New CEO will focus on premium products
YSN Staff
In his first earnings report since assuming the corner office on Jan. 1, Yannick Fierling, Electrolux’s newly installed president and CEO, offered a mixed outlook for the industry but expressed confidence in his company’s execution, brand recognition and product line following a return to U.S. profitability last quarter. Here are excerpts from his commentary.
First Impressions
“After having spent three months getting to know Electrolux Group and its stakeholders, I assumed the position as CEO on Jan. 1, 2025.
“Key takeaways from my initial time with Electrolux Group are the strength of our product offering and the clear identity of our Electrolux, AEG and Frigidaire brands. We really know our consumer, evidenced by the high online consumer star ratings for our products. It is essential to truly nurture the local strengths and what differentiates us in the market, while further leveraging our global scale to drive innovation and mix — all in a cost-efficient manner.
“In addition to offering great products that help consumers make more sustainable choices at home, we need to move even further to experiences by expanding our customized solutions throughout the consumer journey.”
Q4 Recap
“In North America, good momentum from our new products and improved productivity contributed to an improvement in operating income. Promotional activity was high, but Black Friday promotions did not continue throughout December as they did the year before.
“Despite weak housing markets and with some quarterly volatility, the market increased slightly in 2024, supported by the aggressive pricing environment.”
2025 Outlook
“Looking at 2025, there is an uncertainty stemming from potential impact on demand for home appliances from possible new trade policies in North America. On the back of this we expect market demand for core appliances to be relatively neutral in all regions in 2025 compared to 2024.
“In North America the focus is to improve productivity and reduce cost further while continuing to support the strong product offering. We anticipate that a high degree of demand will continue to be driven by replacement purchases, which are more price sensitive. Negative price is anticipated to be offset by growth in our focus categories, such as premium laundry and kitchen products.
“Similar to 2024, investments in innovation and marketing are projected to increase in full-year 2025. The intent is to capitalize on [our] product and services leadership, supported by brand-building, to create value long term.
The Long Game
“Electrolux Group has a unique culture and legacy that is important to safeguard, while at the same time further increasing speed and agility. A key element of the Group’s culture that I aim to support and develop is entrepreneurship. By promoting ownership and accountability, we can empower the entire team, enhance operational efficiency and improve financial performance.
“We will continue to develop and strengthen Electrolux Group for the years to come. Our attractive offering and strong brands together with effectively executed cost reductions and a high-performing organizational set-up position us well for the future.”
