Clas Ohlson (CLAS) Q1 24/25 earnings summary

Executive summary

• Net sales rose 20% year-over-year to 2,623 MSEK, with 10% organic growth and 10% from the Spares Group acquisition.

• Operating profit reached 203 MSEK, up from -16 MSEK last year, with an operating margin of 7.7%.

• EPS improved to SEK 2.30 from -0.42 SEK in the prior year.

• Online sales grew 12% (excluding Spares), with total online sales at 494 MSEK and online share at 17–18.8% of total sales.

• August net sales increased 13% year-over-year, with 7% organic growth and broad-based momentum.

Financial highlights

• Gross margin declined to 37.5% from 38.2%, mainly due to currency effects and Spares Group's lower margin.

• Cash flow from operating activities was 413 MSEK, up from 328 MSEK; free cash flow at 247 MSEK, up from 184 MSEK.

• Net debt/EBITDA (excl. IFRS 16) at -0.4, maintaining a net cash position.

• EBIT margin at 7.7% in Q1, up from -0.7% last year.

• EPS improved to SEK 2.3 from -SEK 0.4 year-over-year.

Outlook and guidance

• Five new store openings planned for Q2, with a target of net ten new stores for the fiscal year and continued expansion into 2025.

• Targeting 5% annual organic growth and 7–9% operating margin, with no revision to margin target.

• CapEx guidance maintained at SEK 200 million.

• Continued focus on assortment renewal, cost control, and digital growth.

• E-commerce expected to outpace total sales growth in coming years.