Sweden's Husqvarna misses profit view on weak North American demand; CEO to step down

Husqvarna AB

24/04/2025 06:37

By Jesus  Calero

April 24 (Reuters) -
Swedish garden equipment maker Husqvarna HUSQb.ST reported first-quarter operating profit below expectations on Thursday, hit by soft demand in North America, currency headwinds and lower prices.

The company's CEO Pavel Hajman also announced he would step down once a successor is found, with the transition expected to take place in late 2025.

WHY IT'S IMPORTANT

Husqvarna's first quarter is its main sell-in period, when products are shipped to retailers ahead of the spring season, but attention is already turning to how they'll sell through to customers in the second quarter.

Husqvarna has previously warned of weaker sales and operating losses, citing soft consumer demand, retailer destocking and a tougher product mix.

Sales of robotic lawnmowers declined around 10% in 2024, raising questions about potential market share losses or whether the drop mainly reflects tough comparisons with 2023, when Husqvarna rebounded from earlier supply chain constraints.

The company said it saw 16% growth in robotic mower sales during the first quarter, driven by professional and consumer demand in Europe, even as overall market conditions remained challenging due to ongoing economic uncertainty.

Additionally, the 20% tariffs imposed under U.S. President Donald Trump's administration on European Union goods could add pressure to the company's costs or pricing in the U.S. market.

KEY QUOTES

"(On tariffs) We are implementing price increases and conducting a review of our supply chain to mitigate the effects," Huqvarna said in a statement.

"This includes product cost reductions and reduced complexity. We are also actively investing in and promoting the growth of services and aftermarket revenue streams," the company added.

BY THE NUMBERS

Husqvarna's earnings before interest and tax fell 21% to 1.53 billion Swedish crowns ($157.97 million) in the quarter, missing analysts' average forecast of 1.71 billion crowns per data compiled by LSEG.

Sales were flat at 14.7 billion Swedish crowns, slightly beating analysts' expectations of 14.55 billion crowns.

($1 = 9.6855 Swedish crowns)

 (Reporting by Jesus Calero; Editing by Varun H K)

 ((Jesus.calero@thomsonreuters.com))