[ad_1]
The mood surrounding the U.S. housing market remains unfavorable, and probably won’t get any better until later this year.
Consumer electronics giant Whirlpool (WHR) just released some guidance ahead of a sell-off to investors on the New York Stock Exchange today, which says a lot about the continued pressure in the market. .
Despite a big innovation push this year, especially an aggressive push into new small appliances like the automatic KitchenAid espresso maker, the company led sales in North America to flat year over year.
The company doesn’t see any real improvement in sales until 2026, with compound annual sales growth in North America, its largest market, of 2% to 3%, outlined.
Learn more about this guide with Whirlpool Chairman and CEO Marc Bitzer in a chat on Yahoo Finance Live today at 3pm ET.
The positive here is that the industry’s notorious cost-cutting companies believe they can expand profit margins this year, next year, and into 2026 by cutting significant costs.
Keep in mind that this back-end-focused outlook for Whirlpool comes in the wake of this week’s lackluster new home sales report.
The bottom line is that for housing derivatives stocks like Whirlpool and Home Depot (HD) to rise again, the Fed will need new signals about when it will cut rates. Expectations for interest rate cuts this year have been sharply dented by stronger-than-expected inflation and mixed comments from the Fed.
That being said, I am a purchaser of a new KitchenAid automatic espresso maker. A great tool that delivers caffeine in a super efficient way!
[ad_2]
Source link
