New Bubbleroom Sweden (BBROOM) Q1 2025 earnings summary

Executive summary

• Net sales/revenue increased by 1.2% to SEK 100.7 million, driven by growth in Sweden and Norway e-commerce sites.

• Adjusted EBITDA improved to SEK -4.0 million from SEK -5.0 million year-over-year, reflecting operational efficiencies and lower return rates.

• EBIT was SEK -6.4 million, an improvement from SEK -8.7 million, and net result was SEK -6.6 million versus SEK -9.0 million in Q1 2024.

• Geographical expansion advanced with new e-commerce sites in Belgium and the Netherlands, supported by a Shopify partnership.

• Sustainability initiatives included a new collection using surplus fabrics produced locally.

Financial highlights

• Gross margin declined to 62.8% from 65.0% due to weaker sales currencies and higher discounts.

• Gross profit decreased by 2.3% to SEK 63.2 million compared to Q1 2024.

• Operating cash flow after investments was SEK -22.6 million, down from SEK -11.2 million, mainly due to changes in Zalando payment terms.

• Inventory at quarter-end was SEK 76.3 million, representing 17.3% of LTM net sales.

• Cash balance at quarter-end was SEK 36.1 million, down from SEK 51.3 million a year earlier.

Outlook and guidance

• Focus on achieving profitability, investing in brand awareness, and operational efficiency.

• Continued growth in Sweden and Norway, launching an outlet site, and evaluating further European expansion.

• Anticipates stronger performance in upcoming quarters, entering the seasonally strongest period.