The third quarter was a good one for Thule Group, the Swedish company best known for its roof boxes and bike racks. It saw its net income soar by 148.6 percent from the year-ago quarter to 449 million Swedish kronor (€43.3m-$51.3m), while revenues jumped by 44.9 percent to SEK 2,043 million (€197.1m-$233.3m), or by 52.4 percent in constant currencies.
The gross margin expanded by 4.4 percentage points to 42.9 percent, and the underlying Ebit margin climbed by 8.2 percentage points of 24.5 percent for the quarter. It ended the period with a strong cashflow at SEK 764 million (€73.7m-$87.3m).
The company achieved these better-than-expected results by recovering, during the summer months, the lost spring season caused by lockdowns, while riding the strong global bike trend that started in June.
In the Europe & Rest of World region, spring and summer were short, concentrated seasons. During the quarter, sales there rose by 59 percent in constant currencies, with a positive trend in all European markets. Bike racks, bike trailers and child bike seats gained strong traction. Accessories for RVs also performed well, since many consumers chose this type of vacation after lockdowns. Stroller sales also grew during the quarter. The bag category, however, trended negatively due to reduced travel and lower sales of Back to Campus bags, as a result of school closures.
In the Americas region, bike products, Tepui rooftop tents and strollers performed best, with sales improving by 36 percent in constant currencies. Sales in Latin America were weak during the quarter due to the escalating pandemic situation in these markets.
Looking ahead, Thule said that short-term uncertainty remains regarding the scope of new market lockdowns in a number of countries. It believes that the strong trend will continue in the bike and RV sectors.