Husqvarna warns of Q3 sales drop, no profit, due to weak consumer spending (updated)

Husqvarna AB

11/09/2024 06:52

(Adds quote in paragraph 3, detail from statement in paragraphs
1, 2, 5, share price in final paragraph, COPENHAGEN dateline)
       COPENHAGEN, Sept 10 (Reuters) - Sweden's Husqvarna
 HUSQb.ST  expects a 5% decline in its third quarter organic
sales compared with last year and an operating result around
zero due to challenging market conditions and restrained
consumer spending, the company said late on Tuesday.
        The garden equipment and tools maker, which in July
reported a slump of 9% year-on-year in second-quarter sales, is
now accelerating its cost savings programs and will outline new
measures when it publish its third-quarter earnings on Oct. 23.
        "The current market situation is weak and has a
substantial effect on our business, thus we continue to focus on
our mitigating activities," CEO Pavel Hajman said in a
statement.
  
     The company benefited from the home improvements trend
during the pandemic, but saw demand softening last year, as high
inflation took a toll on consumer spending.
    Cash flow was expected to remain strong, partly driven by
reductions in the group's inventory levels, Husqvarna said.
        The company's share price has fallen by 19.6%
year-to-date. Trade in the stock is due to resume at 0700 GMT on
Wednesday.
  

 (Reporting by Stine Jacobsen in Copenhagen and Urvi Dugar in
Bengaluru
Editing by Chris Reese and Terje Solsvik)
 ((UrviManoj.Dugar@thomsonreuters.com;))