Husqvarna Group said it will increase its focus on its future premium product and service offerings under the core brands of Husqvarna and Gardena, and gradually exit from low price point product segments and brands, particularly gas-powered walk-behind lawnmowers and garden tractors. The Consumer Brands division will be dissolved into the Husqvarna and Gardena divisions.

The extent of the exits and associated adjustments to the manufacturing footprint and brand portfolio are being reviewed. The changes will be realized in two steps, as customer commitments for the 2019 season will be honored. The second step for 2020 is being reviewed. The net sales impact for 2019 is close to SEK 2 billion, but will have a favorable impact on the Group’s operating margin.

“We will focus our remaining consumer forest and garden operations in North America to areas where we have proven to bring customer value, such as handheld products, premium garden tractors, zero-turn lawnmowers and particularly robotic lawnmowers,” said Kai Wärn, president and CEO of Husqvarna Group. “The reorganization will facilitate reallocation of resources towards these offerings that have greatest potential for growth and profitability. Exiting non-core segments and brands is a decisive step to reduce complexity in the Group which will enable us to put even stronger focus on our high margin business in Husqvarna and Gardena. As a consequence, we will dissolve our Consumer Brands Division into the Husqvarna and Gardena divisions.”

These changes will start immediately and be fully implemented by year end. The Construction division is not affected by the changes.