Clas Ohlson (CLAS) Q1 25/26 earnings summary

Executive summary

• Q1 total sales reached 2,814 MSEK, with 10% organic growth and operating profit up 37% to 278 MSEK, resulting in a 9.9% operating margin.

• EPS increased to 3.27 SEK from 2.30 SEK in the prior year.

• Online sales grew 28% at clasohlson.com and 10% overall to 542 MSEK, with all B2C channels showing positive development.

• August sales continued strong with 7% organic growth.

• Free cash flow improved to 306 MSEK, and the store network expanded to 241 locations.

Financial highlights

• Gross margin increased to 45.7%, up 1.4 percentage points year-over-year, mainly due to lower sourcing costs and positive currency effects.

• Cash flow from operating activities was 468 MSEK, up from 413 MSEK.

• Net debt/EBITDA (excl. IFRS 16) at -1.0x, indicating a net cash position.

• Equity/assets ratio improved to 37.2% from 32.3%.

• Return on capital employed reached 31.6% (up from 30.7%).

Outlook and guidance

• August net sales exceeded 1 billion SEK for the first time, with 7% organic growth.

• Management expects continued tailwinds from favorable USD and transportation costs, though Norwegian krona remains a headwind.

• No signs of margin decline in the near term; margin target remains at 7–9%, but current rolling 12-month margin is 10.5%.

• Store expansion target of 10 net new stores for the year is reaffirmed, with a focus on quality locations.

• Continued focus on operational efficiency and cost control to offset currency headwinds.