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Extreme Heat and Smoke Belongs in a Grill, Not Outside – Business Impact

Earnings season in the outdoor cooking industry is upon us for fiscal Q2. With how terrible last grilling season went, companies were hoping for a more normal season this year. Other than when opening the smoker lid though, we’re not holding our breath.

Record Setting Heat

Last year, we heard on earnings calls that the high temperatures outside suppressed grill demand. The reason being that consumers didn’t want to be outside grilling in the hot weather.

If that was the case last year, this year says “hold my beer”. Much of the nation (and internationally) has been gripped by record breaking heat over the past couple months. NOAA has predicted that the heat will continue through July as well, or most of the grilling season.

That’s likely keeping people indoors and away from the grill aisles. It doesn’t just impact grill sales, as outdoor cooking companies has been seeing some success in consumables, which would also be impacted.

Keep in mind there were late snowfalls out west that delayed outdoor buying to start the season. We may hear more about weather impacting selling for Q2 too.

Wildfire Smoke

As if the temperatures outside weren’t bad enough, much of the northern states were plagued by thick smoke from Canadian forest fires through much of June. The smoke made the air quality so bad that people were advised to stay inside.

Like the heat, that’s not good for the outdoor cooking industry. Consumers staying inside means they aren’t buying grills, accessories, and consumables. The wildfire smoke is projected to continue through the summer.

Suppressed Earnings

Even ignoring the macroeconomic environment, the smoke and heat is enough to turn earnings south. Starting this week, we’ll get to see if outdoor cooking companies are able to overcome the headwinds.

Below is the key earnings schedule for what’s been announced.

Manufacturers

  • Vista Outdoor – 7/27/23 with a call at 9:00am EST
  • Traeger – 8/2/23 with a call at 4:30pm EST
  • Solo Brands – 8/3/23 with a call at 8:30am EST

Retailers

  • The Home Depot – 8/15/23 with a call at 9:00am EST
  • Lowe’s – 8/22/23 with a call at 9:00am EST
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