STOCKHOLM (BRAIN) — Thule Group first-quarter net sales increased 10% year-over-year, aided by the acquisition of Quad Lock, but North American organic sales declined, leading the company to implement changes to boost that market.
Because of what CEO and President Mattias Ankarberg called a "challenging U.S. market," Thule has a new sales organization in place with a management team specifically responsible for North America. Thule announced last week it will close its Longmont, Colorado, office and lay off 22 employees.
Ankarberg said two new bike carriers were developed specifically for the North American market and is investing in pickup truck carriers, an area "where we have not launched any new products in several years," he said.
Because of the increased tariffs, price increases will occur in North America, even though Thule has two U.S. factories, Ankarberg said.
Overall net sales for the quarter ending in March were SEK 2,662 million ($276 million), up from SEK 2,420 million at the same time last year. Despite North American organic sales decreasing 13%, net sales there increased 11.2% year-over-year.
Year-over-year net income dropped 11.4%, from SEK 300 million to SEK 266 million. Earnings per share decreased 13.1%, from SEK 2.83, compared with SEK 2.46 at the same time last year.
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote is at Marketwatch.com.
