Electrolux warns of weak consumer sentiment in early 2024
Investing.com -- Shares in Electrolux (ST:ELUXb) were choppy on Friday after the Swedish appliance maker flagged that it expects consumer sentiment to remain weak early this year.
In a statement released in its latest earnings report, Chief Executive Jonas Samuelson warned that the beginning of 2024 will be marked by shoppers "shifting to lower price points and postponing purchases in discretionary categories." However, he predicted that demand in its major markets will stabilize later in the year thanks to an expected cooling in inflationary pressures and a decline in interest rates.
"Demand for core appliances in 2024 full-year is therefore expected to be relatively neutral for all regions compared to 2023," Samuelson said.
The comments come after Stockholm-based Electrolux warned earlier this month that weak Black Friday demand and elevated cost levels at its North American operations would lead to a fourth-quarter loss of around 3.2 billion Swedish crowns. The world's second-largest appliance maker had reported a loss of 2 billion Swedish crowns in the year-ago period.
Market leader Whirlpool (NYSE:WHR) has also guided for full-year sales and profit that were below analysts' estimates, due in large part to intensifying competition from lower-priced rivals like China's Midea.
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Electrolux warns of weak consumer sentiment in early 2024
