RVRC (RVRC) Q3 24/25 earnings summary

Executive summary

• Q3 net sales reached SEK 486 million, up 2% year-over-year, with strong market share gains in the Nordics and select international markets despite challenging conditions.

• Adjusted EBIT was SEK 101 million, maintaining a 20.8% margin, while reported EBIT was SEK 80 million (16.4% margin).

• Gross margin was 69.4%, down from 71.5% last year due to higher campaign activity and currency effects.

• 78% of net sales were generated outside the Nordics, with DACH region flat and Rest of World down 3% year-over-year.

• Opened the first physical outlet store in Stockholm, with further retail expansion under evaluation.

Financial highlights

• Q3 net sales: SEK 486 million (+2% year-over-year); gross profit: SEK 337 million; gross margin: 69.4%.

• Adjusted EBIT margin: 20.8% in Q3; EBIT margin: 16.4%; LTM adjusted EBIT margin: 20.5%.

• Inventory at quarter-end was SEK 543 million, up SEK 82 million year-over-year but down SEK 49 million sequentially.

• Net cash position at quarter end was SEK 147 million, with an undrawn SEK 600 million credit facility.

• Cash flow from operating activities was negative SEK 110 million, mainly due to changes in operating liabilities.

Outlook and guidance

• Early Q4 sales show growth in local currencies compared to the same period last year.

• The company remains confident in its ability to outperform the market and continue gaining market share.

• Market conditions remain challenging, especially in Germany and internationally, but the company is well positioned for long-term growth.

• Inventory expected to gradually decrease over the coming year.

• New financial targets: annual growth of 20% and adjusted EBIT margin of 20% through FY 2026/27.