Home appliances manufacturer Whirlpool, whose products are distributed by Harvey Norman owned by Arisit has had another ‘shocking’ year with sales slumping over 18% year on year.
Last year Whirlpool who also own Kitchen Aid, JennAir, and InSinkErator, extended its distribution agreement with Arisit, despite falling sales, with the US appliance Company struggling to overcome annual revenue declines averaging 8.2% over the past two years according to analysts.
Facing a challenging fourth 2024 the company has missed market revenue expectations again, with brands such as Westinghouse stripping share in several markets, along with several Chinese appliance brands.
Last night Whirlpool shares sank after the company reported quarterly sales and adjusted earnings that fell below estimates and gave a downbeat 2025 outlook.
The slump in share value was their biggest intraday decline since October of 2023.
Bloomberg claims that the results indicate that consumers are continuing to shy away from big-ticket purchases such as refrigerators.
Retailers in Australia are reporting that the bulk of the appliance market during the past year has been replacement products.
In its most recent quarter, Whirlpool reported lower sales in several key markets including the USA.
The company expects net sales for the year of around US$15.8 billion, below analyst estimates of $16.2 billion, and adjusted earnings of around $10 per share, short of the $11.59 estimate.
“We expect the global industry to be approximately flat in 2025,” Chief Financial Officer Jim Peters said during a call with analysts last night “In the US we expect to see similar demand trends that we saw throughout 2024.”
The 18.7% year on year fall appears to be part of a broader trend for the company claims market intelligence Company IndexBox.
The company’s GAAP loss per share was recorded at US$7.10, significantly below consensus estimates, as Whirlpool’s operating profit margin fell to negative 3.3%, influenced by a US$381 million goodwill impairment.
According to analysts the business is facing a 4.1% decline in revenue over the next 12 months with the long-term outlook being described as “cautious” with Whirlpool struggling to adjust its large, fixed cost base to meet dwindling demand.
The 11.7% fall in the Company’s stock follows a disappointing fourth-quarter results with the overall sentiment as to the Companies future being described as “reserved” by stakeholders and market analysts.
At this stage there is little prospect of a robust recovery from the home appliance manufacturer claims analysts.
Analysts at Simply Wall Street claim that ‘While the industry has experienced revenue growth lately, Whirlpool’s revenue has gone into reverse gear, which is not great’.
The go to claim that ‘The only time you’d be comfortable seeing a price to sales ratio like Whirlpool’s is when the company’s growth is tracking the industry closely’.
In Whirlpools case it’s not.
Research shows that during the past year the US company delivered a frustrating 3.4% decrease to the company’s top line.
