KitchenAid parent company Whirlpool’s weak 2025 outlook shows people still are not buying
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The 2025 expectations show that Whirlpool’s efforts to raise prices and lower costs are not yet paying off.
PHOTO: AFP
CHICAGO – Whirlpool Corp on Jan 29 reported quarterly sales and adjusted earnings that fell below estimates, and gave a downbeat 2025 outlook, indicating that Americans are continuing to shy away from big-ticket purchases such as refrigerators.
In its most recent quarter, lower sales in North America hurt the company’s sales.
The company expects net sales for the year of around US$15.8 billion (S$21.33 billion), below analyst estimates of US$16.2 billion, and adjusted earnings of around US$10 per share, short of estimates of US$11.59 per share.
The 2025 expectations show that Whirlpool’s efforts to raise prices and lower costs are not yet paying off. The maker of Maytag refrigerators and dishwashers delivered about US$300 million in cost savings in 2024, in part by lowering manufacturing and payroll expenses. In 2025, the company said it expects to save about US$200 million in costs.
Whirlpool also recorded an impairment charge of US$381 million for its Maytag brand in the fourth quarter, saying on Jan 29 that the trademark’s carrying value exceeded its fair value.
Whirlpool is struggling to increase sales in its home market of North America as high interest rates have been deterring potential home buyers across the US.
The maker of the Amana and KitchenAid brands has said cash-strapped shoppers are trading down to less-expensive options, further pressuring revenue.
Whirlpool, based in Benton Harbor, Michigan, is looking to its small appliance division to help boost its business with items like a grain cooker and hand-held blenders. In the quarter, sales for this segment rose from the year prior, but trailed expectations.
While some consumer-goods makers, such as Procter & Gamble Co, have reported that shoppers are willing to spend for essential items like toilet paper and shampoo, bigger ticket purchases have been more subdued lately.
Signet Jewellers earlier in January said it expects a fourth-quarter sales drop of as much as 2.5 per cent, and Remy Cointreau gave an outlook that shows US consumers pulling back on expensive spirits. BLOOMBERG
