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Investing.com -- Shares of Husqvarna AB ser. A (ST:HUSQa) tumbled 7.5% after the company reported mixed financial results for the first quarter.
The Swedish outdoor power product company’s net sales remained flat year on year (YoY) at SEK 14,704 million, with a 1% organic decline. The disparate performance across its divisions contributed to the market’s reaction, with Husqvarna Forest and Garden reporting a 6% increase in sales YoY, while Gardena and Husqvarna Construction both saw sales decrease by 8% YoY.
The company’s adjusted earnings before interest and taxes (EBIT) also saw a significant decline, falling 19% YoY to SEK 1,561 million, with a corresponding drop in margin to 10.6% compared to 13.1% in the same quarter of the previous year.
Husqvarna Forest and Garden’s margin decreased from 14.4% to 13.0%, Gardena’s margin sharply fell from 15.3% to 11.1%, and Husqvarna Construction’s margin declined from 10.1% to 7.3%.
Furthermore, the company announced a significant leadership change, with CEO Pavel Hajman stepping down. The search for a new CEO is underway, with an appointment expected by late 2025.
In response to the challenging financial landscape, Husqvarna emphasized its commitment to cost control and operational improvements. The company is undertaking price increases and a supply chain review to counteract the current economic headwinds.