RugVista Group (RUG) Q1 2026 earnings summary

Executive summary

• Achieved double-digit organic growth in Q1 2026, with net revenue of SEK 212.0 million, up 7.6% year-over-year and 12.5% organically.

• Orders increased 6.5% to 102.9 thousand, and new customers grew 8.2% to 75.0 thousand compared to last year.

• Strong performance in customer KPIs, with all-time highs in top line and customer metrics despite a challenging global environment.

• Outdoor product segment saw accelerated sales and contributed to growth.

• Average order value was SEK 2,874, up 0.4% (5.3% in local currency), despite negative currency impact.

Financial highlights

• Gross margin reached 64.9%, up from 64.0% year-over-year, despite higher freight costs.

• EBIT was SEK 23.9 million (11.3% margin), down from SEK 27.2 million (13.8%) last year, impacted by higher marketing spend and FX effects.

• Cash and cash equivalents at period end: SEK 235.0 million, up SEK 13 million year-over-year after dividend payments and investments.

• Marketing expenses rose to 32.3% of revenue from 29.0% last year, mainly due to increased performance marketing.

• Inventory at 16.8% of last twelve months' net revenue, considered well-balanced.

Outlook and guidance

• Marketing spend expected to trend slightly downward over time, with Q1 being an outlier; Q2 marketing spend expected to be lower.

• Targeting a long-term EBIT margin of 15%, with gradual improvements in marketing efficiency and conversion.

• Gross margin may face headwinds from rising freight and fuel costs, but price adjustments can be implemented quickly.

• Management remains focused on balancing growth, profitability, and returns, with ongoing investments in marketing and digital capabilities.

• The company is preparing for a rapidly evolving digital landscape, particularly in AI-driven search and e-commerce.