Lyko (LYKO-A) Q1 2025 earnings summary

Executive summary

• Net sales reached SEK 918.4 million in Q1 2025, up 11.5% year-over-year, with strong campaign-driven momentum and renewed growth in both Nordics and Europe.

• EBIT increased by 75.3% to SEK 27.7 million, marking the most profitable Q1 to date despite a one-off cost of SEK 0.9 million.

• Profit for the period was SEK 12.0 million, a turnaround from a loss of SEK -9.9 million in Q1 2024.

• Continued investment in brand building, community engagement, and operational efficiency, especially targeting Gen Z, has strengthened market position and customer loyalty.

• The logistics automation project in Vansbro is on track, set to go live in July/Q3 2025, expected to increase capacity by 150%.

Financial highlights

• Net sales: SEK 918.4 million, up 11.5% year-over-year, with rolling 12-month sales near SEK 3.7 billion.

• Gross margin: 43.0% (down from 43.5% last year) due to broader campaigns and channel mix.

• EBIT: SEK 27.7 million (up from SEK 15.8 million), EBIT margin improved to 3.0% (1.9% last year).

• Inventory management improved, with stock-to-sales ratio at 14.2% vs. 16.4% last year.

• Cash flow from operating activities: SEK 95.1 million (up from -30.7 million last year).

Outlook and guidance

• Logistics automation in Vansbro will remove capacity constraints by Q3/Q4 2025, supporting further top-line growth.

• Continued focus on expanding assortment, launching new brands, and operational excellence as capacity increases post-summer.

• Third store in Finland to open in spring 2025.