How Will Whirlpool's Focus on Cost Control & Innovation Boost Profitability?

Whirlpool Corporation WHR is steering through a challenging business environment shaped by sluggish consumer demand, tariff uncertainty and intense competition from Asian imports. Despite these pressures, the company’s leadership remains confident that its strategic focus on disciplined cost control and robust product innovation will sustain long-term profitability. In the second quarter of 2025, Whirlpool faced headwinds from delayed tariff effects and weak consumer sentiment, yet it continued to strengthen its operational foundation. This dual focus on driving efficiency while investing in innovation positions the company for sustainable performance once macro conditions stabilize.

A key pillar of Whirlpool’s profitability strategy lies in its ongoing cost takeout initiatives. The company has streamlined its operations through organizational simplification, manufacturing efficiencies and supply chain optimization, resulting in year-over-year margin expansion in the second quarter of 2025. These actions reflect a structural, not temporary, improvement in cost competitiveness. Additionally, Whirlpool has strengthened its balance sheet through proactive debt refinancing and disciplined capital allocation, ensuring liquidity and flexibility for future investments. Such financial discipline not only supports near-term stability but also lays the groundwork for long-term value creation.

Alongside cost management, innovation remains a central driver of Whirlpool’s growth strategy. The company is undertaking its largest product refresh in more than a decade, introducing over 100 new products across brands like KitchenAid, Maytag and JennAir. Innovations such as customizable KitchenAid suites and advanced downdraft induction cooktops demonstrate Whirlpool’s commitment to enhancing design, functionality and consumer appeal. These product launches are expected to capture consumer interest, gain new retail placements and elevate mix quality — critical factors for improving margins as discretionary demand returns.

Ultimately, Whirlpool’s success in achieving long-term profitability will depend on how effectively it balances operational efficiency with innovation-led growth. By controlling what it can — costs, productivity and product excellence — the company is building resilience against short-term market volatility. As tariffs take full effect and the U.S. housing market gradually recovers, the company’s strong domestic manufacturing base and revitalized product portfolio should drive meaningful margin expansion. The combination of disciplined cost management and bold innovation ensures that Whirlpool is not just reacting to the present environment but strategically positioning itself for sustainable, long-term profitability.

WHR’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 31.4% in the past three months compared with the industry and the broader Consumer Discretionary sector’s fall of 28.8% and 1.2%, respectively. The stock also underperformed the S&P 500, which gained 9.3% in the same period.

WHR Stock's Past Three-Month Performance

Is WHR a Value Play Stock?

WHR currently trades at a forward 12-month P/E ratio of 10.39X, which is higher than the industry average of 9.06X and notably below the sector average of 19.35X.

WHR P/E Ratio (Forward 12 Months)

Stocks to Consider

We have highlighted three better-ranked stocks, namely, Ralph Lauren Corporation RL, Guess?, Inc. GES and Boyd Gaming Corporation BYD.

Ralph Lauren, a designer and distributor of premium lifestyle products, including apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ralph Lauren has a trailing four-quarter earnings surprise of 8.5%, on average. The Zacks Consensus Estimate for RL’s current sales and earnings indicates growth of 6% and 20.03%, respectively, from the year-ago period’s reported figures.

Guess?, Inc. is a designer and marketer of casual apparel and accessories. It currently carries a Zacks Rank #2.

GES delivered a trailing four-quarter earnings surprise of 26.7%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 7% from the year-ago number.

Boyd Gaming has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 9%, on average.

The Zacks Consensus Estimate for Boyd Gaming’s 2025 sales indicates a decline of 4%, while the same for EPS indicates growth of 6.11% from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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