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Rusta (RUSTA) investor relations material
Rusta Q1 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Net sales grew 3.4% year-over-year to MSEK 3,174, with 6% growth excluding currency effects and 1.2% like-for-like growth excluding currency effects.
Gross margin was 42.6%, with EBITDA/EBITA margin at 8.8%, down from last year due to currency headwinds and a weak Finnish market.
Sweden and Norway showed strong growth and customer demand, while Finland underperformed due to cautious consumer behavior and macroeconomic headwinds.
Store network expanded to 227 stores, with a record pipeline of 47 new locations and guidance towards the upper end of 50–80 new stores over three years.
Major projects, including rapid store concept renewal and distribution center automation, are progressing on schedule.
Financial highlights
Net sales: MSEK 3,174 (+3.4% y/y), with 6.0% growth excluding currency effects and 1.2% like-for-like growth excluding currency effects.
Gross profit increased 0.6% year-over-year to MSEK 1,350; gross margin declined by 1.2 percentage points to 42.6% due to negative currency effects.
EBITDA/EBITA margin was 8.8%, down from last year, mainly due to currency headwinds and absence of prior year IT attack compensation.
Net profit for the quarter was MSEK 174, down from 231, and EPS before dilution was SEK 1.1 (1.5).
Cash flow from operating activities decreased to MSEK 472, mainly due to earlier deliveries and payments.
Outlook and guidance
FX headwinds peaked in Q1; positive currency effects expected in the second half of the financial year.
Gross margin expected to improve in Q2 and beyond as positive FX and sourcing effects materialize.
Store expansion to continue, with guidance towards the upper end of 50–80 new stores over three years and 17–19 new stores expected this year.
LFL sales expected to rise 1.5–2.0% annually from store concept upgrades.
Financial targets: 8% annual organic net sales growth, LFL growth above 3%, EBITA margin around 8%.
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Frequently asked questions
More for the Money
Rusta is a Swedish retail company that sells interior, leisure, beauty, and DIY products. The company’s business model is built on effective logistics, buying its stock in bulk without utilizing middlemen, and offering a broad selection of goods at its retail locations. The company operates over 200 stores, most of which are located in Sweden. Besides operating in its home country, it also has retail locations in Norway, Germany, and Finland, and sells its goods online. The company is headquartered in Upplands Väsby, Sweden, and its shares are listed on OMX Nasdaq Stockholm.
Expansion
The first Rusta store was opened in 1986 by Anders Forsgren and Bengt-Olov Forssell. The two friends had the idea to open a store where regular people could buy products at the lowest possible price. The plan was to establish a presence on the domestic market by importing and selling the products themselves, to cut costs for the end customers. In 1998, Rusta opened a distribution center in China in order to have complete control over its purchasing and distribution channels. Growth in Sweden continued to rise steadily into the new millennium, and between 2014 and 2018 the company expanded into Norway, Germany, and Finland.
The Products
Rusta’s offerings include a variety of home decor items, encompassing stylish furniture, contemporary lighting options, and a range of textiles to suit different tastes. In the DIY segment, Rusta provides a selection of tools and hardware, catering to home improvement enthusiasts. The store's garden section features gardening tools, plants, and outdoor furniture, appealing to gardening hobbyists. For sports and leisure activities, Rusta offers equipment and accessories, alongside a collection of toys for children. Additionally, the store includes personal care products, beauty items, electronics, and general household goods. Some of the most comparable international peers to Rusta are Target, Kohl’s Corporation, and similar companies.
Moving Into E-Commerce
While Rusta is most known for its physical retail locations, the company also has an online store. The company’s website allows customers to shop for the same items that can be found in its physical locations with the option of having the products delivered straight to the customers' homes. The website also features product information, promotions, and store locators.
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