Last quarter, we said:
We believe recent share price momentum for Harvia is sustained by the fact that it’s one of very few consumer companies that proves to be highly resilient to today’s uncertainty, driven by its own strategic growth initiatives and untapped potential.
That view hasn’t changed; it’s just being clouded by the short-term volatility and last year’s delivery timing.
One of the clear under-appreciated growth drivers that could/will take some time to materialize is that Harvia’s weaker and low-margin competitors will start to feel the pinch because of these US import duties. Today, that positive optionality simply isn’t priced in nor mentioned by analysts and/or investors.
Given that US consumer confidence has rebounded off the April and mid-May troughs, there’s a lot of potential for Harvia to accelerate its market share gains over the next quarters and years. It’s not a matter of whether it will happen, it’s just a matter of time.
Hence, we asked the management team the following:
Many of your competitors have much lower profitability, meaning that if they want to pass tariffs on to the consumer, they must raise their prices by much more than Harvia to sustain their profitability. Could you elaborate on how the competitive pricing has evolved over the quarter?