Seasonality and sensitivities

The demand for Fiskars Group’s products across categories can be influenced by both seasonal variations and weather conditions.

For Business Area Fiskars, the first half of the year is important for the gardening category. The demand for garden tools can be significantly influenced by weather conditions. Unfavorable weather, i.e., a cold and rainy spring, can negatively impact the sales of these products, while favorable conditions can boost their sales. In the winter months, a snowless winter can negatively impact sales of snow tools and vice versa. The back-to-school season during the second and third quarters of the year is also important for the scissors category in Business Area Fiskars.

For Business Area Vita, the second half, in particular the fourth quarter is the most important time of year due to the holiday season.

Any negative developments related to product availability, demand or increased costs in manufacturing or logistics during the important seasons can significantly affect the full-year net sales and profit. The seasonality of demand can differ from a typical year due to volatile market conditions.

Extreme weather conditions, for example, storms and wildfires, are expected to increase in the future due to climate change and may also have a local impact on business operations.

Fiskars Group balances the impact of seasonality and changing weather conditions by having an extensive and diverse product portfolio and broad geographical footprint. The company can maintain safety stocks as a buffer against possible supply chain disruptions. Additionally, the company relies on multiple source contracts to manage both price and availability risks.

The financial implications of property damage and business interruptions caused by natural hazards are mitigated by comprehensive insurance cover.

With a significant part of the business in the United States and in other countries outside the eurozone, Fiskars Group is exposed to fluctuations in foreign currency rates. A change in the exchange rate may have a material impact on the reported financial figures. The most significant transaction risks are related to the appreciation of DKK, THB and USD, and the depreciation of SEK, AUD and JPY. The most significant translation risks are related to the depreciation of USD. While a weakening U.S. dollar benefits the company in currency transactions due to its net-buy position, it has a negative impact through translation risk.

Currency risks related to commercial cash flows are first managed by offsetting cash flows denominated in the same foreign currency. Purchases of production inputs and the sales of products are primarily denominated in the local currencies of the Fiskars Group companies. The remaining net exports or imports in foreign currencies are hedged up to 15 months in advance using currency forwards and swaps.

Read more about financial risks in the Annual Report.