New Wave Group (NEWA) Q1 2025 earnings summary

Executive summary

• Achieved 9% organic sales growth in Q1 2025, with all segments and regions contributing and net sales reaching SEK 2,184 million.

• Sports & Leisure segment outperformed the market, especially in teamwear, with Craft brand gaining traction in football and other sports.

• Expansion initiatives in North America and Europe included new warehouses, product launches, and partnerships to boost teamwear presence.

• Maintained strong profitability and a robust balance sheet, enabling ongoing expansion and acquisition opportunities.

• Investments in sales force, automation, and sourcing are supporting future growth despite macroeconomic and tariff risks.

Financial highlights

• Net sales reached SEK 2,184 million, up 9% year-over-year, with organic growth at 9.0%.

• Operating profit increased to SEK 212 million (up from SEK 186 million), with an improved operating margin of 9.7%.

• Net income for the period was SEK 144 million, up from SEK 121 million year-over-year.

• Cash flow from operations was SEK 290 million, with cash flow before working capital changes at SEK 183 million.

• Gross margin remained stable at 49.8% (49.7% last year).

Outlook and guidance

• Management expects continued growth and market share gains, supported by investments in automation, new markets, and product launches.

• Confident in ability to grow despite challenging macroeconomic conditions, but cautious of potential downturns.

• Plans to expand product assortment and warehouse capacity in North America and Europe.

• The company is actively considering further acquisitions.