• Revenue: SEK2.662 billion, a 10% increase from last year.
• Organic Growth: 2.9%, with Europe at +0.4% and North America declining by 12.6%.
• Gross Margin: Increased to 44.8% from 41.2% last year.
• EBITDA: SEK401 million, compared to SEK412 million last year.
• EBIT Margin: 15.1%, impacted by earlier phasing of product launch costs.
• Net Income: SEK266 million for the quarter.
• Cash Flow from Operations: Negative SEK334 million, influenced by seasonal working capital increase.
• Net Debt: Increased by SEK185 million, with a net debt to EBITDA ratio of 1.94%.
• Quad Lock Acquisition: Contributed significantly to gross margin improvement, with over 20% sales momentum.
• Inventory Reduction Target: Aiming to reduce inventory by SEK200 million in 2025.

• Warning! GuruFocus has detected 4 Warning Signs with THLPF.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Thule Group AB (THLPF) reported a 10% increase in total sales compared to the previous year.
• Gross margin reached an all-time high of 44.8%, driven by the acquisition of Quad Lock and improved product mix.
• The company continues to see growth from new Thule products and recently launched product categories.
• Thule Group AB (THLPF) received 7 new design awards in 2025, highlighting its strong product design capabilities.
• The integration of Quad Lock is progressing well, with over 20% sales momentum and maintained high margins.

Negative Points

• North American sales declined by 13%, reflecting a weak market exacerbated by recent tariff announcements.
• Cash flow from operations was negative at SEK334 million, impacted by seasonal working capital increases.
• The EBIT margin decreased to 15.1% from 17% last year, affected by the earlier phasing of product launch costs.
• Retailers are cautious, impacting inventory levels and sales, particularly in North America.
• The company decided to halt the North American car seat project due to a less favorable market outlook.

Q & A Highlights

Q: Could you explain the balance between OpEx and gross margins, considering the company's shift towards higher gross margins and higher OpEx? A: Mattias Ankarberg, CEO: We are pleased with the gross margin development, which has been growing nicely. The increase in SG&A is due to a challenging market and our investment in new product categories. We continue to focus on driving growth, which results in higher gross margins and SG&A, but with a positive net effect. In North America, we are adapting to the market with changes in focus, pricing, and cost management.

Q: How do you view the margin progression towards the 2030 target of SEK20 billion in sales and a 20% EBIT margin? A: Mattias Ankarberg, CEO: Our targets for 2030 remain SEK20 billion in sales and a 20% EBIT margin. We are on track towards these targets, although the marketplace changes over time. We are adapting to the current market conditions and focusing on long-term growth.

Q: What impact do you expect from the tariffs on your operations in the US, and how are you addressing them? A: Toby Lawton, CFO: We have two factories in the US, producing over half of our revenue there. We are impacted by tariffs directly and indirectly, and we are implementing a 10% price increase in the US as of June 1 to offset these impacts. We will continue to monitor and adjust prices as needed.

Q: Can you provide an update on the inventory reduction target for 2025? A: Toby Lawton, CFO: We are confident in achieving our target of reducing inventory by SEK200 million in 2025. The reduction will primarily occur in the second half of the year, following the seasonal pattern of building inventory in Q1 and Q2 and reducing it in Q3 and Q4.

Q: How is the direct-to-consumer (DTC) platform performing, and is it a priority for growth in North America? A: Mattias Ankarberg, CEO: The DTC platform is showing strong growth, well into double digits, outperforming retail channels across geographies. While we are not pushing it at the expense of retail partners, it remains a premium channel option for consumers. The cautious behavior of retailers may be driving more consumers to our DTC platform.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.