Clas Ohlson (CLAS) Q2 24/25 earnings summary

Executive summary

• Q2 sales reached 2,801 MSEK, up 14% year-over-year, with 8% organic growth and 9% from the Spares Group acquisition.

• Operating profit was 307 MSEK, with an 11% operating margin and EPS rising to 3.63 SEK from 2.74 SEK.

• Online sales accounted for 19% of total sales in Q2, with Spares Group contributing 211 MSEK.

• November sales grew 14% to 1,361 MSEK, with 13% organic growth and strong performance across all regions.

• Store network expanded by 14 stores year-over-year as of November, with six new stores opened in Q2.

Financial highlights

• Gross margin declined to 39.8% from 41.3%, mainly due to currency effects and the lower-margin Spares Group.

• EPS for Q2 was 3.63 SEK, up from 2.74 SEK year-over-year.

• Cash flow from operating activities for H1 was 530 MSEK; free cash flow for H1 was 176 MSEK.

• Net debt/EBITDA (excl. IFRS 16) at -0.2, maintaining a net cash position.

• Share of selling expenses decreased to 27.0% from 28.1% year-over-year.

Outlook and guidance

• Store network expansion is on track, targeting approximately 10 new stores in 24/25.

• Freight cost headwinds expected to persist through Q3 and Q4, with relief anticipated thereafter.

• Continued focus on profitable online growth, cost control, and product range renewal.

• Christmas shopping season started strong, with expectations to surpass last year's record sales.