Clas Ohlson (CLAS) Q2 24/25 earnings summary

Executive summary

• Q2 sales reached 2,801 MSEK, up 14% year-over-year, with 8% organic growth and 9% from the Spares Group acquisition; operating profit was 307 MSEK with an 11% margin.

• Online sales accounted for 19% of total sales in Q2, with the Spares Group contributing 211 MSEK; online sales grew 6% excluding Spares.

• November sales grew 14% to 1,361 MSEK, with 13% organic growth and broad-based performance across all markets.

• Store network expanded by 14 stores year-over-year as of November, with 6 new stores opened in Q2 and further expansion planned.

• Recognized as one of Sweden's most equal companies by the Allbright Foundation.

Financial highlights

• Q2 operating profit was 307 MSEK (up from 245 MSEK), with a margin of 11%; profit after tax reached 230 MSEK, and EPS rose to 3.63 SEK from 2.74 SEK.

• H1 operating profit was 510 MSEK; H1 operating cash flow was 530 MSEK, and free cash flow for H1 was 176 MSEK.

• Gross margin declined to 39.8% from 41.3%, mainly due to currency effects, sourcing, and the lower margin of Spares Group.

• Net debt/EBITDA (excl. IFRS 16) at -0.2, indicating a net cash position; equity/assets ratio at 31.6%.

• Inventory at period end was 2,869 MSEK, up from 2,614 MSEK.

Outlook and guidance

• Store network expansion is on track, targeting about 10 new stores in 24/25, with continued focus on cost control, assortment development, and strengthening the online business.

• Q3 is expected to see less negative impact from the Norwegian krone, but higher transportation costs from the summer will affect Q3 and Q4; freight cost headwinds are expected to subside after Q4 if trends continue.

• Christmas shopping season started strong, with expectations to surpass last year's record sales.