Shares in Thule Group, the Swedish manufacturer of roof racks, bike carriers and outdoor equipment, dropped by more than 8% in Stockholm trading today after the company reported second-quarter earnings that fell short of market expectations. The stock was trading around SEK 310 by mid-afternoon, down from Friday's close of SEK 338.
The company posted operating profit of SEK 645 million for the April-to-June period, below the consensus forecast of SEK 690 million. Revenue came in at SEK 3.1 billion, also slightly under analyst estimates. Thule blamed the miss on weaker-than-anticipated demand in both Europe and North America, with retailers reducing inventory levels amid ongoing consumer caution.
Thule's CEO said in a statement that the outdoor recreation market had become "more challenging" in recent months, with customers delaying big-ticket purchases such as bike carriers and roof boxes. The company did not provide a specific timeline for a recovery but noted that it expects the headwinds to persist for the remainder of the year.
The sell-off in Thule weighed on the broader European consumer goods sector. In London, the FTSE 100 slipped 0.3% to 8,214 points, while the FTSE 250 fell 0.5% to 20,876. Retailers including Halfords and JD Sports Fashion saw modest declines, reflecting concerns that UK consumers are also tightening their belts. The pound strengthened slightly against the Swedish krona, which offered some relief for UK-based investors holding the stock.
Analysts at Jefferies said the results highlighted the fragility of the outdoor equipment market after a post-pandemic boom. "Thule's numbers suggest that the normalisation in consumer spending patterns is taking longer than many had hoped," they wrote in a note. "We see limited catalysts for a near-term rebound."
For UK investors and pension holders, the weakness in Thule underscores the risks of exposure to discretionary consumer stocks, particularly those reliant on non-essential outdoor gear. While Thule is not listed in London, it is held by several European equity funds popular with UK savers. The broader message from today's move is that consumer confidence remains fragile on both sides of the Atlantic, which could weigh on other retail names in the months ahead.