Thule shares jump after beating Q3 expectations with strong sales and profit

Investing.com -- Shares of Thule Group (ST:THULE ) jumped on Wednesday following its stronger-than-expected third-quarter results. 

At 7:12 am (11:12 GMT), Thule Group was trading 12.2% higher at SEK 338.

Analysts at Jefferies noted that the outdoor and transportation equipment manufacturer outperformed market expectations across key metrics, driven by solid product demand and strategic improvements in operational efficiency.

Thule reported net sales of SEK 2.34 billion, reflecting a 1.4% year-over-year increase and 4.4% organic growth, slightly surpassing consensus forecasts. 

The growth was powered by positive sales momentum in product categories such as sports and cargo carriers, which saw a 5% increase, and juvenile and pet products, which surged 15%. 

However, these gains were partly offset by weaker performance in packs, bags, and luggage, which contracted by 4%.

The EBIT came in at SEK 413 million, a 15.2% year-over-year increase, translating to an EBIT margin of 17.6%, up from 15.5% in the same period last year. 

“This was driven by an improved gross margin due to product mix, increased volumes and lower material costs, slightly offset by higher costs for product launches,” said analysts at Jefferies. 

The company reduced inventory levels by SEK 712 million since the beginning of the year, far exceeding its original target of a SEK 200 million reduction. 

This efficient working capital management not only supported cash flow but also provided a buffer against potential future disruptions.

Sales in the European and Rest of World markets grew organically by 5.6%, contributing SEK 1.74 billion to the total revenue. Meanwhile, the Americas segment reported SEK 601 million in revenue, reflecting a slight organic growth of 1.1% despite a 3.3% year-over-year decline in nominal terms. 

“We view the report as a sign of strength in a difficult consumer environment,” said analysts at Jefferies. 

Source: Investing.com