Whirlpool reports 10% revenue drop, slashes forecast amid Iran-driven decline

Whirlpool said Thursday that rising costs and demand softness are combining into what it described as an Iran-war-driven downturn for the appliance industry, with results that include lower revenue and a slump in North American sales. The Benton Harbor, Michigan-based company, which also makes KitchenAid and Maytag appliances, said it is now moving toward additional price increases after previously absorbing costs rather than passing them along to customers.

Summary

The company tied the latest pressure on its business to a broad pullback in big-ticket purchases as consumers weigh replacement costs against household budgets. Whirlpool said the Iran war has contributed to what it called a “recession-level industry decline,” and it linked the shift in part to uncertainty in consumer decision-making.

Whirlpool also said the Supreme Court’s recent decision striking down Trump’s emergency tariffs has affected the appliance market. The company said rivals are seeking refunds to reduce the impact of those tariffs, and that refund process has disrupted pricing across the industry.

In its update, Whirlpool reported that revenue fell nearly 10% in its most recent quarter and that sales of major appliances in North America dropped 7%. It said its performance was impacted after it absorbed higher costs earlier in the year, and it pointed to a first-quarter loss of $82 million that reversed last year’s gains.

The company said it had already announced a 10% price hike in April, and that it plans to raise prices by an additional 4% in July. Whirlpool described the upcoming changes as a response to “multiyear inflationary cost pressures,” and it said the pricing steps reflect that the earlier cost absorption could not continue.

During a conference call, CEO Marc Bitzer said Whirlpool’s North American sales slide has a precedent. He said the level of industry decline is “similar to what we have observed during the global financial crisis and even higher than during other recessionary periods.”

Whirlpool estimated in an earnings presentation that the tariff impact on competitors was about 10% to 15%, while the impact on its own business was around 5%. The company said its forecasts and results are also shaped by a consumer environment in which many shoppers are holding back on major appliance purchases.

Mark Stevenson, managing director and product designer at Stove Shield, said in a statement that people are looking at the price of replacing appliances and deciding it is not something they want to deal with right now. He added that shoppers are instead asking “how to avoid the damage in the first place.”

Alongside its earnings report, Whirlpool said it is slashing 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 said it is suspending its dividend as it works to reduce debt this year, and its shares fell more than 12% Thursday.