Husqvarna Warns of Dealer Destocking and Promotional Pressure

Husqvarna warned on December 9, 2024 that heavier promotions and dealer inventory reductions were weighing on its fourth-quarter performance. The trading update singled out North America for increased promotional pressure and also cited a less favorable product mix.

Retail partners and servicing dealers were reducing their stock holdings, the group said. That was feeding back into lower production volumes and weaker factory utilization. The update illustrates how inventory decisions in the distribution channel can affect a manufacturer even before the next gardening season begins.

Husqvarna forecast a roughly 5% decline in fourth-quarter organic sales and an operating loss of SEK 700 million to SEK 800 million, excluding items affecting comparability. These were estimates published before the end of the reporting period. The company scheduled its full fourth-quarter report for February 5, 2025.

Chief executive Pavel Hajman said the group was continuing previously announced cost-saving measures while preparing new products for the 2025 season. Husqvarna's business spans robotic mowers, other garden and forestry equipment, watering products and construction tools. The warning concerned the group result, with channel destocking, discounting and factory utilization all contributing to the pressure described by management.