STOCKHOLM (BRAIN) — Thule Group's first-quarter net sales were down 26.6% year-over-year, largely due to declining bike-product demand from retailers lowering inventory levels.
Net sales for the quarter ending in March were SEK 2,226 million ($215.2 million), compared with SEK 3,034 million at the same time last year. Thule's inventory decreased in the quarter by SEK 158 million, "which was in line with our plans," said CEO and President Magnus Welander.
Region Americas' sales decreased 45.2% after currency adjustment during the first quarter, with what Welander termed a "substantial decline" in bike-related products year-over-year.
"Inventory levels typically increase significantly in the first quarter ahead of the high season," Welander said. "In 2022, inventory increased SEK 469 million in the first quarter. The significantly lower production level impacted the utilization rates of the Group's production units. At the end of the quarter, some 900 fewer people were active in manufacturing compared with the same time prior year. Our tried and tested model to ensure flexibility and adaptation to different production volumes is functioning well."
Year-over-year net income was down 47.9%, from SEK 527 million to SEK 275 million. Earnings per share was SEK 2.63, compared with SEK 5.04 at the same time last year.
The Southeast Asia, Japan, and China markets performed well in the first quarter, according to Thule, where sales of bags increased compared with 2022. Customer demand from countries close to Ukraine also grew, Thule said, compared with 2022 when sales came to a standstill in March after Russia's invasion of Ukraine.
Categories that had growth included RV products, packs, bags, and luggage.
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote is at Marketwatch.com.
