Thule Group on Wednesday reported higher third-quarter profit and a record gross margin, navigating what it described as a tough market where its organic sales declined.
The Swedish maker of products like roof racks and strollers said net income rose to 314 million Swedish kronor from 300 million kronor a year earlier.
Net sales grew 7.9% to 2.53 billion kronor, an increase the company attributed to its acquisition of phone-mount maker Quad Lock.
This contribution offset a 4% drop in organic sales, which Thule said was due to cautious consumers and retailers in its key markets of Europe and North America.
"The market has not yet shown signs of recovery, with consumers and retailers remaining cautious in both Europe and North America," Chief Executive Mattias Ankarberg said in a statement.
The company's gross margin expanded to a record 47.5% from 42.9% in the prior year, which it credited to an improved product mix and supply chain efficiencies.
Thule said that while its early product launches this year were successful during the peak season, retailers were hesitant to replenish stock at the end of the season.
The company added that its performance in North America continues to improve following recent restructuring and product launches aimed at the region.
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Thule Group said Tuesday that new products helped it slow a sales decline in North America, its most challenging market, contributing to a nearly 10% rise in second-quarter revenue.