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Sluggish bike-related demand leads to Thule sales decline

Published July 19, 2023

STOCKHOLM (BRAIN) — Thule Group's second-quarter net sales decreased 8.6% year-over-year with the company seeing a sales decline in bike-related products in its Americas region. Net sales for the quarter ending in June were SEK 3,029 million ($296 million) compared with SEK 3,314 million at the same time last year. After exchange rate fluctuations, sales were down 15.1%.

During the quarter, sales in its Region Americas dropped 18% year-on-year after currency adjustment.

"Just as with Europe, we experienced a cautious retail chain in terms of other sports and outdoor products in the major markets of the U.S. and Canada," said CEO and President Magnus Welander. "However, we noted a continued positive trend in the smaller Latin America markets in the quarter."

Year-over-year net income was down 14%, from SEK 539 million to SEK 626 million. Earnings per share was SEK 5.14, compared with SEK 5.99 at the same time last year.

"Sales at the start of the quarter were weak," Welander said. "The main reason being, as with the previous three quarters, lower sales of bike-related products to our retailers who continued to lower their inventory levels. This can be compared with the year-earlier period when the same retailers were in the middle of an aggressive phase of inventory build up."

Welander noted phasing out some older low-margin packs, bags, and luggage had a negative effect on the American region's quarter. Going forward, the primary focus will be on duffel bags, luggage, and backpacks, he said.

Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quotes are at

Topics associated with this article: Earnings/Financial Reports

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