Thule Group (THULE) Q4 2024 earnings summary

Executive summary

• Returned to profitable growth in 2024 despite challenging markets, with 5% full-year sales growth and 7% Q4 growth year-over-year, driven by major product launches and expansion into new categories such as dog transportation and child car seats.

• Acquired Quad Lock, a global leader in performance phone mounts, contributing to growth, margin improvement, and DTC expansion; also acquired Reacha in July 2024.

• Achieved record international design awards and ranked among the top 50 global companies for sustainability by Sustainalytics.

• Record product development investment at SEK 670 million (7% of revenue), with launches in new D2C markets and Thule-branded stores.

• Dog transportation products and car seats launched in over 20 European countries, achieving best first-year sales and top safety ratings.

Financial highlights

• Full-year 2024 net sales reached SEK 9,541m, up 5% year-over-year; Q4 sales were SEK 1,678m, up 7% year-over-year.

• Organic growth for the year was 3.5%; Q4 organic growth was flat.

• All-time high gross margin of 42.7% for the year, with Q4 at 41.6%.

• Adjusted EBIT margin for 2024 at 17.0%, up from 16.5% in 2023; Q4 adjusted EBIT margin was 3.8%.

• Net income for the year was SEK 1,122m; strong cash flow from operations at SEK 2,310m, aided by a SEK 500m inventory reduction.

• Board proposes a dividend of SEK 8.30 per share, representing 75% of net income.

Outlook and guidance

• Market expected to remain challenging in North America and RV OE, but better in Europe and premium bike products.

• Four priorities for 2025: accelerate product launches, scale new categories, expand D2C and marketing, and drive supply chain efficiency.

• Targeting further SEK 200m inventory reduction in 2025; continued investment in product development at ~7% of revenue.

• Expecting more product launches in Q1 2025 than ever before, including new strollers, roof boxes, and bike carriers.

• Market outlook remains uncertain due to geopolitical risks, trade tariffs, and macroeconomic volatility.