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Traeger Reports Q4 2024: Revenue Growth and Margin Expansion

Traeger experiences a solid finish in Q4 2024, with a revenue growth of 3% led by strong grill sales. The company also reports improved gross margins, indicating efficient cost management despite macroeconomic challenges.

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AI Rating:   7
Financial Highlights
Traeger reported a 3% revenue growth in Q4 2024, with grill revenues increasing by 30% compared to the prior year. This was particularly buoyed by a successful holiday promotional period. The company's gross margin improved by 410 basis points year over year, reaching 40.9%. These indicators of profitability reflect effective cost management and a favorable product mix.

The adjusted EBITDA for Q4 was $18 million, a 41% increase compared to Q4 2023. This demonstrates strong operational performance, exceeding initial expectations.

Growth in Key Areas
The grill business showed resilience, driven by innovative promotional strategies and a positive consumer response to new product launches. The Woodridge series of grills contributed significantly to revenue in the quarter, reflecting consumer demand at various price points. Furthermore, there was a 25% growth in the consumables segment, indicating strong replenishment and new distribution channels.

Market Strategy
Traeger continues to face challenges with its accessories segment, particularly with MEATER's underperformance, affecting overall accessory revenues, which declined by 24%. However, the company is implementing strategic initiatives to enhance MEATER's market position. Traeger's overall success hinges on its ability to effectively execute its promotional strategies and expand its market presence.

Outlook and 2025 Guidance
For 2025, Traeger projects revenues between $595 million to $615 million, reflecting a range of down 2% to up 2% compared to 2024. The guidance indicates cautious optimism, acknowledging potential impacts from tariffs on goods sourced from China and a conservative approach towards the economic environment. Despite expected challenges, Traeger maintains confidence in its growth trajectory and market positioning.
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