Kid (KID) Q3 2025 earnings summary

Executive summary

• Group revenues grew 1.7% year-over-year to MNOK 902.0, driven by strong online sales but limited by product availability due to the transition to a new central warehouse in Sweden, which caused temporary cost inefficiencies and lower inventory levels.

• Logistical bottlenecks led to limited product availability in stores, especially for non-seasonal and autumn products, but online sales grew as customers shifted channels.

• Investments in logistics, store expansion, and system modernization are ongoing to support scalability, efficiency, and customer experience.

• One new store opened and one closed in Kid Interior; three store projects completed in the quarter.

• Dividend of NOK 2.50 per share declared, payable in November 2025.

Financial highlights

• Group revenues increased by NOK 15.1 million (1.7%) year-over-year to MNOK 902.0, despite an estimated revenue shortfall of MNOK 30–40 due to warehouse transition.

• Online revenues rose 26.3% to NOK 129.5 million, with online share reaching 14.4% (19.8% including click-and-collect).

• Gross margin was 61.8%, down 0.3 percentage points year-over-year, mainly due to increased campaign activity.

• Reported operating expenses increased by 12%, driven by non-recurring items from strategic investments, warehouse transition, and currency effects.

• EBITDA for the quarter was MNOK 204.7 (down from MNOK 236.4); EPS was NOK 0.98, down from NOK 1.73 year-over-year.

Outlook and guidance

• Efficiency and capacity at the new warehouse are improving weekly, with expectations for further stabilization, automation, and cost savings.

• Product availability is expected to be much improved in Q4, with management expressing comfort about inventory coverage.

• Non-recurring costs from the warehouse transition are expected to decrease going into Q2 2026.

• Digital expansion into Germany and the EU postponed to 2026 to prioritize core operations and warehouse stabilization.

• The group remains confident in its long-term assortment strategy and plans further category expansion in garden, outdoor furniture, and lighting.