Embellence Group (EMBELL) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were SEK/MSEK 201, a 1% decrease year-over-year, with 3% organic growth offset by a 4% negative currency effect.

• Gross margin improved to 62.8% from 62.0% year-over-year, driven by D2C, favorable channel mix, and premium product launches.

• EBITDA/EBITA margin declined to 14% from 16% last year, impacted by strategic investments and restructuring costs, especially at Cole & Son.

• Net profit for the period was MSEK 18, a 25% decrease year-over-year; EPS was SEK 0.75 (1.00).

• Operating cash flow increased to SEK/MSEK 14 from SEK/MSEK 8 in Q1 2025.

Financial highlights

• Net sales reached SEK/MSEK 201, a 1% decrease year-over-year due to currency headwinds; organic growth was 3%.

• Gross margin improved to 62.8% (62.0% last year).

• EBITDA/EBITA margin declined to 14% (16% last year), mainly due to restructuring and investments.

• Net profit was MSEK 18 (24); EPS SEK 0.75 (1.00).

• Net debt/EBITDA improved to 0.5x (0.7x last year); equity ratio 68% (65%).

Outlook and guidance

• Continued focus on D2C, international expansion, and hospitality channel expected to drive future growth.

• Inventory levels expected to normalize by Q3 after a temporary increase for supplier transition.

• Continued investments in e-commerce and international expansion planned.

• Short-term sales and margin headwinds anticipated from Cole & Son restructuring, with transition effects expected to last into Q2.

• FX headwinds expected to moderate if current rates persist.