Whirlpool shares fell more than 12% in morning trading following a warning that appliance demand reached levels not seen since the 2008 financial crisis. The appliance industry experienced a 7.4% decline in demand during the first quarter. CEO Marc Bitzer reported a dramatic pullback in discretionary purchases by consumers.
While essential appliance replacements remained stable, the overall decline indicates a significant cutback in non-essential home goods spending. Bitzer noted the industry decline was steeper than during several past recessionary periods. This trend suggests consumers are postponing big-ticket purchases.
The data serves as a key indicator for the XLY sector, which includes homebuilders, retailers, and auto manufacturers. Whirlpool (WHR) reported a surprise adjusted loss per share for the first quarter, missing analyst expectations. The company's performance raises concerns regarding the resilience of future consumer spending.