The following is a summary of the Traeger, Inc. (COOK) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Traeger's Q3 revenue grew by 4%, driven by strong grill sales which surged 32% compared to the previous year.

• Gross margin expanded significantly by 440 basis points due to external factors and internal margin enhancement initiatives.

• Adjusted EBITDA was $12 million, significantly improved from the previous year's $5 million, with a 610 basis point expansion in adjusted EBITDA margin.

• The company raised fiscal 2024 guidance, now expecting sales between $595 million and $605 million, and adjusted EBITDA between $78 million and $81 million.

Business Progress:

• Traeger's strategic promotional activities, including a successful Labor Day promotion, contributed to a strong sell-through at retail, leading to increased grill revenues and market share gains.

• Ongoing investments in community engagement and brand activation via platforms such as Traeger GameDay and Traeger Kitchen are enhancing brand affinity.

Opportunities:

• The continuous rise in Traeger's unaided brand awareness, which increased by approximately 20% compared to 2022, despite the challenging industry environment and minimal investment in top-funnel marketing, underscores the strength and growth potential of the brand.

• The upcoming introduction of new high-margin grill models from the direct import program, which is expected to contribute positively to gross margins.

Risks:

• Despite positive grill sales, the consumables category saw a decline in revenues due to shifts in revenue pacing despite underlying positive trends, highlighting sensitivity to market conditions and ordering patterns.

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