Treehouse Reports Ugly Q2, Shaking Investor Confidence; Lowering FVE, but Shares Still Cheap

For most of 2021, shares of no-moat Treehouse have been besieged by uncertainty surrounding the competitive positioning of its business (and the private-label category more broadly) against the backdrop of the recent acute inflation. As such, we suspect there was quite a bit of concern heading into its second-quarter earnings, with investors eager to see how the firm’s initiatives across commercial, production, and logistics functions were helping it navigate treacherous terrain.