Thule Group (THULE) Pre-close call summary

Executive summary

• Achieved 4% organic growth and improved profitability in Q1 2026, driven by champion product categories and strong performance in active with kids and dogs, with North America showing positive momentum despite challenging market conditions.

• Continued execution of strategic priorities for 2026, with recognition for outstanding product design and expansion in premium dog harnesses through the acquisition of Curli.

Trading performance and revenue trends

• Net sales reached SEK 10.3 billion for the last twelve months ending Q1 2026, with quarterly net sales and operating income showing steady growth.

• Q2 is the largest seasonal quarter, driven by bike-related products and high seasonality, with organic growth expected despite a tougher comparison to Q2 2025.

• D2C channel continues to grow and strengthen, becoming a key platform for new product launches, with further expansion planned in Australia.

• Quad Lock maintains double-digit growth, contributing positively to group performance.

• Growth in North America continues despite cautious consumer and retailer sentiment.

Profitability and margins

• Adjusted EBIT for the last twelve months was SEK 1.7 billion, with an adjusted EBIT margin of 16.4%.

• Gross margin has improved over the past 24 months, with focus on maintaining current levels amid cost pressures.

• SG&A costs significantly reduced, mainly due to lower development spend and efficiency measures.

• FX headwinds persist but are less severe in Q2, with a negative impact on reported growth and EBIT.

• Price increases planned for Q3 to offset rising material and freight costs, aiming to defend gross margin.