Husqvarna reports sales drop – Q2 2024

Husqvarna Group reported its second quarter 2024 financials recently, showing a 6% decline in organic sales. The company cited weak macroeconomic conditions, cautious consumer behavior, and adverse weather in Central Europe and North America.

Even with this sales decline, the company said it has seen gains in its professional robotic lawn mower segment, and with reduced debt and improved cash flow, the company’s financial position remains solid.

In its reporting, CEO Pavel Hajman stated, “Organic sales in the Husqvarna Forest & Garden Division decreased by 6% during the quarter. Growth was strong in robotic mowers for the professional market, driven by Husqvarna CEORA. In addition, the segments consumer battery-powered products and parts and accessories performed well. In robotic mowers for the residential market, growth was strong for the Husqvarna Automower NERA range, which was further expanded with two boundary wire-free models this season. The successful range now comprises five models, which together accounted for approximately one third of our residential robotic mower sales in the quarter. Sales of petrol-powered wheeled products remained at a low level, due to lower demand and the fact that we are proactively exiting parts of the segment in North America. Operating margin improved in the quarter, driven by our cost savings.

Hajman added that Husqvarna is “committed to our strategy and ongoing transformation where we focus on the high-growth areas of robotics, battery, smart watering and professional solutions.”

Note from the company’s earnings call:

• Robotics and battery as a share of Group sales is 20% on a 12-month rolling basis 
• Electrified motorized products has increased to 44% of Husqvarna’s total motorized range 
• Sales of robotic mowers for the residential market were lower though, during the quarter compared to the same quarter last year. 
• The company sees the shif to boundary-wire-free robotic mowers, and it will continue to introduce further models in the market. 
• Its flagship four-wheel drive model will be boundary wire-free for the next season.
• Husqvarna had lower sales in petrol-powered products, particularly in the wheeled in North America and the high ticket price items; the Group is proactively exiting parts of the segment in North America.
• Inventory reduction efforts are ongoing, with a continued focus on cash flow and working capital management.