Kjell Group AB (publ) Q2 2025 Earnings | 07/18/2025

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Kjell Group AB (publ) announced its second quarter 2025 results on July 18, 2025, reflecting a challenging operating environment with pressures on top-line performance and profitability. Net sales for the quarter fell by 10.9% to SEK529.7 million, compared to SEK594.4 million in Q2 2024. The decline was primarily attributed to weaker online sales in Denmark and reduced footfall at service points in Sweden, partially offset by a higher sales value per transaction. Despite these headwinds, the company was able to improve its gross margin by 1.5 percentage points year-over-year, reaching 42.2%, aided by a focus on product mix and pricing strategies. The quarter saw gross profit decline by 7.7% to SEK223.7 million. Operating profit (EBIT) was negative SEK14.5 million, compared to negative SEK8.7 million in the same period last year. Adjusted EBITA also turned negative at SEK-9.2 million, down from SEK0.3 million a year ago. Kjell Group reported a net loss for the quarter of SEK20.9 million, widening from a loss of SEK18.4 million in Q2 2024. Basic and diluted earnings per share both stood at negative SEK0.36, a slight improvement from negative SEK0.59 per share in the prior year’s quarter. Working capital fluctuations and elevated inventory levels, driven by lower-than-expected sales and proactive stock management for the summer season, weighed heavily on operating cash flow, which was negative SEK136.1 million for the quarter. The company initiated accelerated action programs to address these challenges and support its long-term ambitions. Looking ahead, management is focused on executing cost-saving initiatives, optimizing working capital, and leveraging its retail and online presence across the Nordics. The company is also navigating changes in ownership structure following FSN Capital’s divestment. Strategic efforts remain concentrated on fortifying its market position, restoring profitability, and supporting future growth, while continuing to prioritize customer engagement and operational flexibility in an evolving retail sector. #KjellGroup #Q22025 #Earnings #FinancialResults #Retail #Profitability #Nordics #NetLoss #OperatingIncome #Sales #Denmark #Sweden #OnlineSales #MarketUpdate