Traeger, Inc. (NYSE:COOK) Q3 2023 Earnings Call Transcript

Jeremy Andrus: Yes. I mean, hard to comment on the broader drilling industry. We have some visibility into inventory levels, but we’re very familiar with our inventory levels. I think we probably — we probably got in front of this sooner than our competition. It benefits no one for channel-level inventories to be high. And so we were strategic in terms of how we fulfilled how we drove promotions. And I guess I can just speak for Traeger and say that we’re very pleased with our channel level inventories. They felt they felt really good for quarter replenishment has been as we would expect, retailer sells a unit replenishes a unit. But I would also just note that from a balance sheet perspective, the notable decline in channel level inventories down more than one-third since the beginning of the year. And we feel like we’re in a good steady state relative to where we are seasonally.

Brian McNamara: Great. And then secondly, on the macro front, can you talk about what you’re seeing in terms of elasticity and price points? I believe when the destocking trend started, you mentioned pressure in the sub-$1,000 price point. Is that still the case? Or has that moved materially up market?

Dom Blosil: I think we’ve certainly offset some of that with the pricing we took back to really a normal pricing strategy pre pandemic and the corresponding uplift in volumes has validated that. That said — or maybe that’s providing some offset to the macro and/or pressures on consumer with respect to high ticket items we definitely think we’re still feeling some of that. But at the end of the day, I think it’s more pressure broadly on comps year-over-year and just kind of demand trends and less so around our price points, right? So again, we’re comfortable with how we’ve set our pricing strategy across the portfolio. We’ve seen a corresponding uplift in volumes, especially sub a $1,000 and right now, it’s more isolated to what we’re seeing in macro more than it is how we think about pricing internally.

Brian McNamara: Great. Thanks for the call, guys. Appreciate it. Best of luck.

Dom Blosil: Thanks, Brian.

Operator: Those were all the questions we have. So this concludes today’s call. Thank you for your participation, and you may now disconnect your lines.