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Investing.com – Traeger (NYSE:COOK) stock fell 9% Friday as the company reported a net loss in the second quarter after expenses more than doubled.
This was the company’s first earnings announcement after it went public in July.
Sales and marketing expenses soared to $47.3 million compared to $21 million in the second quarter last year. The company attributed this to increase in advertising spend for greater customer awareness and driving demand. It also spent more on acquiring and improving the customer experience.
General and administrative expenses were $24.8 million, compared to $9.3 million last time. This was largely due to an increase of $10.3 million in professional services in connection with the refinancing of the company’s long-term debt, consulting services, and legal expenses, it said.
The jump in expenses overtook the 39% increase in revenue to $213 million.
As a result, the company reported a net loss of $4.9 million compared to a profit of $18.85 million in the second quarter of last year.
Inventory rose as the company targeted higher levels of safety stock to meet expected demand.
The maker of wood pellet grill, an outdoor cooking system, expects yearly revenue to come in at $765 million at midpoint of the range.
