New Wave Group (NEWA) Q1 2026 earnings summary

Executive summary

• Net sales grew 6.6% year-over-year to SEK 2,328 million, with 13.2% growth in local currencies, driven by acquisitions and organic growth, despite weak and uncertain global market conditions.

• Gross margin reached a record 50.0%, up from 49.8% year-over-year, attributed to lower trading volumes and strong brand performance.

• Operating profit was SEK 200 million, down from SEK 212 million last year, impacted by temporary costs for new business system implementation and acquisitions.

• Net profit for the quarter was SEK 129 million, with EPS at SEK 0.97, both lower than the prior year.

• Integration of Cotton Classics and launch of three new brands contributed positively.

Financial highlights

• Net sales increased 6.6% to SEK 2,328 million, with gross profit at SEK 1,163 million and a margin of 50.0%.

• Operating margin was 8.6%, compared to 9.7% last year.

• Earnings per share were SEK 0.97, down from SEK 1.09.

• Cash flow from operations before working capital changes was SEK 208 million, up from SEK 183 million.

• Equity ratio stood at 55.5%, up from 53.0% at year-end.

Outlook and guidance

• Management remains confident in achieving higher organic growth and improved profitability, with continued investments in IT, warehousing, and automation to support future growth.

• Long-term targets include 10–20% annual sales growth (5–10% organic) and an operating margin of 20%.

• Cash flow may temporarily decrease as inventory builds up with market improvement.