USWE Sports (USWE) Q1 26/27 earnings summary

Executive summary

• Net sales for Q1 2026/2027 decreased by 29% year-over-year to 29.3 MSEK, with organic growth at -18% after currency adjustment.

• EBITDA was -2.2 MSEK, down from 1.0 MSEK, and operational EBIT was -3.6 MSEK, reflecting a margin of -11.9%.

• The quarter was impacted by a strategic shift from distributor sales to direct sales to retailers, resulting in lower revenues but expected to strengthen long-term growth and margins.

• No significant events occurred during or after the quarter.

Financial highlights

• Gross profit was 17.9 MSEK, with a gross margin of 61.1%, boosted by a one-time 1.6 MSEK US customs refund.

• Adjusted for one-time effects, gross margin was 55.7% versus 54.3% last year.

• Cash flow from operations was -4.5 MSEK, compared to 9.4 MSEK last year.

• Cash and cash equivalents at quarter-end were 2.9 MSEK, down from 8.6 MSEK.

• Net result before tax was -4.0 MSEK, compared to -2.8 MSEK year-over-year.

Outlook and guidance

• The transition to a higher share of direct sales is expected to continue impacting revenues in the short term but is seen as a key investment for future growth and profitability.

• Focus remains on profitable sales, improved cash flow, and efficient capital use in coming quarters.