Thule Group President and CEO Mattias Ankarberg reported in an investor letter that the company was growing despite a weak North America business in the first quarter and increased uncertainty affecting the rest of the world. Nevertheless, he said, continued efforts to create a larger, more profitable Thule delivered results.
Sales for the quarter increased 10.0 percent year-over-year (y/y) to SEK 2.66 billion but organic sales fell 3 percent y/y.
Thule Group reports in Swedish krona (SEK) currency.
“The sales growth of 10 percent came from delivering on our priorities. New Thule products resulted in growth despite a challenging market, recently launched product categories of dog transportation and car seats added sales, the addition of the performance phone mounts category through the acquired Quad Lock boosted sales significantly and our DTC1 channel posted solid growth,” Ankarberg detailed.
Europe
Region Europe net sales totaled SEK 1.89 billion in the first quarter, up 6.9 percent from SEK 1.77 billion in Q1 last year. Organically, region sales growth increased 0.4 percent y/y.
The increase in sales in the quarter was said to be primarily related to bike-related products as well as roof racks and roof boxes. The RV and camper van products are experiencing a weaker period but, despite this, sales remained largely unchanged for the quarter. In Europe, additional markets continue to be launched via thule.com, and during the first quarter Norway was added.
North America
Region North America net sales amounted to SEK 555 million in Q1, up 11.2 percent from SEK 499 million in Q1 last year. Ankarberg said the North American market “clearly worsened” during the quarter as organic sales in North America declined 13 percent y/y.
The North American market reportedly “remained challenging” during the first quarter. Sales of bike-related products performed well, while sales in the cargo boxes and roof rack category declined marginally. Growth was positive in Canada, while sales declined in the U.S.
Rest of World
Region Rest of World net sales amounted to SEK 215 million, a 43.1 percent increase from SEK 150 million in the year-ago quarter. Organically, region sales declined 9.3 percent y/y.
Sales in South America posted a more favorable trend than sales in Asia.
Category Summary
Sport & Cargo Carriers
Sport & Cargo Carriers sales declined 2 percent organically in the first quarter. Sales for the largest subcategory, Bike Carriers, increased as a result of launches at the end of the preceding year. An additional bike carrier was launched in the quarter, Thule Verse, specially adapted for the North American market. Sales in the Cargo Boxes and roof rack categories also increased.
An updated version of Thule’s best-selling roof box in the mid-price segment, Thule Force 3, was launched
in the quarter. In addition, the product offering was expanded with the Thule Santu, which is a cargo box
that attaches to the tow bar. Thule Santu can also be combined with products for the transportation of bikes. Sport & Cargo Carriers accounted for 50 percent of total sales for the first quarter.
RV Products
In RV Products, which are 95 percent generated in Europe, sales increased 1 percent organically year-over-year, which was said to be the first time since the first quarter of 2023 that the category has posted positive growth. Thule said industry has been experiencing a weaker period for some time. Sales to retailers increased, while sales to manufacturers decreased. RV Products accounted for 20 percent of total sales in the quarter.
Bags & Mounts
Bags & Mounts has increased from 9 to 18 percent of total sales on the back of the acquisition of Quad Lock. Bags & Mounts’ sales declined 14 percent organically year-on-year. Sales have declined, primarily because the legacy products in bags are actively being phased out. Quad Lock has continued to develop its market-leading position and sales increased over 20 percent during the quarter.
Active with Kids and Dogs
In 2024, two new categories were launched within Active with Kids & Dogs – dog transportation and car
seats. Thule Allax, a dog transportation crate for cars, and Thule Bexey, a bike trailer for dog transportation, reportedly continued to perform well during the quarter.
The Thule Maple and Thule Elm child car seats also positively impacted first-quarter sales. In total, currency-adjusted sales declined 6 percent for the category year-over-year, said to be mainly due to a cautious bike market with retailers wanting to maintain low inventory levels. Active with Kids & Dogs accounted for 12 percent of total sales.
Income Statement Summary
The gross margin was said to be “the highest ever,” improving 360 basis points y/y to 44.8 percent of sales, driven by a continued positive organic trend and by Quad Lock’s higher gross margin.
Despite a phasing of product development costs into the first quarter, operating profit was said to be in line with last year. Operating income for the quarter amounted to SEK 401 million, or 15.1 percent of sales), down a little from SEK 412 million, or 17.0 percent of sales, in the year-ago period.
“This year, we are set to launch more products earlier in the year to maximize sales throughout the spring season,” the CEO added. “This means higher product development costs in the first half of the year, which will impact the margin in the short term.” He said that without the changed phasing of product development costs, the EBIT margin would have been flat to last year.
Net income for the quarter was SEK 266 million, or SEK 2.46 per share, compared to SEK 300 million, or SEK 2.80 per share, in the 2024 Q1 period.
Cash flow from operating activities was challenged, with a total outflow of SEK 334 million in Q1, compared to in flow of SEK 89 million for the year-ago quarter.
New Product Pipeline
“As in previous years, we are set to launch many new products this year, and several of these were already launched in the first quarter,” Ankarberg noted. “Our updated mid-priced Thule Force roof-mounted cargo box is off to a good start. The new generation of our highest selling bike carrier Thule Easyfold 3 made a strong contribution to sales growth and the new North American bike carrier, Thule Verse has been warmly received. We are already able to confirm that 2025 will be another year in which our product design will be strongly acknowledged, having recently won seven iF Design Awards. Additional important launches are set for the second quarter.”
Ankarberg said the launch of dog transportation and car seats in 2024 was successful, and efforts to expand these categories continued in the first quarter of 2025.
“Our car seats are now available in 30 countries, which adds new revenue,” he shared. “Later this year, we will launch a high back booster seat with back and neck support for somewhat older children. Dog products made an excellent start last year and growth remained robust in the first quarter. Thule Cappy, a crash-tested dog harness, will be launched in the second quarter.”
Historically, many of Thule’s entries into new categories have taken place through acquisitions that have been integrated and developed into the Thule brand line. Late last year, the company acquired Quad Lock, the global market leader for performance phone mounts for cyclists, motorcyclists and other adventurers.
“As a global market leader in a growing niche, with the best products in the market, a strong history of innovation and product development and being known for quality, safety and an active life outdoors – Quad Lock fits very well with Thule and our strategy,” the CEO suggested. “The beginning of our collaboration has been positive with sales increasing over 20 percent in the first quarter, successive integration in identified areas and with employees from both organizations already having switched locations between Australia and Sweden. The growth opportunities here are plentiful.”
Changes in North America
In the challenging U.S. market, the company said it recently implemented a number of changes to increase its own competitiveness in the market.
A new sales organization is reportedly now in place with a management team specifically responsible for North America. At the same time, Thule is implementing efficiency measures by closing the office included in the acquisition of Case Logic in 2007 and integrating its employees at the regional office in Connecticut.
As previously reported by SGB Executive, see below, the company recently filed a Worker Adjustment and Retraining Notification (WARN) Notice with the State of Colorado, indicating that the company will eliminate 22 positions in its Longmont, CO location in Boulder County. The action is expected to occur by October 3, 2025.
The Notice said that the affected positions included product managers and designers, product development, pattern designers, image and video managers, graphic artists, CSM logistics analysts, EDI programmers, and system administrators.
“We are focusing our investments on growing niches where we hold strong positions,” Ankarberg explained. “We are now developing many new and innovative bike carriers and both Thule Verse and Thule Revert – specifically developed for the North American market — sold out immediately after being launched.
He said that are reinvesting in pick-up trucks, a category where Thule has not launched any new products in several years, and are set to launch Thule Xscape this winter, an easy-to-install premium product enabling the safe transportation of skis, surfboards, rooftop tents and other equipment.
“We manufacture both of these product categories locally in the U.S.,” he continued. “At the same time, we are now stopping our child car seat project for the U.S. market. Competition is high, the premium segment remains small and the investment is costly. We continue to invest in car seats in Europe, where we have had a good start and the potential is much greater.”
Ankarberg announced that Thule is implementing price increases in North America to offset cost increases from the newly imposed tariffs, even though the company has two of its own factories in the U.S.
“In the beginning of April, the Group management visited the U.S.,” the CEO said as he reflected on the meetings. “We have driven employees, a strong brand and loyal customers that appreciate our investments in new products in the current market conditions. Another good sign was that the most intense internal discussions concerned how to best meet demand of our own new products.”
Strong Position and Long-Term Investments
Ankarberg said Thule is well positioned despite a challenging market.
“We are global market leaders in our most important product categories and sell premium products to enthusiasts who are willing to pay,” he said. “We have our own manufacturing in Europe and North America, and a financial position that allows us to invest for the long term. We also have extensive experience of managing fluctuations in our business environment, and with the help of our skilled employees, we will continue adapting our operations to market conditions.”
Thule Group President and CEO Mattias Ankarberg reported in an investor letter that the company was growing despite weak North American business in the first quarter and increased uncertainty affecting the rest of the world. Nevertheless, he said continued efforts to create a larger, more profitable Thule delivered results.
Sales for the quarter increased 10.0 percent year-over-year (y/y) to SEK 2.66 billion, but organic sales fell 3 percent y/y.
Thule Group reports in Swedish krona (SEK) currency.
“The sales growth of 10 percent came from delivering on our priorities. New Thule products resulted in growth despite a challenging market, recently launched product categories of dog transportation and car seats added sales, the addition of the performance phone mounts category through the acquired Quad Lock boosted sales significantly and our DTC channel posted solid growth,” Ankarberg detailed.
Europe
Region Europe net sales totaled SEK 1.89 billion in the first quarter, up 6.9 percent from SEK 1.77 billion in Q1 last year. Organically, region sales growth increased 0.4 percent y/y.
The increase in sales in the quarter was said to be primarily related to bike-related products and roof racks and boxes. The RV and camper van products are experiencing a weaker period but, despite this, sales remained largely unchanged for the quarter. In Europe, the company continues to launch additional markets via thule.com, and it added Norway during the first quarter.
North America
Region North America net sales amounted to SEK 555 million in Q1, up 11.2 percent from SEK 499 million in Q1 last year. Ankarberg said the North American market “clearly worsened” during the quarter as organic sales in North America declined 13 percent y/y.
The North American market reportedly “remained challenging” during the first quarter. Sales of bike-related products performed well, while sales in the cargo boxes and roof rack category declined marginally. Growth was positive in Canada, while sales fell in the U.S.
Rest of World
Region Rest of World net sales amounted to SEK 215 million, a 43.1 percent increase from SEK 150 million in the year-ago quarter. Organically, region sales declined 9.3 percent y/y. Sales in South America posted a more favorable trend than sales in Asia.
Category Summary
Sport & Cargo Carriers
Sport & Cargo Carriers sales declined 2 percent organically in the first quarter. Sales for the largest subcategory, Bike Carriers, increased due to launches at the end of the preceding year. The company launched an additional bike carrier in the quarter, Thule Verse, adapted for the North American market. Sales in the Cargo Boxes and Roof Rack categories also increased.
An updated version of Thule’s best-selling roof box in the mid-price segment, Thule Force 3, was launched in the quarter. In addition, the company expanded its product offering with the Thule Santu cargo box that attaches to the tow bar. Thule Santu can also combine with products for the transportation of bikes. Sport & Cargo Carriers accounted for 50 percent of total sales for the first quarter.
RV Products
In RV Products, which are 95 percent generated in Europe, sales increased 1 percent organically year-over-year, which was said to be the first time since the first quarter of 2023 that the category has posted positive growth. Thule said the industry has been experiencing a weaker period for some time. Sales to retailers increased, while sales to manufacturers decreased. RV Products accounted for 20 percent of total sales in the quarter.
Bags and Mounts
Bags and Mounts has increased from 9 percent to 18 percent of total sales on the back of the acquisition of Quad Lock. Bags and Mounts’ sales declined 14 percent organically year-on-year. Sales have declined, primarily because the company is actively phasing out its legacy bag products. Quad Lock has continued to develop its market position, and sales increased over 20 percent during the quarter.
Active with Kids and Dogs
In 2024, the company launched two new categories within Active with Kids and Dogs: dog transportation and car seats. Thule Allax, a dog transportation crate for cars, and Thule Bexey, a bike trailer for dog transportation, reportedly continued to perform well during the quarter. The Thule Maple and Thule Elm child car seats also positively impacted first-quarter sales. In total, currency-adjusted sales declined 6 percent for the category year-over-year, which is mainly due to a cautious bike market with retailers wanting to maintain low inventory levels. Active with Kids & Dogs accounted for 12 percent of total sales.
Income Statement Summary
The gross margin was said to be “the highest ever,” improving 360 basis points y/y to 44.8 percent of sales, driven by a continued positive organic trend and by Quad Lock’s higher gross margin. Despite a phasing of product development costs into the first quarter, operating profit was in line with last year. Operating income for the quarter amounted to SEK 401 million, or 15.1 percent of sales, down slightly from SEK 412 million, or 17.0 percent of sales, in the year-ago period.
“This year, we are set to launch more products earlier in the year to maximize sales throughout the spring season,” the CEO added. “This means higher product development costs in the first half of the year, which will impact the margin in the short term.” He said that the EBIT margin would have been flat to last year without the changed phasing of product development costs.
Net income for the quarter was SEK 266 million, or SEK 2.46 per share, compared to SEK 300 million, or SEK 2.80 per share, in the 2024 Q1 period. Cash flow from operating activities was challenged, with a total outflow of SEK 334 million in Q1, compared to inflow of SEK 89 million for the year-ago quarter.
New Product Pipeline
“As in previous years, we are set to launch many new products this year, and several of these were already launched in the first quarter,” Ankarberg noted. “Our updated mid-priced Thule Force roof-mounted cargo box is off to a good start. The new generation of our highest-selling bike carrier, Thule Easyfold 3, made a strong contribution to sales growth and the new North American bike carrier, Thule Verse, has been warmly received. We are already able to confirm that 2025 will be another year in which our product design will be strongly acknowledged, having recently won seven iF Design Awards. Additional important launches are set for the second quarter.”
Ankarberg said the launch of dog transportation and car seats in 2024 was successful, and efforts to expand these categories continued in the first quarter of 2025.
“Our car seats are now available in 30 countries, which adds new revenue,” he shared. “Later this year, we will launch a high back booster seat with back and neck support for somewhat older children. Dog products made an excellent start last year and growth remained robust in the first quarter. Thule Cappy, a crash-tested dog harness, will be launched in the second quarter.”
Historically, many of Thule’s entries into new categories have occurred through acquisitions integrated and developed into the Thule brand line. Late last year, the company acquired Quad Lock performance phone mounts for cyclists, motorcyclists and other adventurers.
“As a global market leader in a growing niche, with the best products in the market, a strong history of innovation and product development and being known for quality, safety and an active life outdoors, Quad Lock fits very well with Thule and our strategy,” the CEO suggested. “The beginning of our collaboration has been positive, with sales increasing over 20 percent in the first quarter, successive integration in identified areas and with employees from both organizations already having switched locations between Australia and Sweden. The growth opportunities here are plentiful.”
Changes in North America
The company recently implemented several changes in the challenging U.S. market to increase its market competitiveness. A new sales organization is reportedly in place, and a management team is responsible for North America. At the same time, Thule is implementing efficiency measures by closing the office that it included in the acquisition of Case Logic in 2007 and integrating its employees at the regional office in Connecticut.
As reported by SGB Executive, the company recently filed a Worker Adjustment and Retraining Notification (WARN) Notice with the State of Colorado, indicating that the company will eliminate 22 positions in its Longmont, CO location in Boulder County. The action is expected to occur by October 3, 2025.
The Notice said the affected positions included product managers and designers, product development, pattern designers, image and video managers, graphic artists, CSM logistics analysts, EDI programmers, and system administrators.
“We are focusing our investments on growing niches where we hold strong positions,” Ankarberg explained. “We are now developing many new and innovative bike carriers, and both Thule Verse and Thule Revert, specifically developed for the North American market, sold out immediately after being launched.”
Ankarberg said that the company is reinvesting in pick-up trucks, a category where Thule has not launched any new products in several years, and is set to launch Thule Xscape this winter, enabling the safe transportation of skis, surfboards, rooftop tents, and other equipment.
“We manufacture both of these product categories locally in the U.S.,” Ankarberg continued. “At the same time, we are now stopping our child car seat project for the U.S. market. Competition is high, the premium segment remains small and the investment is costly. We continue to invest in car seats in Europe, where we have had a good start and the potential is much greater.”
Ankarberg announced that Thule is implementing price increases in North America to offset cost increases from the newly imposed tariffs, even though the company has two owned factories in the U.S.
“In the beginning of April, the Group management visited the U.S.,” the CEO said as he reflected on the meetings. “We have driven employees, a strong brand, and loyal customers who appreciate our investments in new products in the current market conditions. Another good sign was that the most intense internal discussions concerned how to best meet demand of our own new products.”
Strong Position and Long-Term Investments
Ankarberg said Thule is well positioned despite a challenging market.
“We are global market leaders in our most important product categories and sell premium products to enthusiasts who are willing to pay,” he said. “We have our own manufacturing in Europe and North America and a financial position that allows us to invest for the long term. We also have extensive experience of managing fluctuations in our business environment, and with the help of our skilled employees, we will continue adapting our operations to market conditions.”
Ankarberg said the company also continues to make investments in areas that increase their competitiveness and create value for Thule:
- Continue to invest in product development. The changes we have made in North America are further reinforcing our focus on organic growth in attractive niches.
- Succeed in more product categories at the same time. We are building on our successful start in dog transportation, car seats and a successful initial period with Quad Lock.
- Increase visibility for consumers. Selling more products to existing customers is another successful path to growth.
- Increase efficiency and capacity utilization in our supply chain.
“We expect the market to remain difficult, particularly in North America,” he closed. “We are facing the future with strong market positions, a track record of adaptability and long-term investments. I look forward to continuing the journey toward a larger, more profitable Thule — and the many new products that will be launched already in the second quarter!”
Image courtesy Thule Group
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For more SGB Executive coverage on Thule filing a Worker Adjustment and Retraining Notification (WARN) Notice with the State of Colorado, see below.
EXEC: Thule, Inc. Files Warn Notice to Eliminate 22 Positions in Colorado
