Thule Group's second-quarter net sales fell 8.6 percent year-on-year, as the company's sales of bicycle-related products in the Americas declined. Net sales for the quarter ended June amounted to SEK3.029 billion ($296 million), compared to SEK3.314 billion in the same period last year. After exchange rate fluctuations, sales declined by 15.1 percent. In the quarter, after adjusting for currency exchange rates, sales in its Americas region were down 18 percent year-on-year.
Magnus Wieland, CEO and President, says: Just as in Europe, our retailers are increasingly cautious in our key markets in the US and Canada. However, we noted a continued positive trend in the smaller Latin American markets during the quarter.
Net profit declined by 14 percent year-on-year, from SEK 539 million to SEK 626 million. Earnings per share amounted to SEK 5.14, compared with SEK 5.99 in the same period last year.
Sales performance at the beginning of the quarter was weak, says Weyland. The main reason for this was that, as in the previous three quarters, sales of bicycle-related products in the retailer channel declined, and retailers continued to reduce their inventory levels. At the same time last year, the same retailers were in the process of aggressively increasing their inventories.
Weiland noted that the phasing out of some older, low-margin packaging, bags and luggage had a negative impact on sales in the U.S. region. Going forward, the primary focus will be on duffel bags, suitcases and backpacks, he said.
Faced with today's bicycle industry market, Tianjin Panda Group also made timely adjustments. After integrating resources, we have set our factories in Tianjin and Xingtai, and we continue to keep our Alibaba international store for foreign markets and open Pinduoduo store for domestic markets. We will continue to plow in the field of bicycles, refine the production technology, to provide more bicycle dealers with quality products and services.
