Clas Ohlson (CLAS) Q2 25/26 earnings summary

Executive summary

• Q2 net sales rose 7% year-over-year to 3,009 MSEK, with 9% organic growth and strong B2C online sales; operating profit reached 410 MSEK, with a 13.6% margin.

• EPS for Q2 was 4.85 SEK, up from 3.63 SEK last year.

• Online sales grew 8% to 572 MSEK, with B2C up 20% and online share at 19% of total sales.

• Store network expanded with three new openings, and Club Clas membership reached six million.

• Customer satisfaction remains high, with a Net Promoter Score of 57.

Financial highlights

• Gross margin improved to 48.7%, up 2.6 percentage points year-over-year, driven by lower sourcing costs and positive mix effects.

• Net debt/EBITDA (excl. IFRS 16) was -0.7, indicating a strong financial position.

• Cash flow from operating activities for H1 was 552 MSEK, with free cash flow at 202 MSEK.

• Inventory at period end was 2,866 MSEK, stable year-over-year.

• Return on capital employed reached 32.8%.

Outlook and guidance

• Focus on organic growth, store expansion, and e-commerce profitability, with continued investment in automation and logistics.

• Margin outlook for H2 influenced by favorable U.S. dollar and lower input costs, but offset by weak Norwegian krone and high comparables.

• Plans to distribute at least half of EPS to shareholders, with ongoing evaluation of M&A opportunities.

• November sales up 3% year-over-year, with 6% organic growth.

• Distribution centre investment expected to enable future growth and efficiency, with a four-year payback.