Lyko (LYKO-A) Q4 2025 earnings summary

Executive summary

• Net sales grew 16.6% in Q4 2025 to SEK 1,278 million and 11.3% for the year to SEK 3,963 million, with 350,000 new customers added and Norway surpassing SEK 1 billion in annual sales.

• Profitability was below expectations due to lower gross margins, high campaign pressure, and increased costs from automation and office closures.

• Brand awareness and market share reached record highs in Sweden and Norway.

• A SEK 100 million annual cost reduction program, affecting around 70 FTEs, is being implemented.

• Significant investments in automation, inventory, and marketing supported growth and operational efficiency.

Financial highlights

• Gross margin declined to 39.6% in Q4 from 45.2% year-over-year, mainly due to campaign pressure, assortment and channel mix, and lower supplier contributions.

• Q4 EBIT was SEK 16.3 million (down from SEK 76.5 million YoY); full-year EBIT was SEK 78 million with a 2.0% margin, impacted by SEK 19.9 million in one-off costs.

• Inventory at year-end was SEK 633.7 million, representing 16% of rolling 12-month net sales.

• Marketing spend rose to 10.6% of net sales in Q4.

• Q4 earnings per share were SEK -0.64; full-year EPS was SEK -0.20.

Outlook and guidance

• Focus is shifting toward profitability, with tighter cost control, selective promotions, and no major new investments planned.

• SEK 100 million in annual cost savings expected from February, mainly from organizational changes and OpEx reductions.

• January 2026 saw normalization of average order value and gross margins, tracking in line with prior year.

• Roadmap for 2026 emphasizes disciplined growth and structural cost advantages.