Thule to add new product categories, inventory returning to normal

The Q1 update from Thule has spoken of two new product categories set for launch in May, at the same time speaking of investments helping the business return inventory levels to normal, despite new challenges.

“As previously announced, we’re investing significant resources to further expand our production capacity to meet the substantial increase in sales. We are satisfied with the projects’ progress, despite longer lead times for everything from building materials to automation equipment,” said CEO Magnus Weylander, adding “We have, thanks to increased capacity, been able to better meet the increased demand during the autumn and beginning of the year. We therefore estimate that inventory levels at retail is back at similar balanced levels ahead of the peak season as before the pandemic.”

Germany, Belgium, the Netherlands, France, the Czech Republic and Spain led trade in the northern hemisphere quarter, while further south Australia, New Zealand and South Africa performed strongly for the group. Meanwhile, the Americas were the standout, producing a 27 percent growth in the quarter after currency adjustment compared to a strong Q1 a year prior.

“We grew in all four product categories and in all markets in the region, and where Canada excelled in particular,” said Weylander.

Net sales for the quarter amounted to SEK 3,034m (£245 million), an increase of 19.5 percent. Adjusted for exchange rate fluctuations, sales increased 13.4 percent. Operating income amounted to SEK 692m (£55.9 million), with a margin of 22.8%.

The results were challenged by a range of factors affecting the world’s industry, namely Thule’s gross income was affected by higher costs for
materials and freight. Alongside, increased sickness related absences affected the workforce enough to get a mention in the update.

The quarter also marked the second opening of a brand store in North America, this time in West Vancouver, Canada. The first opened in Denver back in June of 2021 and adds to own-label store presences already live in Europe, Asia and Latin America.

The new product categories will be revealed in capital markets day in Hillerstorp, Sweden, on Wednesday, May 11. Thule will also present its modernised roof rack factory, its newly opened global development center and, finally, its expanded Test Center.