Whirlpool, which produces about 80% of its major appliances at American factories, appeared well-positioned to benefit from President Donald Trump's emphasis on domestic manufacturing. However, the company reported a nearly 10% decline in revenue for its most recent quarter, with sales of major appliances in North America dropping 7%.
Industry Decline and Price Hikes
The maker of KitchenAid and Maytag products attributed the slump to what it described as a “recession-level industry decline” linked to the Iran war, which has shaken consumer confidence. In response, Whirlpool announced a 10% price increase in April—its largest in a decade—and a separate 4% hike set for July to address “multiyear inflationary cost pressures.”
The company had previously absorbed higher costs rather than passing them on to customers, but a first-quarter loss of $82 million, reversing last year's gains, forced a change in strategy. CEO Marc Bitzer noted that the North American sales decline mirrors patterns seen during the global financial crisis and surpasses other recessionary periods.
Tariff Impact and Consumer Behavior
Whirlpool's performance has also been affected by the Supreme Court's decision to strike down Trump's emergency tariffs. Rival appliance makers are seeking refunds to mitigate tariff impacts, further disrupting industry pricing. According to Whirlpool's earnings presentation, the tariff impact on competitors was estimated at 10% to 15%, compared to around 5% for Whirlpool.
With consumers already concerned about high grocery and gas prices, many are postponing big-ticket purchases like major appliances. “People are looking at the price of replacing appliances and realizing it’s not something they want to deal with right now,” said Mark Stevenson, managing director at Stove Shield. “Instead, they’re asking how to avoid the damage in the first place.”
Financial Outlook and Stock Performance
Whirlpool slashed its full-year earnings forecast to a range of $3 to $3.50 per share, down from a prior outlook of $6 per share. The company also suspended its dividend as it seeks to reduce debt this year. Shares fell more than 12% on Thursday following the announcement.
