SEYMOUR, Conn. (BRAIN) — Thule Group is reporting a net sales increase of 20 percent in its second quarter, a result helped by favorable currency fluctuations. In currency neutral figures, the Sweden-based company saw a 6.4 percent sales increase in the quarter, which ended June 30.
Adjusted for exchange rate fluctuations, underlying EBIT for the quarter rose 8.7 percent and the operating margin improved 0.5 percentage points.
CEO and president Magnus Welander said the results were bolstered by recent successful product launches, including products in the brand's newer categories such as child carriers and backpacks.
The Outdoor & Bags segment accounted for 93 percent of the Thule Group's sales during the quarter, increasing 18.2 percent (5.6 percent after currency adjustment).
Much of that growth was in Europe, however.
"In the Americas region, the trend in the sport and outdoor market remained relatively weak, but the Thule Group grew on the back of new product launches. In the region, the bags for electronic devices category continued its negative performance. In particular, we were impacted by a somewhat weaker Latin American market, a generally weaker trend in camera bags, but also by deliberate commercial decisions to leave some less profitable businesses. Sales for the region increased 22.5 percent (down 2.6 percent after currency adjustment)," Welander said.
The company decided in July to implement a reorganization that will lead to personnel reductions at its operations in the U.S., Belgium and Hong Kong. A total of about 50 positions will be cut.
