Kid (KID) Q1 2025 earnings summary

Executive summary

• Group revenues reached an all-time high of NOK 733.7 million, up 5.3% year-over-year, driven by Hemtex, new category launches, and strong performance in duvets, pillows, and furniture.

• Gross margin declined by 0.9 percentage points to 60.6%, mainly due to higher freight costs and increased campaign activity.

• EBITDA decreased by NOK 9.2 million to NOK 115.3 million, impacted by margin pressure, growth investments, and extraordinary non-recurring costs.

• Cash flow from operations was negative, affected by working capital changes and planned inventory build-up.

• EPS was NOK -0.74, down from NOK -0.23 in the prior year.

Financial highlights

• Group revenues: NOK 733.7 million (+5.3% year-over-year); like-for-like growth was 2.9%.

• Online revenues increased by 6.6% to NOK 90.1 million, representing 12.3% of total sales.

• EBITDA for the quarter was NOK 115.3 million, with a margin of 15.7%.

• Net profit was negative at NOK -30.1 million, down from NOK -9.1 million year-over-year.

• Operating expenses increased by 8.3%, driven by wage increases, new stores, logistics, and HQ roles.

Outlook and guidance

• April revenues in constant currency increased by 7.6%, and year-to-date per April by 5.2%, including Easter timing effects.

• Digital pilot for Hemtex brand launch in Germany and other EU markets expected in H2 2025.

• New common warehouse in Sweden expected to be fully operational by mid-2025, with ramp-up and automation ongoing.

• Non-recurring costs related to warehouse transition estimated at NOK 30 million for 2025, with NOK 5 million booked in Q1.

• New CEO appointed effective 1 May 2025.