Husqvarna Q2 profit slightly misses forecasts as Europe weighs (updated)
UPDATE 1-Husqvarna Q2 profit slightly misses forecasts as Europe weighs Adds context in paragraph 2, results details and CEO quote in bullet points
July 17 (Reuters) - Swedish maker of garden equipment and tools Husqvarna HUSQb.ST reported slightly below-expected second-quarter operating earnings on Friday as weaker European sales and higher costs offset growth and savings in North America.
The April-June period is Husqvarna's key demand test, as the peak gardening season shows whether consumers are buying products at a pace strong enough to support retailers' spring inventories.
Q2 EBIT fell to 1.60 billion Swedish crowns ($165.54 million) from 2.06 billion a year earlier, slightly below analysts' expectations of 1.64 billion.
"Weak consumer sentiment continued to weigh on demand, while unfavorable weather in Europe during the first six weeks of the quarter further slowed sell-out and replenishment," CEO Glen Instone said in a statement.
Net sales declined by 6% to 14.38 billion crowns, missing the 14.59 billion expected by analysts.
Husqvarna said results included 240 million crowns in tariff refunds.
The company raised its cost-savings target to 3 billion crowns by the end of 2028, from current run-rate savings of about 630 million crowns.
($1 = 9.6654 Swedish crowns)
(Reporting by Jesus Calero; editing by Bartosz Dabrowski)
((jesus.calero@thomsonreuters.com))
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