Whirlpool has issued a stark warning about a "recession-level" slump in the appliance industry, driven by the ongoing war in Iran and a recent Supreme Court ruling on tariffs. The company, which owns brands like KitchenAid and Maytag, reported a nearly 10% drop in quarterly revenue as North American major appliance sales fell over 7%.
Consumer Confidence Collapse
The appliance giant said that the Iran war led to a "recession-level industry decline" in the United States, with consumer confidence plummeting in late February and March. Americans are delaying big-ticket purchases, opting to repair rather than replace 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.
Price Hikes and Earnings Forecast
To address "multiyear inflationary cost pressures," Whirlpool implemented a 10% price hike in April—its largest in a decade—and plans an additional 4% increase in July. The company posted a first-quarter loss of $82 million, reversing last year's gains. CEO Marc Bitzer noted that the decline is comparable to the global financial crisis. Whirlpool slashed its full-year earnings forecast to $3–$3.50 per share, down from a prior outlook of $6, and suspended its dividend to reduce debt.
Impact of Tariff Ruling
The Supreme Court's decision to strike down Trump-era emergency tariffs has disrupted pricing. Whirlpool estimated that competitors faced a 10%–15% tariff impact, while its own was around 5%. Shares tumbled more than 12% following the announcement.
