EXEC: Thule Group Gets Lift from “Champion” Product Categories in Q1

Thule Group President and CEO Mattias Ankarberg reported that the global sports and outdoor company saw a good start to the year with both organic sales and profitability increasing in the first quarter despite challenging market conditions.

“This positive trend is driven by our focus on building Champion categories and implementing efficiency improvements,” Ankarberg said in a letter to investors accompanying the Group’s first quarter earnings release

Net sales for the first quarter of 2026 amounted to SEK 2,573 million, representing a decrease of 3.4 percent year-over-year (y/y), of which 7.3 percent was said to be attributable to changes in exchange rates. Organic sales increased by 3.9 percent.

The Group said sales and operating income are typically affected by seasonal variations. Since a significant portion of the company’s sales comes from bike-related products, sales are usually higher during the second and third quarters. Sales are typically lower in the first and fourth quarters, when a larger proportion of revenue comes from winter-related products. Thule has adapted its production processes and supply chains to manage these variations.

Ankarberg went on to say that new Thule products are driving growth, and the company will be launching many new products this year as well.

“Going forward, our launches will focus on building so-called Champions categories,” the CEO wrote in his letter. “Champions are product categories where Thule is the clear market leader and where we have the ability to out-innovate our competitors. We currently have six Champions, and our top priority is to grow them through product development.”

For the first quarter, he said they company continued to strengthen its largest product area, Sport & Cargo Carriers, where there are three Champion categories.

“We launched two new products at lower price points, and both the new Thule Pulse roof box and the Thule VeloLite bike carrier are off to a good start,” the CEO said. “Even if our sales are primarily in the premium segment, these products enable more consumers to use Thule products.” Growth in RV Products was said to be aided by the market’s recovery.

“Our long-term focus on product development has also made a difference, and a large part of Thule’s growth came from new products launched over the past two years,”  Ankarberg noted.

“In the Bags & Mounts product area, our Champion for performance phone mounts, which came with the acquisition of Quad Lock, continued to grow well,” he said

“In addition to growing existing Champions, we are building new ones,” Ankarberg continued. “The goal is to increase from the current six [Champion categories] to 10 by 2035. We currently have three promising candidates that fit the profile for Champion categories but are still small: All-Terrain and Jogging Strollers, Dog Transportation Products, and Child Car Seats.”

He said all three continued to grow rapidly in the first quarter, and organic growth for the Active with Kids & Dogs product area, which includes these three categories, was 11 percent y/y. “Growth in our three Champions candidates therefore made a significant contribution to total organic growth,” he said.

Region Summary

Region Europe
Net sales for Region Europe amounted to SEK 1,890 million in the first quarter, a decrease of 0.1 percent y/y. Organically, sales reportedly increased by 5.2 percent. All four product areas were said to have experienced growth for the period.

The biggest growth was in the Active with Kids & Dogs product area. The Group said all three Champion candidates, All-Terrain and Jogging Strollers, Dog Transportation Products, and Child Car Seats, grew rapidly.

The RV Products product area reportedly saw “good growth” in the period. The company noted that the RV market has gone through a weaker period but has shown signs of recovery over the past two quarters. Region Europe accounted for 73 percent of sales in the quarter.

Region North America
Net sales for Region North America amounted to SEK 479 million, a decrease of 13.8 percent y/y. Organically, sales decreased by 0.2 percent y/y for the period. The Group said the sales trend has gradually improved over the past few quarters.

• Products specifically developed for the North American market contributed to growth.
• North America accounted for 19 percent of sales in the quarter.
• Performance in Canada was said to be better than in the U.S. region.

“The market remains weak, with cautious retailers and consumers,” the Group noted in its report.

“Over the past year, we have implemented several changes in North America to focus our growth initiatives, streamline the organization, and counter the impact of increased tariffs,” said Ankarberg. “North America as a region has received greater focus, both in terms of product development and sales. The recently launched Thule Xscape, our easy-to-install rack system for pickup trucks, has gotten off to a good start, and in the first quarter we launched Thule Vero, a premium bike carrier for heavier bikes, specifically developed for the North American market.”

Although he admitted the North American market remains “clearly challenging,”  Ankarberg also said these measures are having a positive effect.

“Organic sales remained unchanged in the first quarter, and since the measures implemented last year, the trend has been moving in the right direction each quarter,” the CEO added.

Region Rest of the World
Revenue in the Rest of the World region amounted to SEK 204 million, a decrease of 4.9 percent y/y. Organically, revenue increased by 2.2 percent. The region reportedly accounted for 8 percent of sales in the quarter. Sales in South America reportedly showed better performance in the first quarter than sales in Asia.

Profitability & Expenses
Gross income for the quarter amounted to SEK 1,154 million (1,192), corresponding to a gross margin of 44.8 percent (44.8). The gross margin benefited from price/mix and enhanced operational efficiencies, while higher material costs and tariffs impacted negatively. Operating income Operating income amounted to SEK 424m (401), corresponding to a margin of 16.5 percent (15.1). Operating income was positively impacted by organic growth, an unchanged gross margin, and lower selling and administrative expenses, especially lower product development expenses but also administration costs. Depreciation and amortization amounted to SEK 86m (89). .

In the first quarter, organic sales increased by 4 percent. Sales reported in Swedish kronor decreased due to negative currency effects. The market remained challenging overall, particularly in North America. At the same time, the market for RV products continued to recover. In the first quarter, organic growth was highest in the Active with Kids & Dogs product area, where investments in recent years in dog transportation and child car seats have both contributed significantly. Sales from RV Products also showed good growth. Organic sales increased by 5 percent in Europe and remained unchanged in North America. The trend in North America continued to improve quarter by quarter.

The EBIT margin increased to 16.5 percent (15.1). The gross margin remained unchanged and overhead costs decreased, primarily due to lower product development costs, but also lower administrative costs.
In the area of sustainability, we continue to find ways to reduce emissions from our products. Through active design choices we have, for example, reduced emissions by 53 percent for the new bike carrier Thule VeloLite, compared to the equivalent previous product version.