New Wave Group (NEWA) Q2 2026 earnings summary

Executive summary

• Q2 saw strong growth in both sales and earnings, with positive market sentiment and recovery in several regions.

• Investments in logistics, IT, and production facilities, including Dallas and Toppoint, are ongoing and expected to drive future growth and efficiency.

• The group continues to focus on sustainable, profitable growth across its three operating segments.

• Integration of Cotton Classics is progressing well, contributing significantly to sales growth.

Financial highlights

• Net sales for Q2 increased by 13.5% to SEK 2,611 million, with local currency growth of 14.6% and organic growth of 2.2%.

• Gross profit margin improved to 50.0% (up from 48.0%), with a historical high above 27% excluding acquisitions.

• Operating profit for Q2 was SEK 295 million, with an operating margin of 11.3%.

• Profit for Q2 was SEK 202 million, EPS SEK 1.52; half-year profit was SEK 330 million, EPS SEK 2.49.

• Cash flow from operating activities for the half-year was SEK 305 million, supporting a robust balance sheet.

Outlook and guidance

• Management expects continued growth and margin improvement as investments in automation, logistics, and IT mature.

• Dallas fulfillment center expected to reach breakeven within 3-6 months after October launch, supporting US growth.

• Operating margin is expected to improve from the second half of next year as investment costs normalize.

• Focus remains on maintaining high gross margins and leveraging recent investments for future growth.