RVRC (RVRC) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 sales and profitability, with net sales up 12% to SEK 684 million and adjusted EBIT margin at 23.6%, driven by growth across all regions and new market entries in Australia, New Zealand, and South Africa.

• Maintained industry-leading margins and strong financial position, with net cash of SEK 270 million after dividend and share repurchases.

• Outperformed declining markets in Sweden and Germany, increasing market share and expanding internationally to serve customers in about 40 countries.

• Launched new alpine and winter collections, receiving strong customer feedback and high product ratings.

• Distributed SEK 132 million in dividends and repurchased SEK 59 million in shares during the quarter, with 3.3 million shares cancelled.

Financial highlights

• Net sales for Q2 reached SEK 684 million, up 12% year-over-year (11% in local currencies); gross profit was SEK 481 million, with a gross margin of 70.3%.

• Adjusted EBIT was SEK 162 million (23.6% margin), up from SEK 146 million (23.8% margin) last year; EBIT for Q2 was SEK 158 million (22.9% margin).

• Cash flow from operating activities was SEK 327 million; net cash position at quarter end was SEK 270 million.

• Inventory increased to SEK 592 million, up from SEK 416 million last year, mainly due to longer lead times and currency effects.

• Earnings per share before dilution for Q2 increased 11% to SEK 1.12.

Outlook and guidance

• Early Q3 sales show some growth compared to the same period last year, but market remains challenging; management sees continued strong growth potential and targets 20% annual growth and 20% adjusted EBIT margin through 2026/27.

• No plans to increase markdowns; focus remains on competitive pricing and quality.

• March expected to be the largest month in Q3.

• No formal forecast provided.