Thule's third-quarter sales rise 3%, slightly below analyst expectations

what happened

According to Reuters, sales at Swedish sports and outdoor gear maker Thule rose 3% in the third quarter to SEK 2.60 billion. That was slightly below the SEK 2.62 billion consensus of six analysts, a deviation of less than 1%. Adjusted earnings per share reached SEK 3.65, while the operating margin improved to 20% from 17.9%.

Organic revenue in Europe rose 3.9%, offsetting declines elsewhere. Demand for premium products, including new launches such as Thule Epos Park Secure and Arcos XL, stayed strong despite cautious consumer spending. Tariff refunds of SEK 52 million contributed to operating income. The company also appointed a new chairman after a board leadership change.

why it matters

Thule keeps its long-term target of 7% annual organic sales growth and an adjusted EBIT margin of 20% over the medium term. Management expects challenging market conditions to persist in the short term. The median 12-month price target from Wall Street is SEK 260, about 31.5% above the October 21 close of SEK 197.70, and most recommendations on the shares are buy.

market impact

Thule and consumer outdoor gear sector: results close to forecasts with a higher margin, but cautious demand keeps pressure on growth

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