Rusta (RUSTA) Q3 24/25 earnings summary

Executive summary

• Net sales grew 7.3% year-over-year in Q3, with like-for-like growth of 4.3% in local currencies and a gross margin of 43.5%; Sweden led with double-digit sales growth and higher ticket items, while Norway showed recovery and Germany improved location opportunities.

• Growth was volume-driven, supported by increased customer footfall and a 12.8% rise in club membership.

• Store pipeline reached a record 44, with 220 stores across four countries as of March 12, 2025, and guidance raised to 50–80 new openings over three years.

• Social media engagement and club membership growth, especially in Germany and among young males, boosted product sales.

Financial highlights

• Q3 gross profit increased 5.1% and EBITA/EBITDA rose 3.6% year-over-year, with a margin of 11.0%; YTD net sales grew 4.8% and EBITA up 7.4%.

• Accumulated EBITDA/EBITA margin was 9.4%; profit per share increased 9.9% year-to-date.

• Cash flow from operations was lower due to planned inventory build-up and higher inventory purchases ahead of summer.

• Currency headwinds and FX volatility impacted sales and margins.

Outlook and guidance

• Store expansion forecast raised to 50–80 new stores in three years, with 44 contracts approved and 6 new stores planned for Q4.

• Updated store concept rollout expected to boost like-for-like sales by 1.5–2% and be completed before Christmas 2025.

• February sales showed a step up from Q3, with growth across all markets and a strong start to Q4.

• Management targets 3% like-for-like growth this year and 8% EBITDA margin within 2–5 years.