Lyko (LYKO-A) Q1 2026 earnings summary

Executive summary

• Prioritized profitability and organizational efficiency amid a challenging and competitive market, launching a SEK 100 million cost-saving program and focusing on logistics stabilization and margin improvement.

• Net sales for Q1 2026 were SEK 875 million, down 4.8% year-over-year, mainly due to campaign timing and weaker performance outside Sweden.

• Gross margin improved to 44.1%, the highest since Q4 2024, driven by price discipline, supplier contributions, and cost control.

• EBIT was SEK 4 million (0.4% margin); excluding one-off restructuring costs of SEK 22 million, adjusted EBIT was SEK 25 million (2.9% margin), close to prior year levels.

• Own brands, especially Waterclouds, grew 14% to SEK 75 million, now representing 8.5% of net sales, with the launch of new brand Gleeze.

Financial highlights

• Net sales fell 4.8% (3.4% in local currencies) to SEK 875 million, with Sweden showing growth but declines elsewhere.

• Gross profit was SEK 386 million, with a gross margin of 44.1% (up from 43.0%).

• EBIT was SEK 4 million (0.4% margin); adjusted EBIT was SEK 25 million (2.9% margin).

• SEK 25 million in revenue was deferred to Q2 due to campaign shifts.

• Operating cash flow was SEK -484 million, impacted by normalization of accounts payable and inventory.

Outlook and guidance

• Focus remains on cost control, stable margins, and improving average order value, with a temporary pause in European expansion to prioritize Nordic profitability.

• CapEx for 2026 forecast at SEK 70 million, with half allocated to new stores and the rest to automation and IT.

• No major new investments planned; focus is on leveraging existing assets and gradual deleveraging.