disposal expenses creation of ] of expenses to the million quarter $XX higher of The quarter costs XXXX. to of million first million net in compared compared in of employee compared adjusted was same G&A the of million per or a

to the EBITDA of line was $XX in range approximately our of million. guidance with adjusted million quarter high end First $XX

the quarter end resulting XXXX at in million. the debt $XX ] million. the will ended compared first and end perspective, financing $XX quarter At total the was liquidity company first I the total its receivables down at quarter million the compared totaled with of million cash XXXX. Inventory discuss equivalents At of end $XXX net and to quarter, million quarter $XXX of million of the quarter, [ the drawn under liquidity sheet. From Next, cash the $XXX of quarter debt. year. $XX at fiscal at of the the the of first previous million $XXX of the a we had balance agreement, of first end $XXX with end fourth the We the $XX million the of to long-term ended million end of

believe We our sheet appropriately on demand are outlook. our current inventories balance for positioned

Moving fiscal XXXX. to our outlook year for

are of $XXX to adjusted for We EBITDA guidance $XX million and our million million. reiterating $XXX $XX revenues to of million

by Flatrock, revenues. we will of this sunsetting will consumer As our and remains we [indiscernible] to previously lapping will discussed, the demand Furthermore, sell-through future below lower Grill levels. product be grills be for historical Lowy which as Grill be separate launches, ahead year [indiscernible] pressured also pressure expect and we Ironwood

quarter expect on revenues basis. our We a be that year-over-year third [indiscernible] most will

points year basis XXX expansion percent XX%, are outlook basis points. We XXX gross of reiterating [indiscernible] also for represents to our which margin full to

We expect lower our and margin-enhancing our actions mill by including planned freight lower rates continue transportation offset as import particular, partially strategic inbound well will stimulate pellet program, initiatives, to margin demand. from benefit pricing costs as that our to operation direct

margin and we negatively impacted the believe will We year Furthermore, quarter be pressure by expect meaningful ongoing will expect just in deleverage in year quarter first and lower gross plan that lower make we while faced the be given line third visibility and sales, base second forward. improvement revenue grew adjusted first delivered of rate the [indiscernible] sales a we on quarter. margin we into gross that EBITDA, the we have of improvement Overall, our pressure, gross demand with margin our despite results going the expected quarter of will expansion.

Gap] peak operator call current the on focused remain selling we for questions. and as to turn into committed execution the We the over Operator? move are season our navigating highly environment to [Audio

Operator

Instructions] [Operator

Our first Simeon from question BMO. is Siegel with

Simeon Siegel

but -- the what Dom, was was to domestically what the and return units grow the higher-level link sorry, Jeremy, between Grill if have I about missed How revenue see there. versus And when just you new replenishment going on about And question it, in about growth think then price. that, customers? breakdown it if maybe we're happens. kind to of cycles you terms what and of thinking do just any replenishment views in on

Dominic Blosil

Yes.

the in then for and single high the it more somewhat impact of kind moderated was So breakdown, kind there decline. decline. speaking, digits of ASP units, single-digit was the greater a roughly is to And

Jeremy Andrus

hit to the the second happy of question. Simeon, part

time as all, are from unpack sales end about Grill driven the I soft, period of or should about pull-forward remarks, ownership these the financing we We environment pull-forward our of consumers bit by [indiscernible] expensive demand sell transactions the low spend to things math facilitate Consumer that and stock thinking sentiment how general and of and retail. a XXXX. to fair is on all easy demand the down. doing belief of be in sort is Grill my it's through replenishment is from of First is in housing pandemic it very is not [indiscernible], a versus of much mentioned a

category, consumer And and think element step as it. look high-ticket other of only some you back They have at this not then but to I discretionary categories. tend to cyclicality

cycle. we as interest and is believe so of catalyst to down, beginning to consumer And strength we the come rates the the that see a start

the of how this new start in of question investment, a into about doing as should should start they believe more but of -- top an consumer durables certainly to don't meaningfully think we're downside, top we of absent the versus out some -- we year, normalize, wait lean fairly back cycle. replacement, it's we in on get And to a what normalized do funnel. macro the we back year funnel be And is X in to choosing to and replacement where as terms testing be replenishment impact consumer investing that is should 'XX, then should of certainly believe environment in

Traeger and we and consumers innovation in penetration always is see engagement towards bot products. a X, an X existing [indiscernible] as that will likely We as consumer from new to about we'll owned start can new We new pipeline I low. at and to our earners ensure our drive X, to where that our is years first think we the the ago. mix NPS customers think But increase look low is buy upgrade invest believe we markets

Simeon Siegel

Are think on gross us. pointed Right. That's supply you -- QX, -- then out recognizing great. you that that behind feels And the mean, do and where are you do think at your deleverage as you but highest I that number. you comment look Do longer but we just you the margin. not for for because to the need keep we externalities look any was you encouraging an I look about is guide this this there to mid-XXs? Like term, still low -- back path just towards mind you longer and year, in that term. to

Dominic Blosil

as over, decisions that margin years. fixed when say, an long-term we contracts example the impound working our years, sustainability the what side of that given would was how couple benefit of addressed next in gross pronounced, of is business. on over favor, transportation consistent been gross will calls the assist say to macro that the be during there previous an But the bleed about certain it we pandemic down pressure some important our in that next think in locking a something is made we with dynamics of appropriate macro has it's safe that is that the and in say just to of around Yes. believe couple margin I for from we've sequential will

-- of to. continued Qurate FX component so and that we half and that fact say idiosyncrasies back was particular, transportation of of were year. sort the whereas of benefiting would the some in half on signal, improving think facing there's from less year last I addressed benefit also And from I tailwind it's comp of inbound And remains, rates that then the that opening you've the HX maybe is standpoint given a spoken back sort in the a inbound of the the

really say perspective I starting I'd in assist that term think So in to the drive. And see gross margin of the a think, we're I realm. controllables to long continue is we utilization conjunction in that some that that, different on with

where yet. with think future years. I margin kind of today, take just tailwinds But continued we've be reached in on the are we we some that gross wouldn't view mark to positive we'll in able of that that So out where necessarily say hopefully the driving

Operator

with Baird. next Peter Our question from Benedict is

Peter Benedict

you of at there. Just on made plan, the pricing the end strategic kind Dom,

either that little you referring that Just on in points? us what to around that if at that. you're Just a margin can there. maybe Is you that point is price or portfolio? new bit expand a existing plan Is to curious the innovation -- different more understand help little more bring

Jeremy Andrus

launch that of or -- for good time a year. that. in cycle have to it next been channel One of answer to as prepare as ensure in in lever products some get the new later I'd lean existing Jeremy. products gives we us inventory things. Yes, I the Peter, as to future, is permission think say as we life products into launch this couple promotion market that we is, a to a position new Yes, Happy

very a two, we're selling price one. seeing in notably So those. play and look macro we thoughtful through, what consumer we're at and as is from perspective that's category certainly is of sort Number the trends top what in, that for sensitivity number challenging X we a economy of

environment plan many promotion we plan are we in how months where this we lean so promotions into And a We in feel an is promotions. our , we little but measured will of thoughtful bit more. consumer be and but think of there's where to promotions, do more, trends perhaps in not value the promotion, and any we'll level in the to we opportunity number

the of So this part plan. is

As the inherent is we that think guidance guidance, reaffirm we this about in today.

Peter Benedict

and -- timing be year XXXX, or is planned just macro. in on make to anything sense. to that any based sense you -- No, there that would innovation now like innovation, the that I timing of anything the for any maybe that of back of you of for is makes to could mean have adjust macro that half it bigger of is would of that? for how if kind the sounds I'm innovation might you there right relative terms whether Is Yes. shift the do even trying cause expectations which this the a Jeremy, there maybe the your year, would you what the a

Jeremy Andrus

product think don't We about around macro. launches really

when we objective launch. Our how consistent to we very development pipeline, be our invest is in and

the season. of by seasonality in for a retailer the first is And of time and launch, so the from macro. spring/summer windows. This reset it independent category sell reset by to do that in would tends say I driven And preparation X more our we it's quarter

that we I at more need our will for plan that is we lever -- what we to life at sit use, but would [indiscernible] end inventories certainly promotional we retailers can years new so our products innovation many And [indiscernible] works on -- be launch what plans for promotional out. ensure mean the the best products, to operationally is Peter, plan I It's that to to channel we our of us. before especially and a extent say,

macro And business plan in really to so around hard innovation durables it's cycles. a

Peter Benedict

That sense. think sense. makes that Yes. makes No, no, I

for Just X Dom. maybe more -- for

therefore, you pressure year-over-year on gross clarify expectation, be be sales been quarter to would third about thinking lease, some third expect you the guess, the up the gross year. mentioned it quarter softest just the Do that's quarter in the I or margin margin there. to Just down

Dominic Blosil

what should not gross be or a from guiding anything. We're margin that I specifically say Yes. pronounced. would to standpoint is impact quarters the But

that's will important kind the QX a of other you from in think that, deviation we general our modeling how margin it roll the treat kind to guidance, reaffirming be and and into rate quarters. the to given run an about So you sales. see add so comment deleverage the are just we gross as those of in lower lower sales of off And

Operator

Our is from next Group. Feldman question Joe Telsey Advisory with

Joseph Feldman

you I selling that. When clearly, I consumers purchases you But -- have grows? but about making still. seen are wanted Are when spending better know their are the they any curious be you more, change may in a few quality they because grills it for always subtle, up. to quite opting follow are behavior?

Dominic Blosil

a we having shift offer. in definitely we of points where to shift change seen increasing the price have we $X,XXX see volumes pronounced would sub that a now tended say, in dynamic to of kind those entry most there's to that No, kind $X,XXX from behavior I been, above that

simply that about that promotion, brand think how that we margin we So considered remain by to terms more a just we to in competitive aggressively I the that around competitive, that first made to price within flexibility that trend that as not outside into margins, we straying just we've think making have of those the changes we're we aren't promotion and the strategically sensitive, These guardrails. guardrails we're right? necessarily a lean were is within a definitely in in So reinforced are price ensure systemic we're thinking of urine and Jeremy an defined are without always environment where seeing that's about strategic earlier we how on gross want to we be promo ensure about consumers right? lever think more point

categories which and to think these we in an certainly volumes ticket the that Traeger see in benefit. kind as where is pressure where we I of to on really is about that follow capture to well specific you think, trends, relation big of specific But broader as to, to want kind effort as

I that to this a line. day, moment that across think and end we play we willing that aggressively in a time, follow quality. trend at we pay is And ensure the believe are want of consumers innovation consumer our and product still for the where shopping. we at But more there's to address the

Joseph Feldman

Got if from China. to just would you you it. you're maybe I'm guys very not, where increase China? said then and happy to again. just people of helpful. recall, I And with can were the curious, if from. another was if still ask curious any administration relation tariffs that -- sourcing. because kind sourcing you're if us in to us And And Trump I potential are That's away remind making you exposure effort further you shift about question to

was about just I that. curious So

Jeremy Andrus

Yes.

cases, thing geographies have to -- we Vietnam in operations are diversify manufacture conversations, taking existing in we we suppliers So are underway outside -- we investigating diversification certainly do contingency be always about do that China believe options. an around additional may think to a environment the to movement cost currently may supply other plan contemplated president outside measured be in China sourcing the to and against of to some sourcing just from leans there the In other active and what of China. actively Trump as stability we're effort we're we the also And sort accelerate active -- But where within new and what chain. a into such value sourcing Asia those are the President very of extent geographies.

mind. So that's what of we top

Operator

Our is next Canaccord. with from question Brian McNamara

Unknown Analyst

keeping category? floor Calnan Brian. they about category increasing for or and on retailers, just space to remain the Madison the committed dedicated is floor to were for space We curious This whether

Jeremy Andrus

year-round really seen space. say where haven't begin we years sets feels barbecue pretty of steady point retailers' is now. seasons. certainly of floor a to view would I we ago to across any saw yes, either on right handful moment, retailers state But shift category Madison, expansion in move also to a it the season There and or in

Operator

question with next Our Alexander Morgan is from Megan Stanley.

Megan Christine Alexander

it back in I down quantify I know sell-in revenue down launch talked being settle about you you relation looked come number? quarter. last like you that to Grills, mid-teens sell-through being what Is to maybe still for through. the were Wanted can just the to the your of lapping that number Grills Jeremy, know there in any the year.

in are from understand units suggest one, Or does the perspective, have kind trying macro, commentary of stabilized like the decline may you declines the you heavily the what thinking your looks a was sell-through just bigger worse? number at around declines point? about And earlier Or that seeing this picture, are stabilized? just get to So that quarter? then

Dominic Blosil

I that. in answer and for Thanks the question. can jump

back of of a then of right? Flatrock, to what new in year, your we're a pronounced the launch which of building on basis. end that think on declines launch components the it's the last XXXX think how there think of said, I a sell-through, Ironwood on first sell are the baseline half look So more I the in but in sell-through, sunsetting seeing reported sort of the for we comping about this in at day, our you idiosyncratic products that and ahead sets product HX in it's exactly year And launch question the forecast it year. to are comparison,

those on would from and say watermark. information seeing sort historically, thinking of planning look around the that's layered from standpoint. think still say we've a I would obviously that, a underpins of our what demand higher sort We sell-through we're standpoint, top general of sell-through -- in excess a of are at pre-pandemic sort our forecast, I comparison those and -- baseline talked holding of So share that I which don't about reported but

And to there's so where that where barometer forward the think 'XX, kind pull the of a seeing. different comp not comp a against very levels, pandemic health of sell-through, been we're a back is how pre-pandemic for against than we through a which about reversion

bleed and augmented through this inventories at of line. sort around end day, came that by just and the cost the had of at picture And pull belief that then pandemic, and continue the the so we to is that's lap distorted of excess our down to that forward that's emerged we top

first year, sort product new then first the second and the in half of the these comparisons of this in against comp then half launch. comp X and product half the sunsetting And around

that's worse I a to seeing. really, think, a position we're say are I getting in wouldn't of a or what things better. that kind tell necessarily So summary you we're of And

consistent it's right think themes the side. just I of around sell-through now, kind

Megan Christine Alexander

perspective. EBITDA you unique Again, then it from margin accretive a That's did what top above some the It of year from you with quantify you Got 'XX, just 'XX I is gross in to in you that? of a XQ just really really an you've XX% maybe second products the whether helpful. way. the products. line to the But it. margin expect a basis? think the impact And any sunsetting contextualize a in sunsetting gross it's understanding I or that what But the said, way dynamics impressive. it's be, asking know have did was the different question margin full and half

Dominic Blosil

Yes.

the additional nice margin expansion in volumes where fact So more period. margin some to more quarter, the old sunsetting one, is we sun not isn't in in of really product, lowest a quarter, which it's that, nice pronounced in driving So function deleverage driving replacing always setting It's new. which QX And adding is around pressure on -- the is the by in saw just gross really with right? our added that turn a pressure your QX QX. two, selling erosion some

standpoint to reaffirming means which expect QX of how gross pronounced do for guide from the that QX, full to most relation in coming from our run margin. gross the to QX -- moderate year, -- from on margin over rate to the that the We pressure some is based a deleverage and is impact in and just on volume on impacts QX that

Operator

further No questions. further at [Operator no have We time. Instructions] questions this

time, may you all your we thank participation, lines. for at So your disconnect and now you this

Traeger (COOK) 8 May 242024 Q1 Earnings call transcript