Whirlpool looking to small appliances for business boost

Whirlpool Corp., the maker of KitchenAid and Maytag, is counting on its small-appliance business to help it turn around sales that have been pressured by a weak U.S. housing market.

The company is planning to introduce new fully automatic espresso makers this year as inflation-weary shoppers pull back from larger appliance upgrades. Whirlpool is also planning to fuel growth with stand-mixer attachments and other countertop fixtures, such as blenders and food processors, it said in an investor presentation last week. Whirlpool’s small appliances generate higher margins than the rest of its business.

“People spend a lot more time at home,” Ludovic Beaufils, executive vice president of KitchenAid small appliances, said during an investor presentation. “The convenience of being able to make your favorite espresso or coffee drink at home is what we’re pursuing.”

The company can also grow by selling more cordless mixers, grinders and handheld blenders, which were introduced in the fall of 2023 and run with battery power, Beaufils said.

The Benton Harbor, Mich.based manufacturer, which gets more than half of its revenue from North America, has been trying to lower costs by reducing the number of components in products, simplifying its factories and trimming corporate headcount. Whirlpool is also divesting its major-appliances line in Europe as it focuses on businesses with higher growth and margins.

Meanwhile, Whirlpool said it expects net sales of $17.2 billion in 2026, compared with the average analyst estimate of $17.9 billion, according to data compiled by Bloomberg. The company reaffirmed its revenue forecast for the current year. It’s also targeting as much as $400 million in additional cost reductions in 2025 and 2026 combined, compared with as much as $400 million in the current year.

Americans have been skipping purchases of new appliances with existing home sales at the lowest levels in more than 25 years. Whirlpool’s discretionary business, which is closely tied to home sales, has been weak, especially in North America.

But it’s hoping to lure consumers with new, less-expensive options to support home cooking, which has undergone a renaissance after covid-19 restrictions. The company is targeting more than 100 new product introductions this year, higher than last year.

This year, Whirlpool is focused on reducing its debt and dividend payments. Acquisitions aren’t a priority for the company in 2024, Chief Financial Officer Jim Peters said.