Sports firm Thule Q2 sales slightly miss estimates; warns of price hike
Sports firm Thule Q2 sales slightly miss estimates; warns of price hike
Overview
Sweden sports and outdoor firm's Q2 sales rose 0.5%, slightly missing analyst expectations
Adjusted EPS for Q2 rose to SEK 4.98 from SEK 4.75
Profitability improved on higher gross margin and efficiency gains
Outlook
Thule to implement price increases in Q3 to offset rising raw material costs
Company to continue launching new products in Champion categories throughout 2026
Thule sees ongoing efficiency improvements and automation supporting profitability
Result Drivers
PRODUCT AREA GROWTH - All four product areas grew, led by 7.9% organic growth in Active with Kids & Dogs, driven by new products and Champion category expansion
EFFICIENCY IMPROVEMENTS - Improved profitability attributed to efficiency gains, lower overhead costs, and positive product mix effects
REGIONAL PERFORMANCE - Organic revenue increased 4.3% in Europe but fell 2.3% in North America, where inventory reductions at retailers weighed on sales
Company press release: ID:nMFN1l4DyN
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | SEK 3.42 bln | SEK 3.45 bln (6 Analysts) |
Q2 Adjusted EPS |
| SEK 4.98 |
|
Q2 Adjusted Free Cash Flow |
| SEK 824 mln |
|
Q2 EBIT |
| SEK 756 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Thule Group AB is SEK280.00, about 26.4% above its July 17 closing price of SEK221.60
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)