Kid (KID) Q2 2025 earnings summary

Executive summary

• Group revenues reached an all-time high of MNOK 856.4 in Q2, up 7.3% year-over-year, driven by seasonal product sales, new store openings, and strong category development in bathroom and outdoor furniture.

• Gross margin was 62.3%, historically robust but down 0.9 percentage points from last year due to higher freight costs.

• EBITDA for Q2 was MNOK 189.1, down from MNOK 201.5, impacted by increased OPEX, warehouse transition, and currency effects.

• Net income was negatively affected by a MNOK 25.0 impairment on the Lier warehouse and a MNOK 8.8 currency hedge loss, resulting in EPS of NOK -0.07.

• Launched a new 57,000 sqm centralized warehouse in Sweden, increasing storage capacity by 40% and streamlining logistics for all markets.

Financial highlights

• Operating expenses rose 13.7% year-over-year, mainly due to warehouse transition, new stores, and currency effects.

• Non-recurring operating expenses of MNOK 9 in Q2, with MNOK 30 expected for the full year due to the warehouse transition.

• Cash and available credit facilities at quarter-end: MNOK 265.5; net interest-bearing debt (excl. IFRS 16): MNOK 964.7; gearing ratio: 1.65x.

• EBITDA margin was 22.0% (down from 25.2%); OPEX-to-sales (excl. IFRS 16) was 53.7% (up from 50.7%).

• Dividend of NOK 5 per share paid in May, totaling MNOK 203.2.

Outlook and guidance

• Focus remains on scaling and optimizing the new warehouse to boost efficiency ahead of peak season, with cost savings expected over time.

• Expect low store inventory in Q3, with normalization by quarter-end.

• Five store projects for Kid and three for Hemtex planned in H2, including two Extended stores, plus a digital pilot for Hemtex in Germany and EU in Q4-25.

• Non-recurring operating expenses related to the warehouse transition are expected throughout 2025, totaling approximately MNOK 30.