Whirlpool Reports Quarterly Loss, Suspends Dividend Amid ‘Recession-Level’ U.S. Market

Whirlpool reported a first-quarter loss of $82 million, reversing a profit from the same period last year.

Revenue dropped nearly 10% in the quarter, with sales of major appliances in North America declining more than 7%. The company attributed the downturn to a "recession-level industry decline" in the U.S., citing a collapse in consumer confidence during late February and March, driven by the Iran war and broader economic concerns.

Price Increases and Forecast Cuts

In response to what it described as "multiyear inflationary cost pressures," Whirlpool announced a 10% price increase in April and a separate 4% increase planned for July.

The company also lowered its full-year earnings forecast to $3–$3.50 per share, down from a prior outlook of $6 per share, and suspended its dividend to focus on reducing debt.

Following the announcement, shares fell over 12%.

A Shift in Strategy

Whirlpool produces approximately 80% of its major appliances at U.S. factories. The company had previously absorbed higher costs rather than passing them on to consumers, but reversed course after recording the quarterly loss.

CEO Marc Bitzer noted that the North American sales decline was comparable to levels seen during the global financial crisis and exceeded declines in other recessionary periods.

An additional headwind came from the Supreme Court's decision to strike down Trump-era emergency tariffs, which affected pricing across the industry. Whirlpool estimated the tariff impact on its business at 5%, compared to 10–15% for competitors.

Consumer Behavior Shifts

Consumers are delaying big-ticket purchases like major appliances due to high grocery and gas prices.

Instead of buying new products, many households are opting to repair existing items, further depressing demand in the home appliance sector.