Thule Group (THULE) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered 2% FX-adjusted sales growth and record gross margin, supported by strong profitability and major new product launches in car seats and dog transportation.

• Net sales reached SEK 3,099m, with net income up 3.7% to SEK 559m and operating income at SEK 732m, margin 23.6%.

• Cash flow from operations was robust at SEK 879m, aided by inventory reduction and strong EBIT.

• Minor acquisition of Reacha expanded the portfolio into watersport and cargo bike trailers.

• Thule was named Red Dot Design Team of the Year 2024, reflecting product innovation and multiple design awards.

Financial highlights

• Q2 net sales were SEK 3,099m, up 2% FX-adjusted year-over-year; gross margin reached a record 44.4%.

• EBIT margin was stable at 23.6%, with EBIT of SEK 732m.

• Net income for Q2 was SEK 559m; earnings per share before dilution were SEK 5.28.

• Cash flow from operations after investments was SEK 819m in H1; cash flow from operations in Q2 was SEK 879m.

• Net debt reduced to SEK 1,753m, with net debt/EBITDA at 1.0x.

Outlook and guidance

• Market conditions remain challenging, especially in RV and North America, with high promotional activity and cautious consumer sentiment.

• The company will focus on innovation, product launches, DTC channel expansion, and supply chain efficiency.

• Inventory reduction target of SEK 200m for 2024 is on track.

• Product development and launch activity will remain high in H2, with further expansion in new categories and geographies.

• Product development costs expected to be flat year-over-year, with higher sales and marketing costs in H1 and a slight decrease in H2.