Thule Group’s sales in the Americas region rose 2 percent adjusted for currency fluctuations in the second quarter “in a challenging market,” according to Thule CEO and President Magnus Welander.

The rate of growth slowed from the 4 percent gain after currency adjustment seen for the first half of the year.

On the brighter side, Europe & ROW (rest of the world) again delivered a strong performance, with a 12 percent currency-adjusted increase in sales in the second quarter, giving a 14 percent increase for the first six months of the year.

Net sales amounted to SEK1,955 million ($238 million), up from SEK1.725 million, corresponding to an increase of 13.3 percent. Adjusted for exchange-rate fluctuations, sales rose 8.6 percent.

“Successful product launches and continued wins with retailers enabled us to deliver a strong result for the second quarter of 2017,” said Welander.

The sales growth, combined with a highly cost-efficient organization, underlying EBIT – after adjustment for exchange-rate fluctuations – rose 14.1 percent and the margin improved 1.2 percentage points.

Underlying EBIT amounted to SEK474 million ($58 million) against SEK414 million, an increase of 14.7 percent and a margin of 24.3 percent versus 24 percent. After adjustment for exchange-rate fluctuations, underlying EBIT rose 14.1 percent and the margin improved 1.2 percentage points. Net income totaled SEK348 million ($42 million), up from SEK304 million.

“The improved profitability was achieved despite rising costs for raw materials and ambitious investments in product development in our newer product categories,” said Welander. “Following the divestment of our Specialty segment during the quarter, we are now a streamlined, brand-driven consumer products company with strong positions in several product categories that make it easier for people to live an active life.”

Among categories, growth in Sport & Cargo Carriers was mainly driven by its bike carriers, with sales of the tow bar-mounted Thule EasyFold XT (Region Europe & ROW) and Thule T2 Pro (Region Americas) increasing, boosted by being test winners in a number of different bike-related media channels.

“In this category we continue to globalize and standardize our product development activities,” said Welander. “During 2017, this has given synergies and efficiency gains in the global rollout of new products such as the Thule Motion XT roof boxes, as well as freeing up resources for our efforts in newer product categories, such as strollers and luggage.”

The Active with Kids category continued to see gains with the help of successful launches of the new Thule Chariot multisport trailers and the Thule Yepp bike seats, and the continued strong growth for the Thule Urban Glide sport strollers. Favorable media coverage and strength among resellers is supporting the category’s momentum.

Said Welander, “Use by consumers varies around the world when it comes to multisport trailers and child bike seats, which are used considerably more in such countries as Germany, the Netherlands and the Nordics, thereby driving sales mostly in the Europe & ROW region. However, our sport strollers are suited to usage patterns that exist globally and these models strengthen the Thule brand in the juvenile product category on a global basis.”

In RVs, the trend in the European motorhome and caravan market was “very positive” and growth is expected in the second half, although at a slower pace.

The bag category is still not showing growth, but the category has shown some stabilization.

“The new Thule Subterra luggage collection for the modern business traveler is showing positive results, although it is still too early to assess how strong the final outcome will be,” said Welander. “Through the successful launches of new hiking backpacks and bike bags, we continue to grow in the area of sports bags. In the more challenging category of Bags for Electronic Devices, we generated growth in small backpacks and laptop cases during the first half of the year. However, especially the US market remained difficult in the traditional Case Logic categories, which had a negative impact on Region Americas sales.”

Welander concluded, “We are now busy with the final preparations for the busy 2017 exhibition season and I feel very satisfied to once again be able to say that we have never before shown so many exciting new products as we will at this year’s exhibitions. We will present these initiatives in more detail at our Capital Markets Day in the autumn.”

Photo courtesy Thule