Whirlpool’s CEO compared current industry demand decline to the global financial crisis, stating it is similar to 2008 and even higher than other recessionary periods. Whirlpool reported Q1 revenue of $3.27 billion, down 9.6% year over year, and a sharp collapse in North America segment EBIT to $6 million. Management responded with a double-digit price increase, suspended the common dividend, and pursued deleveraging. Despite producing most products in the US and benefiting from lower input costs, consumer demand did not materialize. The company’s stock fell substantially over multiple timeframes. Other consumer-related companies showed mixed signals, with some guidance reductions tied to low sentiment and inflation pressures.
"“this level of industry decline is similar to what we have observed during the global financial crisis and even higher than during other recessionary periods.”"
"“Revenue came in at $3.27 billion, down 9.6% year over year, with the North America segment EBIT collapsing 96% to just $6 million. Management responded with the largest price increase in over a decade, a double-digit hike, and suspended the common dividend to fund deleveraging.”"
"“Whirlpool makes 80% of its products in the US and was supposed to be a Section 232 winner. Lower input costs didn't matter, because consumer demand hasn't materialized. The stock is now down 41% year to date and down 47% over one year.”"
"“Kraft Heinz ( NASDAQ:KHC) CEO Steve Cahillane flagged an environment ‘with increasing inflationary pressures and persistently low consumer sentiment’ and guided organic net sales down 1.5% to 3.5%. Planet Fitness ( NYSE:PLNT) fell 53% year to date after CEO Colleen Keating paused the planned national Black Card price increase and cut same club sales guidance to ~1% from 4%-5%.”"
#appliances #consumer-demand #earnings-and-guidance #macroeconomic-recession-risk #pricing-and-dividends
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