But promotional pricing pressured profits
By Alan Wolf, YSN
Electrolux reported a 4.7% increase in North American sales, to 11.7 billion SEK, for the second quarter ended June 30, following a 13% decline in Q1.
The Swedish appliance giant attributed the gains to rising demand, the “relatively resilient” purchasing power of the U.S. consumer, and the overall 4.6-star rating that its current product line received from owners.
Earnings Hit
But pricing pressure, particularly in refrigeration — a key U.S. category for Electrolux and its Frigidaire brand — led to an operating loss of 369 million SEK. However, the loss narrowed significantly from the first quarter thanks to higher sales, a richer mix of premium products, increased marketing, cost reductions and improving productivity at the company’s new cooking appliance complex in Springfield, Tenn., the manufacturer said.
“Our ability to continue generating a positive mix and stabilize net price sequentially in this challenging market environment shows that our focus to strengthen our position in the mid- and premium categories continues to be effective,” President/CEO Jonas Samuelson said in a statement.
Looking Ahead
Samuelson added that the company anticipates the promotional intensity in North America to continue to stabilize sequentially throughout the year.
Going forward, Electrolux will continue to cut costs, further streamline its corporate structure and focus on the mid- to premium price tiers “as consumer demand … starts to recover,” the CEO said.
Samuelson is scheduled to leave the corner office on Jan. 1, 2025, after nine years as chief executive. No successor has been named.
