STOCKHOLM (Reuters) – Electrolux said on Friday it expected consumer sentiment to remain weak at the start of 2024 before stabilizing later in the year, as the group reported quarterly losses in line with an analysis preliminary.
Europe’s largest appliance maker warned this month that its fourth-quarter loss widened to around 3.2 billion Swedish crowns ($310.33 million), compared with a loss of two billion of Swedish krona in the previous year, due to high costs, increased price competition and weak demand in North America.
The Swedish group therefore expects demand for basic household appliances to be relatively sluggish in 2024 in all regions compared to that of 2023.
“Looking ahead to the start of 2024, weak consumer sentiment is expected to continue, with consumers turning to lower prices and postponing purchases in discretionary categories,” said Jonas Samuelsson, chief executive of the group.
The stock, which opened with a gain of 4%, then fell back, losing more than 6% at 0907 GMT.
“However, as inflationary pressure eases and interest rates are expected to fall, we expect demand in major markets to stabilize over the course of the year,” he said.
Electrolux struggles to compete with low-end rivals such as China’s Midea, as well as market leader Whirlpool.
The sector is also facing weak consumption. Whirlpool on Monday reported annual sales and profits that fell short of analyst estimates.
(Report by Marie Mannes; by Diana Mandiá)
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