USWE Sports (USWE) Q1 24/25 earnings summary

Executive summary

• Net sales decreased by 2% year-over-year to SEK 26.0 million for Q1 2024/2025, with organic growth down 3% currency-adjusted.

• EBITDA fell to SEK -2.0 million from SEK 1.9 million, and operating EBIT dropped to SEK -3.0 million from SEK 1.0 million.

• The quarter was marked by logistical challenges, a shift in sales mix, and a focus on cash flow and inventory reduction.

• A fully subscribed rights issue brought in SEK 16.3 million in new liquidity after costs and debt set-off.

Financial highlights

• Gross margin declined to 57% from 63% due to a higher share of distributor sales and lower direct-to-consumer sales.

• Result before tax was SEK -4.8 million, compared to SEK 0.7 million in the same quarter last year.

• Cash flow from operations improved to SEK -5.4 million from SEK -7.3 million year-over-year.

• Liquid assets at quarter-end were SEK 9.5 million, up from SEK 4.0 million a year earlier.

• Net debt reduced to SEK 9.0 million from SEK 28.1 million year-over-year.

Outlook and guidance

• Market recovery is ongoing but not yet at normal levels; sales swings and timing effects are expected to continue.

• Expansion of the US reseller network and new product launches for 2025 are expected to support future growth.

• Inventory reduction and improved supply chain resilience are key operational focuses.