April 23 (Reuters) - Sweden's Husqvarna, which makes garden equipment and tools, reported bigger-than-expected first-quarter operating earnings on Thursday, boosted by higher volumes, a positive
Sweden's Husqvarna tops forecasts as cost cuts offset tariff hit; shares jump
By Jesus Calero and Alexander Gudbrandsen
Husqvarna's Strong Quarterly Performance and Strategic Initiatives
Quarterly Earnings and Market Reaction
April 23 (Reuters) - Sweden's garden equipment maker Husqvarna beat quarterly operating earnings estimates on Thursday, as higher sales and declining costs offset the impact of elevated tariffs.
The company's shares rose 11% in early trading and were on track for their best day in more than three years.
Main Sell-In Period and Product Launches
The first quarter is Husqvarna's main sell-in period, when products are shipped to retailers before spring.
CEO Glen Instone said in a statement that while geopolitical developments increased uncertainty, "we had good sell-in to our channel partners, and our new product launches supported a positive start to the year."
Product Demand and Analyst Insights
Jefferies' analysts said the company's performance was driven by robust demand for robotic lawn mowers across consumer and professional segments and for watering products in Europe.
Cost-Cutting Measures and Supply Chain Adjustments
Investors are now watching whether new robotic and battery-powered products, together with a cost-cutting plan, can revive growth after a difficult 2025.
Husqvarna, which relies on imported products for about two-thirds of its U.S. sales, has been reworking its supply chain to limit exposure to higher U.S. tariffs, shifting some production from China to Europe and rerouting shipments. The firm has also reduced its workforce by more than 1,700 in recent years.
Cost-Savings Plan Progress
The company's management said the cost-savings plan was running ahead of schedule, delivering about 245 million crowns ($26.57 million) in quarterly savings.
Financial Results and Analyst Expectations
Husqvarna's earnings before interest and tax stood at 1.71 billion Swedish crowns in the quarter ended March, beating analysts' average forecast of 1.42 billion crowns, according to data compiled by LSEG.
($1 = 9.2222 Swedish crowns)
(Reporting by Jesus Calero and Alexander Klyve Gudbrandsen; Editing by Mrigank Dhaniwala)
