New Wave Group (NEWA) Q4 2025 earnings summary

Executive summary

• Revenue surpassed SEK 10 billion for the first time, driven by organic growth and the acquisition of Cotton Classics, despite significant currency headwinds and volatile market conditions.

• Growth was reported across all business segments and sales channels, with both organic and acquisition-driven expansion.

• CEO and management remain optimistic about future growth, citing strong brand performance, market share gains, and ongoing investments.

• Profitability was maintained, though operating profit and net income declined year-over-year due to non-recurring costs, high investment levels, and currency effects.

Financial highlights

• Full-year net sales reached SEK 10,019 million, up 5.1% year-over-year, with 9.5% local currency growth.

• Q4 net sales were SEK 3,145 million, up 11.2% year-over-year; Q4 operating profit was SEK 435 million (13.8% margin).

• Full-year operating profit was SEK 1,141 million (down from SEK 1,262 million), with an operating margin of 11.4% (13.2%).

• Net result for the year was SEK 783 million, or SEK 5.90 per share.

• Gross profit margin for the year was 49.0% (49.4%); Q4 margin was 48.5% (50.0%).

Outlook and guidance

• Management targets 10–20% annual growth over an economic cycle, with 5–10% organic growth and a 20% operating margin.

• Continued investments in IT, ERP, automation, and new fulfillment centers are planned through 2026, with cost levels similar to 2025.

• Marketing and legal costs are expected to normalize, with no major legal expenses planned for 2026.

• Inventory levels increased to support anticipated growth and new warehouse launches.

• Dividend proposal of SEK 3.00 per share, corresponding to 51% of net profit, to be paid in two installments.