Husqvarna Group Faces Ongoing Market Challenges in Q3

Author: Dominic Sanders Updated: 09-10-2024 06:57 PM

Current Market Dynamics Affecting Husqvarna Group

As the third quarter unfolds, Husqvarna Group is navigating through a challenging market landscape. The ongoing restrictive consumer spending has played a significant role in shaping the Group's sales and operating results this season. Additionally, with the gardening season nearing its conclusion, many retail partners and servicing dealers are taking measures to decrease their inventory levels.

Financial Performance Overview

Financial expectations show a potential decline of approximately 5% in organic sales compared to the previous year. Moreover, the Group anticipates an operating income close to break-even points during this period. Factors such as lower capacity utilization and heightened promotional activities have negatively influenced margins.

Strategic Responses to Market Conditions

In response to these market challenges, Husqvarna Group is intensifying its cost-saving programs. The leadership team is committed to enhancing operational efficiency and introducing further mitigating strategies, which will be detailed in the upcoming third-quarter report.

Focus on Growth Areas

The situation at hand continues to be tough, but Husqvarna Group remains resilient. According to CEO Pavel Hajman, the Group is dedicated to strategically improving sales in prioritized areas, including robotic mowers aimed at the professional market, consumer battery products, and parts and accessories. The Company is also making significant investments to boost these sectors, alongside planned product launches in the coming year.

Upcoming Earnings Announcement

Investors and market watchers are looking forward to the comprehensive third-quarter report, which is expected to be released in late October. This announcement will provide deeper insights into the financial state and future direction of the Husqvarna Group.

Contact Information

For those seeking additional information regarding Husqvarna Group’s performance or inquiries, please reach out to Henrik Sjöström, Head of External Communications, at +46 727 15 77 85. Media inquiries can be addressed through email at press@husqvarnagroup.com. Furthermore, investors can contact Johan Andersson, Vice President Investor Relations, at +46 702 100 451 or via email at ir@husqvarnagroup.com.

Frequently Asked Questions

What are the primary challenges Husqvarna Group is currently facing?

Husqvarna Group faces reduced consumer spending and inventory adjustments as the gardening season ends.

How does Husqvarna Group plan to address these challenges?

The Group is accelerating cost-saving measures and focusing on growth in specified markets like robotic mowers and battery products.

What is the expected impact on Husqvarna's third-quarter financial performance?

Organic sales are expected to decline by about 5%, with near break-even operating income due to lower capacity utilization.

Who can be contacted for more information regarding Husqvarna Group?

Henrik Sjöström for media inquiries and Johan Andersson for investor-related questions.

When will Husqvarna Group release its third-quarter report?

The report is scheduled for publication in late October 2024.

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