STOCKHOLM (BRAIN) — Thule Group net sales fell 23% year-over-year as global demand for bike products waned because of high inventory levels.
Net sales for the quarter were SEK 2.13 million ($196.3 million), in line with what CEO and President Magnus Welander predicted in his mid-quarter financial statement to investors. At the same time last year, net sales were SEK 2.77 million.
Factoring in currency adjustment, sales declined 29%. Operating profit, which Welander also predicted would drop, fell 71% year-over-year to SEK 193 million.
Thule's Americas division laid off 34 employees from management, product development, and manufacturing earlier this month
Commenting on Thursday's report, Welander said higher shipping costs for growing product lines like roof boxes and RV awnings also affected the bottom line.
"The coming quarters, as already communicated, we will be facing a challenged market with a greater uncertainty in regards to how consumers' purchasing desire is impacted in an uncertain world as well as retailers that will strive to keep inventory levels low," Welander said.
Net income decreased 73% year-over-year, from SEK 516 million to SEK 137 million. Earnings per share for the quarter was SEK 4.94, compared with SEK 1.31.
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote is at Marketwatch.com.
