Third-Quarter Market Conditions for Husqvarna Group
As the third quarter unfolds, Husqvarna Group is operating in a tougher market than usual. Restrictive consumer spending continues to weigh on demand, and it shows in both sales and operating results this season. With the gardening season nearing its end, many retail partners and servicing dealers are also working down their inventories, which further dampens short-term sell-in.
These dynamics—tighter wallets and intentional inventory reductions—set the backdrop for the remainder of the quarter. It’s a challenging mix, and the company is managing it with a clear view of what it can control and what it must absorb.
How Financial Performance Is Tracking
Current expectations point to an organic sales decline of roughly 5% compared with last year. Operating income is anticipated to be close to break-even for the quarter. The margin picture is under pressure, driven by lower capacity utilization and more intensive promotional activity.
In short: volumes are softer, fixed costs are spread over fewer units, and pricing support has increased—together, these factors narrow margins. The near-term focus is therefore on execution and efficiency while protecting key growth areas.
Actions Underway to Meet the Moment
In response, Husqvarna Group is intensifying its cost-saving programs. The leadership team is concentrating on operational efficiency and is preparing additional mitigating measures. These steps—aimed at both the cost base and execution—will be outlined in more detail in the upcoming third-quarter report.
The approach is straightforward: reduce what can be reduced, streamline how work gets done, and keep a steady hand on priorities that matter for the long term.
Where Growth Efforts Are Focused
Conditions remain tough, yet the company’s direction is steady. CEO Pavel Hajman underscores the commitment to improve sales in prioritized areas: robotic mowers for the professional market, consumer battery products, and parts and accessories. These areas are central to the strategy and remain in focus.
Husqvarna Group is making significant investments to support these categories and has planned product launches for the coming year. The aim is clear—strengthen positions where demand is shifting, build on core capabilities, and meet customers with the right products at the right time.
Third-Quarter Report Timing
Investors and market watchers can expect the comprehensive third-quarter report in late October. That report will provide deeper insight into current performance, margin drivers, and the near-term outlook for Husqvarna Group.
Contact Information
For additional information about Husqvarna Group’s performance or media inquiries, please contact Henrik Sjöström, Head of External Communications, at +46 727 15 77 85 or via email at press@husqvarnagroup.com. For investor-related questions, reach out to Johan Andersson, Vice President Investor Relations, at +46 702 100 451 or via email at ir@husqvarnagroup.com.
Frequently Asked Questions
What’s putting pressure on Husqvarna Group this quarter?
Two things stand out: consumer spending remains restricted, and as the gardening season winds down, retailers and servicing dealers are reducing inventories. Together, these factors soften demand and weigh on near-term sales and operating results.
How is the company responding to these market conditions?
The Group is stepping up cost-saving initiatives and sharpening operational efficiency. At the same time, it’s keeping investment behind priority categories—robotic mowers for professionals, consumer battery products, and parts and accessories—to support future growth.
What does this mean for third-quarter financials?
Organic sales are expected to decline by about 5% year over year, and operating income is anticipated to be near break-even. Lower capacity utilization and heightened promotional activity are the key margin headwinds this season.
Who should I contact for media or investor questions?
For media, contact Henrik Sjöström, Head of External Communications (+46 727 15 77 85). For investors, contact Johan Andersson, Vice President Investor Relations (+46 702 100 451). Email is available for both: press inquiries at the media address and investor inquiries at the IR address listed above.
When will the third-quarter report be published?
The report is expected in late October 2024. It will include further detail on performance, margin effects, and the actions the company is taking.
