We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WHR Q3 Earnings Miss on Weak Demand and Cost Inflation
Read MoreHide Full Article
Key Takeaways
WHR reported an loss of 21 cents per share in the third quarter as sales fell 8.8% to $3.68 billion.
WHR's ongoing EBIT margin fell to 2.6% from 4.5%, pressured by inflation, tariffs and weak demand.
WHR expects a 2026 loss of $1.30 per share, and lowered its year-end net debt target to below $4.5 billion.
Whirlpool Corporation (WHR - Free Report) posted third-quarter fiscal 2026 results, with both the top and bottom lines missing the Zacks Consensus Estimate. Sales and earnings declined year over year.
The company reported an ongoing loss of 21 cents per share for the third quarter of 2026 compared with ongoing earnings of $2.09 per share a year earlier, missing the Zacks Consensus Estimate of 50 cents per share. Weak North American appliance demand and higher costs weighed on results despite progress in pricing and structural cost reductions.
Net sales fell 8.8% year over year to $3,677 million. Organic net sales declined 5.4% to $3,643 million, while the North American appliance industry contracted 3.3% during the quarter. The company reported a GAAP loss of $3.80 per share against earnings of $1.29 a year ago.
Whirlpool Corporation Price, Consensus and EPS Surprise
Gross profit declined 20.4% year over year to $473 million from $594 million. Gross margin narrowed to 12.9% from 14.7%, reflecting continued pressure on profitability. Selling, general and administrative expenses increased 5.7% to $428 million from $405 million.
Ongoing earnings before interest and taxes (EBIT) fell 46.1% to $97 million from $180 million. The ongoing EBIT margin contracted to 2.6% from 4.5% a year earlier, although it improved 80 basis points sequentially. Pricing and cost reductions supported sequential margin improvement, partly offset by higher raw-material, tariff, fuel and logistics costs. GAAP net loss available to common shareholders totaled $249 million compared with earnings of $73 million.
Whirlpool's North American Sales Decline
Net sales in MDA North America fell 8.3% year over year to $2,495 million from $2,722 million, missing the Zacks Consensus Estimate of $2,657 million. Excluding currency fluctuations, sales decreased 8.2%, reflecting soft industry demand. Segment EBIT declined 44.7% to $74 million from $134 million. The metric missed the Zacks Consensus Estimate of $ 108 million.
The segment EBIT margin contracted 200 basis points to 3%. However, it increased 30 basis points sequentially as pricing actions and new product launches helped counter inflationary pressures. Whirlpool announced a 7% price increase effective in the fourth quarter, supported by product innovation.
WHR's Latin American Business Faces Mix Pressure
Major domestic appliances in Latin America recorded net sales of $858 million, up 6.9% year over year from $802 million. The metric beat the Zacks Consensus Estimate of $809 million. Excluding currency effects, sales advanced 2.5% on higher volumes, partly offset by unfavorable price/mix effects.
Segment EBIT dropped 61.3% to $18 million from $45 million, missing the Zacks Consensus Estimate of $23 million. The EBIT margin narrowed 360 basis points to 2%, reflecting unfavorable sales mix following Grupo Casas Bahia's bankruptcy reorganization. Whirlpool also announced price increases of up to 10% across Latin America.
Whirlpool's Small Appliances Business Shows Resilience
Small domestic appliances' global net sales slipped 0.7% year over year to $286 million from $288 million, missing the Zacks Consensus Estimate of $322 million. Excluding currency fluctuations, sales declined 0.9%, while strong consumer sell-out and changes in order timing affected the quarter's sales pattern.
Segment EBIT rose 11.7% to $53 million from $47 million, in line with the Zacks Consensus Estimate. The EBIT margin expanded 210 basis points to 18.6%. Product innovation and direct-to-consumer sales supported market-share gains and the segment's profitability. U.S. orders in October were approximately 40% higher year over year, supported by strong consumer sell-out and the shift of some orders from the third quarter into the fourth.
WHR's Cash Flow and Debt Position
Whirlpool ended September with cash and cash equivalents of $1,103 million, up from $669 million at the end of 2025. Long-term debt stood at $6,838 million, while total stockholders' equity reached $3,715 million. The company continues to prioritize balance-sheet strength and working-capital management.
For the first nine months of 2026, operating cash outflow was $826 million, up from $669 million a year earlier. Free cash flow was negative $1,081 million versus negative $907 million, while capital expenditures totaled $255 million compared with $239 million in the year-ago period. Whirlpool also cited the Grupo Casas Bahia bankruptcy reorganization as a factor weighing on cash flow.
Whirlpool Updates Its 2026 Earnings Outlook
Whirlpool now expects 2026 net sales of about $14.5 billion, down roughly 1.5% from the comparable 2025 like-for-like sales base of $14.7 billion. It projects an ongoing EBIT margin of 2-2.2% and an ongoing loss of $1.30 per share. The updated GAAP outlook calls for a loss of approximately $4.95 per share.
Management forecasts operating cash inflow of approximately $700 million and free cash flow of about $300 million. It expects a GAAP tax rate near 8% and an adjusted tax rate of approximately 25%. The company improved its year-end net debt outlook to below $4.5 billion from its previous expectation of below $5 billion. Whirlpool expects its manufacturing and logistics optimization initiatives to deliver more substantial benefits in 2027.
This Zacks Rank #5 (Strong Sell) company’s shares have plunged 29.7% over the past three months compared with the industry’s 17.1% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 14% and 175%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
The Crocs, Inc. (CROX - Free Report) designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and kids. At present, CROX carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for CROX’s current fiscal-year sales and earnings implies growth of 1.7% and 11.7%, respectively, from the year-ago figures. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.
G-III Apparel Group, Ltd. (GIII - Free Report) designs, sources, and markets women's and men's apparel in the United States and internationally. GIII currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for GIII’s current financial-year sales and earnings is expected to decline 8.4% and 13.8%, respectively, from the corresponding year-ago reported figures. GIII delivered a trailing four-quarter negative earnings surprise of 1.4%, on average.
View the Zacks #1 Rank List
Image: Bigstock
WHR Q3 Earnings Miss on Weak Demand and Cost Inflation
Key Takeaways
Whirlpool Corporation (WHR - Free Report) posted third-quarter fiscal 2026 results, with both the top and bottom lines missing the Zacks Consensus Estimate. Sales and earnings declined year over year.
The company reported an ongoing loss of 21 cents per share for the third quarter of 2026 compared with ongoing earnings of $2.09 per share a year earlier, missing the Zacks Consensus Estimate of 50 cents per share. Weak North American appliance demand and higher costs weighed on results despite progress in pricing and structural cost reductions.
Net sales fell 8.8% year over year to $3,677 million. Organic net sales declined 5.4% to $3,643 million, while the North American appliance industry contracted 3.3% during the quarter. The company reported a GAAP loss of $3.80 per share against earnings of $1.29 a year ago.
Whirlpool Corporation Price, Consensus and EPS Surprise
Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote
WHR's Margins Remain Under Pressure
Gross profit declined 20.4% year over year to $473 million from $594 million. Gross margin narrowed to 12.9% from 14.7%, reflecting continued pressure on profitability. Selling, general and administrative expenses increased 5.7% to $428 million from $405 million.
Ongoing earnings before interest and taxes (EBIT) fell 46.1% to $97 million from $180 million. The ongoing EBIT margin contracted to 2.6% from 4.5% a year earlier, although it improved 80 basis points sequentially. Pricing and cost reductions supported sequential margin improvement, partly offset by higher raw-material, tariff, fuel and logistics costs. GAAP net loss available to common shareholders totaled $249 million compared with earnings of $73 million.
Whirlpool's North American Sales Decline
Net sales in MDA North America fell 8.3% year over year to $2,495 million from $2,722 million, missing the Zacks Consensus Estimate of $2,657 million. Excluding currency fluctuations, sales decreased 8.2%, reflecting soft industry demand. Segment EBIT declined 44.7% to $74 million from $134 million. The metric missed the Zacks Consensus Estimate of $ 108 million.
The segment EBIT margin contracted 200 basis points to 3%. However, it increased 30 basis points sequentially as pricing actions and new product launches helped counter inflationary pressures. Whirlpool announced a 7% price increase effective in the fourth quarter, supported by product innovation.
WHR's Latin American Business Faces Mix Pressure
Major domestic appliances in Latin America recorded net sales of $858 million, up 6.9% year over year from $802 million. The metric beat the Zacks Consensus Estimate of $809 million. Excluding currency effects, sales advanced 2.5% on higher volumes, partly offset by unfavorable price/mix effects.
Segment EBIT dropped 61.3% to $18 million from $45 million, missing the Zacks Consensus Estimate of $23 million. The EBIT margin narrowed 360 basis points to 2%, reflecting unfavorable sales mix following Grupo Casas Bahia's bankruptcy reorganization. Whirlpool also announced price increases of up to 10% across Latin America.
Whirlpool's Small Appliances Business Shows Resilience
Small domestic appliances' global net sales slipped 0.7% year over year to $286 million from $288 million, missing the Zacks Consensus Estimate of $322 million. Excluding currency fluctuations, sales declined 0.9%, while strong consumer sell-out and changes in order timing affected the quarter's sales pattern.
Segment EBIT rose 11.7% to $53 million from $47 million, in line with the Zacks Consensus Estimate. The EBIT margin expanded 210 basis points to 18.6%. Product innovation and direct-to-consumer sales supported market-share gains and the segment's profitability. U.S. orders in October were approximately 40% higher year over year, supported by strong consumer sell-out and the shift of some orders from the third quarter into the fourth.
WHR's Cash Flow and Debt Position
Whirlpool ended September with cash and cash equivalents of $1,103 million, up from $669 million at the end of 2025. Long-term debt stood at $6,838 million, while total stockholders' equity reached $3,715 million. The company continues to prioritize balance-sheet strength and working-capital management.
For the first nine months of 2026, operating cash outflow was $826 million, up from $669 million a year earlier. Free cash flow was negative $1,081 million versus negative $907 million, while capital expenditures totaled $255 million compared with $239 million in the year-ago period. Whirlpool also cited the Grupo Casas Bahia bankruptcy reorganization as a factor weighing on cash flow.
Whirlpool Updates Its 2026 Earnings Outlook
Whirlpool now expects 2026 net sales of about $14.5 billion, down roughly 1.5% from the comparable 2025 like-for-like sales base of $14.7 billion. It projects an ongoing EBIT margin of 2-2.2% and an ongoing loss of $1.30 per share. The updated GAAP outlook calls for a loss of approximately $4.95 per share.
Management forecasts operating cash inflow of approximately $700 million and free cash flow of about $300 million. It expects a GAAP tax rate near 8% and an adjusted tax rate of approximately 25%. The company improved its year-end net debt outlook to below $4.5 billion from its previous expectation of below $5 billion. Whirlpool expects its manufacturing and logistics optimization initiatives to deliver more substantial benefits in 2027.
This Zacks Rank #5 (Strong Sell) company’s shares have plunged 29.7% over the past three months compared with the industry’s 17.1% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 14% and 175%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
The Crocs, Inc. (CROX - Free Report) designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and kids. At present, CROX carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for CROX’s current fiscal-year sales and earnings implies growth of 1.7% and 11.7%, respectively, from the year-ago figures. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.
G-III Apparel Group, Ltd. (GIII - Free Report) designs, sources, and markets women's and men's apparel in the United States and internationally. GIII currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for GIII’s current financial-year sales and earnings is expected to decline 8.4% and 13.8%, respectively, from the corresponding year-ago reported figures. GIII delivered a trailing four-quarter negative earnings surprise of 1.4%, on average.