Husqvarna drops after it warns on Q3 sales and profit

Husqvarna AB

11/09/2024 08:20

** Shares in Husqvarna  HUSQb.ST  fall 4.3% after the Swedish
gardening equipment and tools maker said late on Tuesday it
expected a 5% decline in its Q3 organic sales
    ** It cites challenging market conditions and restrained
consumer spending, while the end of the gardening season means
retail partners and servicing dealers are reducing their
inventory levels
    ** It sees Q3 operating income at around break-even, and
says margins are negatively impacted by lower capacity
utilization and promotional activities
    ** "We expect a negative share price reaction in today's
trading session and could see negative double-digit EPS
revisions to consensus numbers for FY-24E," Jefferies says
** Husqvarna also says it will accelerate its ongoing cost
savings programmes
    ** The company's shares, down 23% YTD, are on track for
their worst day sine July 18 if the losses persist
     

(Reporting by Jesus Calero)
((mailto:Jesus.calero@thomsonreuters.com))