BasicNet (BAN) Q1 2026 earnings summary

Executive summary

• Aggregate sales rose 11.3% year-over-year to €299.1m, with consolidated revenues up 35.1% to €132.8m, driven by Woolrich and Sundek acquisitions.

• EBITDA reached €15.4m, up 21.1% year-over-year, with Woolrich and Sundek already EBITDA positive.

• Direct sales grew from €81m to €118.8m (+45%), with double-digit growth even excluding new acquisitions.

• Net financial position with banks increased to €102.3m, reflecting seasonal cash absorption and acquisition financing.

• Growth in consolidated revenues was driven by direct sales and European market consolidation, while royalties declined.

Financial highlights

• Direct sales reached €118.8m (+45% vs Q1 2025), while net royalties decreased to €13.8m (-14.4%).

• EBITDA improved from €12.7m to €15.4m, with like-for-like growth mainly from retail expansion and HR investments.

• Negative operating cash flow of €11.8m, mainly due to trade working capital and integration of new brands.

• CAPEX for the period was €7.1m, focused on retail expansion, IT, and headquarters renovation.

• NFP with banks rose from €74.4m at year-end to €102.3m in Q1 2026.

Outlook and guidance

• Q3 and Q4 expected to show results from ongoing profitability improvement actions, especially for Woolrich.

• Continued shift from third-party royalties to direct revenues as European market consolidation progresses.

• Right-sizing actions at Woolrich and Sundek expected to further impact margins in future quarters.

• Growth trajectory maintained despite geopolitical and macroeconomic uncertainty, focusing on sustainable medium to long-term development.

• Key drivers for long-term value creation include brand enhancement, distribution network expansion, and investments in communication and retail channels.