Distribution channels and seasonality

Customers and distribution

Husqvarna Group sells forest, lawn, and garden products and services to around 25,000 dealers and leading retailers worldwide, as well as directly to end users. Of the total addressable market value, dealers represent around 40 percent. They primarily sell products in the high-performance segments to professional users and pro-grade experts (demanding consumers) and offer product services and support. Retailers, who represent slightly less than half of the market value, are selling products in the low to medium price ranges. Online channels, which in addition to dedicated online resellers are also used by dealers and retailers, are growing in significance with sales corresponding to an estimated 15 percent of the total market value. Light construction and stone industry products and services are sold through specialized dealers, rental companies and directly to contractors as well as to natural stone processing industries.

Seasonality

Forest and garden products and services, which represent around 85 percent of our total sales, are highly seasonal due to end user buying patterns. The majority of sales occur during spring and summer, when most lawn care and gardening activities take place. Since our main markets are in the northern hemisphere, sales are highest toward the end of the first quarter and in the second quarter. The third quarter generally marks the end of the gardening season, given average weather patterns. Demand for forestry products, such as chainsaws, tends to be somewhat higher during the second half of the year. For light 
construction, demand is more evenly distributed throughout the year, with slightly lower demand during the winter months.