This article first appeared on GuruFocus .
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kid ASA ( FRA:97Q ) reported a solid 9.1% revenue growth in Q1 2026, driven by positive developments across both Kid and Hemtex.
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Online revenues increased significantly, representing 14.1% of total group revenues, driven by improved website features and customer experience.
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Gross margin improved by 0.6 percentage points to 61.2%, primarily due to lower freight costs and reduced clearance sales.
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Operational stability improved with normalized warehouse capacity, supporting increased volumes and normal deliveries to stores.
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Store projects, including refurbishments and new openings, continue to support profitable growth and future expansion plans.
Negative Points
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Operating expenses increased by 8.6% due to new stores, projects, and higher activity levels, impacting overall profitability.
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Higher financial costs were reported, mainly due to increased net interest-bearing debt from the transition year 2025.
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The lower basket size in Norway and Sweden was attributed to the Easter effect, impacting overall sales performance.
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The new categories showed somewhat slow growth compared to major and focus categories, indicating potential challenges in diversification.
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The warehouse in Norway still requires a long-term solution, with current sublease agreements covering only 65% of the warehouse cost.
Q & A Highlights
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Q: The extended stores seem to drive higher sales, but at the same time, new categories show somewhat slow growth. Can you please add some color to this? A: (Marianne Swillford, CEO) It's important to note that while new categories are important, the development of our major and focus categories is equally significant. We've seen significant growth in our spring, summer, and Easter assortments, which have been our focus. We've also shifted a lot of furniture in stores to emphasize outdoor furniture. It's essential to view new categories alongside focus and major categories, as they will vary from quarter to quarter.
Q: You had higher financial costs in the quarter. Was there anything special this quarter? A: (Max Keegan, CFO) The increased financial expense this quarter mainly relates to the higher level of net interest-bearing debt we ended 2025 with. This increase was due to the transition year 2025, and we also experienced some AJO effects this quarter.
Q: Can you please elaborate on the Easter effect for the Kid Group and quantify the revenue impact for the second quarter of 2026? A: (Marianne Swillford, CEO) The Easter effect is more pronounced in March for Kid, with more sales occurring then, while Hemtex sees more Easter sales in April. It's important to consider March and April together to understand the full impact of Easter on our sales.
Q: On the new warehouse in Sweden, you mentioned improved efficiency and further gains are expected. Can you provide some details on this? A: (Marianne Swillford, CEO) While I can't provide many details, I can say that we have stabilized the warehouse processes, and there are still many efficiency gains to unlock. These improvements will continue through 2026 and into 2027, with ongoing efforts to enhance efficiency.
Q: Is the lower growth development in Hemtex for the quarter due to lower customer momentum? How did Hemtex perform in April? A: (Marianne Swillford, CEO) You need to consider March and April together due to the Easter effect. The impact is more relevant to Kid in March and to Hemtex in April, as Hemtex and Sweden have more opening hours during Easter. Look at March and April as a whole to understand the performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
