Shares in Swedish manufacturer of outdoor power products Husqvarna fell 13% in European trading Thursday after the company delivered a weak Q2 2024 print.
The company’s net income was SEK 1.273 billion, or SEK 2.22 per share, down from SEK 1.411 billion, or SEK 2.46 per share, in the same quarter last year.
Revenue for the quarter dropped to SEK 15.430 billion, a 9.1% year-over-year decrease and a 6% organic decline, coming in 7% below FactSet consensus.
Adjusted EBIT was SEK 1.906 billion, representing an 18% year-over-year decrease and 20% below consensus estimates. This translates to a margin of 12.4%, down from 13.6% a year ago.
“Growth in segments such as robotic mowers for the professional market, consumer battery-products, and parts & accessories was positive, while sales of watering products, petrol-powered wheeled products, and construction products declined,” analysts commented.
The company attributed its performance to a persistently challenging macroeconomic environment and cautious consumer spending. Moreover, unfavorable weather conditions in Central Europe and North America negatively impacted Gardena’s watering business.
Analysts said the decline in profitability was primarily due to lower volumes, reduced capacity utilization, and product mix effects, although these were partially mitigated by cost savings.
