Lyko (LYKO) investor relations material

Executive summary

• Q3 net sales rose 23.8% YoY to SEK 1,024m; EBIT increased to SEK 58m from SEK 2m, with a 5.6% margin. YTD sales growth was 8.7%.

• Efficiency gains, campaigns and new stores supported growth and profitability; investments in logistics, technology, stores and the brand platform are beginning to pay off.

• Q3 was the first quarter to exceed SEK 1bn in sales and the first Q3 to deliver higher sales than Q2.

Financial highlights

• Net sales increased 23.8% YoY to SEK 1,024m; growth was 21.4% in local currencies, with FX effects, especially in NOK, lifting reported growth.

• Gross margin was 41.5%, down from 42.2%; FX, stock scrapping and lower freight revenues weighed on margin, while product margins were on par YoY.

• Q3 earnings were SEK 35m versus a loss of SEK 19m; EPS was SEK 2.28 versus a loss per share of SEK 1.21.

• Jan–Sep net sales rose 8.7% to SEK 2,920m; EBIT was SEK 116m versus SEK 62m, and earnings were SEK 44m versus SEK 7m.

• Q3 one-off operating expense items were SEK 0m versus SEK -12m; Jan–Sep items were SEK -21m versus SEK -13m.

Outlook and guidance

• Cost-saving program remains on plan; its largest margin impact is expected in Q4, with SEK 100m savings targeted for Feb–Jan and final quantification after the period.

• Around eight store projects are planned for 2027, including the compact city-centre format; long-term ambition is 100 new stores.

• Planned 2026 investment spend is SEK 70m; Q3 CapEx was SEK 9m.

• Continued sales growth and efficiency improvements across logistics, technology and commercial operations are expected to support profitability; management plans continued marketing investment.

• Christmas calendars had started well, with Black Month and Christmas approaching as the busiest trading weeks; management expects tougher Q4 promotional activity.