Clas Ohlson (CLAS) Q1 25/26 earnings summary

Executive summary

• Q1 total sales reached 2,814 MSEK, representing 10% organic growth year-over-year, with operating profit up 37% to 278 MSEK and an operating margin of 9.9%.

• EPS increased to 3.27 SEK from 2.30 SEK in the prior year.

• Cash flow from operating activities was robust at 468 MSEK, and free cash flow improved to 306 MSEK.

• Online sales grew 10% to 542 MSEK, with e-commerce up 28% for the core business and all B2C channels showing positive development.

• The business continues to execute its strategy, focusing on assortment renewal, online growth, and store network expansion.

Financial highlights

• Gross margin improved by 1.4 percentage points to 45.7%, mainly due to lower purchasing costs and positive currency effects.

• Operating margin for Q1 was 9.9%, up from 7.7% last year.

• Profit after financial items reached 265 MSEK, compared to 187 MSEK last year.

• Net debt/EBITDA (excl. IFRS 16) at -1.0x, indicating a net cash position.

• Equity/assets ratio improved to 37.2% from 32.3%.

Outlook and guidance

• August sales showed 7% organic growth, indicating a solid start to Q2.

• Management expects continued tailwinds from favorable USD and transportation costs, though NOK remains a headwind.

• Continued focus on profitable growth in all product niches and sales channels, with ongoing cost control.

• Store expansion target of 10 net new stores for the year remains, with a focus on quality locations.

• Preparations underway for key autumn and Christmas sales periods, including store refurbishments and new openings.