Industry News | Thule Group recently released the third quarter financial report of 2024: New products drive growth and the work to build market positions

Here is a look at Thule Group's current financial performance and the factors driving the results. 

Thule Group Q3 2024 Performance 

• Thule Group had a good third quarter in 2024, with increased sales, good profitability, and record-high cash flow. The challenging market, with cautious consumers and retailers, particularly in North America, continued to impact the business. 

  
  

Sales Growth Drivers 

New Products: Thule Group launched more products than ever before in 2024. 

• The company noted good growth from upgraded bestsellers, such as the Thule Urban Glide jogging stroller, Thule Chasm duffel bag, and Thule Chariot multisport and bike trailers. 

• The launch of two new bike carriers also contributed to growth in bike-related products. 

• Thule expanded into new categories including dog transportation with the launch of the Thule Allax dog crate in Q1 and the Thule Bexey bike trailer for dogs in Q3. 

Thule launched car seats for infants and small children in several European countries. 

Thule Bexey bike trailer for dogs

Direct-to-Consumer (DTC) Channel: Expanding sales through thule.com, with new launches in Finland and Portugal, led to immediate growth in the DTC channel. 

Region Europe & RoW: This region drove sales growth, increasing by 5.6% after adjusting for exchange rates and acquisitions. Sales growth was mainly driven by bike-related products, new products in Juvenile & Pet, and the DTC channel. 

Market Leadership: Thule Group's position as a global market leader, particularly in product categories like bike carriers, contributed to sales growth.  For instance, they launched an updated version of their best-selling Thule Easyfold bike carrier and a new niche product, the Thule Revert, which quickly sold out its first production volume. 

Thule Revert

Profitability and Financial Strength 

• Gross Margin: The gross margin increased to 42.9%, driven by product mix, increased volumes, and lower material costs. 

• EBIT Margin:  Reached 17.6%, the highest for the third quarter (excluding the pandemic years), due to the improved gross margin. 

• Cash Flow: Cash flow from operating activities reached a record high of almost SEK 1 billion in Q3, bolstered by strong sales and a reduction in inventory levels. This strong cash flow, combined with a strong balance sheet, enables continued investment for future growth. 

Challenges and Future Outlook 

• Challenging Market: Cautious consumers and retailers, especially in the more challenging North American market, continue to pose a challenge. 

• Investment in Growth:  Thule Group plans to increase investment in areas such as product development, new product categories, consumer visibility, and supply chain efficiency to drive future growth. They plan to launch additional new products within bike carriers in spring 2025. 

• Sustainability:  The company continues to focus on sustainability, introducing products with a higher share of recycled materials and completing the installation of air-source heat pumps at one of its largest factories. 

  
  

Thule Group is performing well despite a tough market.  The company's strong financial position, driven by successful new product launches, market leadership, and a focus on operational efficiency, allows it to navigate market challenges while continuing to invest in long-term growth initiatives.