This article first appeared on GuruFocus .
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Revenue:Group revenue increased by 6.8% to NOK 914.8 million in the second quarter, with constant currency growth of 9.1% and like-for-like growth of 8.3%.
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Online Sales:Online revenue grew close to 43% year on year, with the online share reaching 15.9% (20.4% including click and collect).
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Gross Margin:Group gross margin improved by 0.9 percentage points to 63.2%, driven by lower freight costs and favorable currency effects.
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EBITDA:EBITDA increased by 15.2% in the quarter, reflecting robust revenue growth and improved operating leverage.
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Operating Expenses:Reported operating expenses increased by 5.4%, driven by marketing activity, bonus accruals, and IT investments, partly offset by currency effects.
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Kid Interior Revenue:Total revenue growth of 7.1% with like-for-like growth of 6.7%, driven by an increased number of transacting customers.
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Hemtex Revenue:Reported total growth of 6.3% in NOK, with constant currency growth of 12.5%, supported by strong development in both physical stores and online sales.
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Hemtex Like-for-Like:Like-for-like stores in Hemtex performed well with 6.9% growth compared to Q2 last year.
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New Categories Growth:New categories introduced since 2022 grew by 25.7%, including furniture categories under the revised definition.
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Cash Flow:Cash flow from operations improved significantly from last year, following the normal seasonal pattern.
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Liquidity:Cash and available credit facilities stood at NOK 318.8 million at quarter end.
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Dividend:Dividend payment of NOK 2.50 per share was made during the quarter, representing a total cash distribution of NOK 101.6 million.
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Store Portfolio:Four store projects were completed, one extended store was opened, and three stores were closed during the second quarter.
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Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Strong revenue growth of 6.8% reported and 9.1% in constant currency, driven by robust performance in both physical stores and online.
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Online sales surged nearly 43% year-over-year, with online share increasing to 15.9% (20.4% including click and collect).
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Gross margin improved by 0.9 percentage points to 63.2%, supported by lower freight costs and favorable currency effects.
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New categories introduced since 2022 grew by 25.7%, including strong performance in outdoor furniture and bathroom products.
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Warehouse operations stabilized, with labor productivity up 25% year-over-year, and no revenue impact from previous logistical challenges.
Negative Points
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Negative Easter calendar effect impacted sales, particularly in Norway, despite overall growth.
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Elevated freight rates due to global disruptions and Middle East unrest may negatively impact margins going forward.
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Operating expenses increased by 5.4%, driven by higher marketing, IT investments, and bonus accruals, partly offset by currency.
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Hemtex.de launch had a negative contribution of 0.4 million in revenue and costs below 1 million, with the Hemtex.com launch delayed to later in 2026.
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Net interest-bearing debt increased year-over-year due to higher activity levels, working capital changes, and investments, with gearing ratio at 2.06.
Q & A Highlights
Q: What is the status of the warehouse operations, and what remains to be achieved in terms of efficiency going forward? A: Marianne Fulford (CEO) stated that warehouse operations are now stable, with goods being dispatched as planned, and the challenges from 2025 did not affect sales in the quarter. She noted that ongoing improvements are being made, and further efficiency gains are expected as system modernization is finalized, extending into 2027. CFO Mats Keegan added that labor productivity increased by 25% compared to last year, even with significantly higher operational volumes.
Q: Can you elaborate on the strong online revenue development in the quarter? A: Marianne Fulford (CEO) attributed the strong online growth to organizational changes in the e-commerce department, new expertise, and an upgraded website with a new UX design that improved the customer experience. Successful marketing campaigns drove traffic, and the company saw higher conversion rates. Larger reservations of seasonal inventory for the web shop also contributed. She cautioned that the company is meeting challenging comparisons from the second half of 2025, when online growth was exceptionally high due to product availability issues in stores.
Q: With the expected increase in freight rates, are you taking any actions with regards to hedging? A: Mats Keegan (CFO) confirmed that the company continues to source and buy freight in the spot market, consistent with its successful strategy from previous years. He explained that this approach provides maximum flexibility, allowing the company to optimize freight purchases based on current market conditions, routes, and shipment timing.
Q: Did the strong seasonal sales have a positive impact on gross margin this quarter? A: Mats Keegan (CFO) confirmed that there were favorable margin effects from currency this quarter, particularly impacting seasonal and new products. He explained that the positive currency impact is typically seen in seasonal products, while the purchasing of non-seasonal assortment takes more time to reflect in the cost of goods sold. This resulted in a positive impact on the seasonal assortment compared to last year.
Q: Can you provide more color on the performance in Germany (Hemtex.de) and the lessons learned? A: Marianne Fulford (CEO) stated that the site has been live for four months, and the primary focus is on learning about the customerswho they are, where they live, and what they buy. This data will inform future strategy. Mats Keegan (CFO) added that revenues were 0.4 million during the quarter with costs, mainly marketing, below 1 million, resulting in a negative contribution in the launch quarter, which is in line with expectations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
