Pierce Group (PIERCE) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 sales with net revenue of SEK 523 million, up 15% year-over-year and 20% in local currency, marking the highest in company history.

• Adjusted EBIT rose to SEK 32 million (6.2% margin), up from SEK 17 million last year, despite SEK 8 million in transformation costs and SEK 2 million in trademark amortization.

• Growth was broad-based across all markets, customer segments, and product categories, with external brands outperforming and private brands impacted by delayed launches.

• Maintained high customer satisfaction, with Trustpilot and Net Promoter Scores showing positive trends and a growing customer base.

• Transformation of IT systems and expansion into new European markets underway to support future growth.

Financial highlights

• Q2 2025 net revenue: SEK 523 million (+15% YoY); gross profit: SEK 229 million; adjusted EBIT: SEK 32 million (6.2% margin); cash position: SEK 188 million at quarter end.

• Gross margin was 43.7%, slightly down from 44.1% last year, mainly due to obsolescence and strong growth in lower-margin external brands.

• Adjusted EBITDA: SEK 46 million (Q2 2024: SEK 35 million); margin improved to 8.7%.

• Inventory increased to SEK 522 million, reflecting planned stock build-up to support growth.

• Net working capital at period end: SEK 210 million (12.1% of LTM revenue).

Outlook and guidance

• Full rollout of new SaaS-based IT systems and tech stack to be completed by Q1 2026, with significant reduction in transformation costs and improved operating leverage expected from Q2 2026.

• Plans to launch localized websites in 12 additional European markets, targeting further growth and geographic expansion.

• Inventory levels to remain elevated to underpin growth, with ongoing focus on optimizing stock and accelerating sales of slow-moving inventory.

• Mid- to long-term targets: organic growth above the European online market, adjusted EBIT margin of 5–8%, and net debt/EBITDA below 2.0x.

• Confident in strategic direction and market share gains, with a positive outlook for autumn and winter.