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Sporting goods bankruptcies challenge Thule growth in North America

Published July 21, 2016

STOCKHOLM (BRAIN) — Thule Group reported sales growth of 8.2 percent in its second quarter, contributing to a 7.2 percent growth for the first half of the year.


The company attributed the growth to successful new product releases, but said the bankruptcies of two major U.S. sporting goods chains, Sports Authority and Sport Chalet, hampered sales in the U.S.

The company’s Americas region recorded growth of only 0.5 percent in the quarter, despite more significant growth in Canada and Latin America.

“(T)he market situation in the U.S. was less stable,” said Thule Group CEO and president Magnus Welander. “The bankruptcies of two major U.S. retail chains in the sports and outdoor market during the spring has impacted overall confidence at the retail level, including the Sport & Cargo Carriers category. The performance of the bike market was also weaker than expected in the U.S.”

Thule’s net sales for the quarter amounted to SEK 1,795m (1,689), corresponding to an increase of 6.3 percent. Adjusted for exchange rate fluctuations, sales rose 8.2 percent.

Operating income amounted to SEK 417m (370), corresponding to an increase of 12.7 percent and a margin of 23.2 percent (21.9). Underlying EBIT was SEK 420m (374) and adjusted for exchange rate fluctuations, underlying EBIT rose 9.9 percent and the margin improved 0.4 percentage points.

Net income was 308 million krona ($209 million), with net income of 308 krona.

Topics associated with this article: Earnings/Financial Reports

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