Traeger withdraws guidance for FY25, implements cost savings initiatives

Due to macroeconomic uncertainty related to rapidly evolving trade policy and consumer sentiment, the Company is withdrawing its prior guidance for Fiscal 2025. In an effort to offset the direct impact of tariffs as well as to promote balance sheet health and to maximize cash flow, the Company is implementing a number of mitigation strategies. These efforts include: The Company has identified savings and efficiencies across its supply chain, including cost negotiations with its contract manufacturers. Moreover, the Company is working to diversify production further outside of China into regions where it expects tariffs and costs to be lower and expects a meaningful reduction in the portion its production occurring in China in 2026. In collaboration with its retail partners, the Company has implemented strategic pricing increases across its product portfolio. The Company has implemented a cost savings initiative to drive efficiencies in its cost structure. Near-term, this includes the deferral of certain non-essential expenditures and projects, a material reduction in travel and entertainment spending, as well as a significant reduction in hiring. The Company expects to identify further cost savings opportunities during Fiscal 2025. In light of the uncertain demand environment and to promote balance sheet health, the Company has significantly reduced purchase orders on grills and will reassess purchase plans with further sell-through data in the coming months. The Company expects that inventory on hand and in transit is sufficient to appropriately service near-term demand.