Lyko (LYKO-A) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 reached SEK 939.3 million, up 6.8% year-over-year, with strong growth in Norway and Finland driven by new store openings and major campaigns.

• EBIT increased by 89% to SEK 31.7 million, marking the second most profitable quarter to date, with EBIT margin improving to 3.4% from 1.9%.

• Profitability gains were supported by cost control, campaign effectiveness, and expansion in both online and physical retail.

• Community engagement and own brand launches, such as Scandinavian Soap Factory and D'or, contributed to brand momentum.

• Investments in automation and technology, including the Vansbro warehouse ramp-up, are ongoing to support future growth.

Financial highlights

• Gross margin improved to 43.5% from 43.1% year-over-year, despite significant campaign investments.

• Rolling 12-month net sales now exceed SEK 3.7 billion.

• One-off personnel costs of SEK 0.5 million impacted the quarter.

• Cost control remains strong, with lower OpEx as a percentage of sales compared to last year.

• Investments in the quarter totaled SEK 102.7 million, mainly for warehouse automation and IT development.

Outlook and guidance

• Double-digit growth achieved in June, with a strong start to July; outlook remains positive as consumer demand is expected to pick up.

• Automation ramp-up is on track to provide 150% more capacity by year-end, supporting peak periods like Black Week.

• Marketing spend anticipated to increase in the second half, but likely to remain below 2024 levels as a ratio to sales.

• Management expects continued momentum and strong positioning for the second half of the year.