By Roshan Fernandez

Traeger pulled its guidance and outlined a mitigation plan to counteract rapidly evolving tariffs, including a significant reduction in hiring, supply chain diversification, and fewer purchase orders in the near-term.

"While we have seen healthy consumer demand so far this quarter, the impact of broader macroeconomic pressures on an already fragile consumer makes forecasting this year a challenge," said Jeremy Andrus, chief executive of the grill maker.

The company's cost-reduction strategy includes deferring non-essential spending, a notable reduction in travel and entertainment budgets and a significant slowdown in hiring. It expects to identify further ways to cut costs as the year progresses.

The Salt Lake City-based company said it has also reduced purchase orders for grills given its inventory on-hand and in transit. Traeger said it's working to shift production outside of China and into regions where it anticipates tariffs will be lower, though that meaningful shift will occur in 2026.

Traeger on Thursday reported a first-quarter loss of $778,000, or 1 cent share, compared with a loss of $4.68 million, or 4 cents a share, a year earlier.

Revenue decreased 1.1% to $143.1 million compared to a year earlier, just above analysts' estimates of $140.6 million. Sales of grills increased 12.8% during the quarter.

Excluding one-time items, per-share earnings were 5 cents, just above the 4 cents per share that analysts were expecting, according to FactSet.

Shares fell 0.9% to $1.47 in after hours trading.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

(END) Dow Jones Newswires

May 01, 2025 17:42 ET (21:42 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.