Duell (DUELL) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw slowed sales growth due to weak demand in the Nordics, unfavorable weather, and distribution changes in France, while Central Europe and the bicycle category showed resilience and growth.

• Challenging market conditions and low consumer confidence, especially in brick-and-mortar retail in the Nordics, negatively impacted profitability.

• Central Europe now represents over half of Q3 sales, aligning with strategic goals, and house brand Halvarssons performed well in the Nordics and UK.

• All net sales growth for the nine months was organic, with a focus on improving profitability and organic growth.

Financial highlights

• Q3 2025 net sales were €38.2 million, up 0.7% year-over-year; nine-month net sales reached €95.7 million, up 2.9%.

• Adjusted EBITA for Q3 was €2.1 million (5.4% margin), down from €3.2 million; nine-month adjusted EBITA was €3.9 million (4.1% margin), down from €4.8 million.

• Gross margin for Q3 was 21.7% (down from 24.9%); nine-month gross margin was 23.2% (down from 24.7%).

• Net debt reduced to €21.6 million from €27.1 million; leverage ratio improved to 3.4 from 4.5.

• Cash flow from operating activities improved to -€1.3 million from -€8.3 million year-over-year; cash and cash equivalents at period end were €5.9 million.

Outlook and guidance

• Guidance for FY2025 was lowered: organic net sales in comparable currencies expected to be flat or lower, and adjusted EBITA below last year's level.

• Previous guidance anticipated flat or higher sales and improved adjusted EBITA.

• Medium-term financial targets have been withdrawn for review and will be updated with the next fiscal year plan.

• Focus areas are profitability improvement and working capital management.