Clas Ohlson AB (publ) (STO: CLAS B) Q4 2025 Earnings Call | 06/12/2025

Here's a summary of the Claes Olsson Q4 report presentation and related discussions:

Key Highlights from Q4 and Fiscal Year 2025:

• Strong Financial Performance:
  • Q4 sales reached 2.3 billion SEK, with 10% organic growth and 19% online sales growth.
  • Q4 operating profit was 109 million SEK, with a margin of 4.6%.
  • Full-year sales hit a record 11.6 billion SEK, with a profit of almost 1.2 billion SEK (10.1% operating margin).
  • Free cash flow was strong at 1.8 billion SEK.
  • Earnings per share (EPS) increased to 13.91 SEK.
  • The board proposed a dividend of 7 SEK per share.
• Continued Growth in May: 8% organic growth reported.
• Strategic Focus: The company is focused on three key areas of competitive advantage: assortment, brand, and customer experience.
• Five Product Niches: The company focuses on five distinct product niches to ensure relevance throughout the year. These niches are growing.
• Online Business: A profitable and growing segment, representing 21% of total business, with 19% growth in Q4.
• Store Network: Strong like-for-like performance. Three new stores opened in Q4, with plans for approximately 10 new stores in the coming year.
• Customer Satisfaction: Remains high, with strong product reviews and an MPS consistently between 55 and 60.
• Sustainability: Named industry winner in the Sustainable Brand Index for 2025. Spare parts sales are growing, aligning with a sustainable business model.

Financial Details:

• Sales Growth: Driven by all five product niches.
• Market Performance: Strongest growth in Norway. Finland showing positive signs from rebuilds and assortment adjustments.
• Gross Margin: Increased to 39.5%, benefiting from sourcing, transportation, and product mix. Currency effects were a negative factor.
• Operating Profit: Almost 1.2 billion SEK for the year.
• Inventory: Managed efficiently, slightly below last year's levels despite new stores and more products.
• Free Cash Flow: 1.1 billion SEK.
• Net Debt/EBITDA: 0.8, indicating a strong net cash position.
• Investment: 157 million SEK for the year, below initial forecasts. Plans to invest approximately 250 million SEK in the coming year, primarily in the store network and distribution center automation.
• Reporting Change: Transitioning to the "nature of expense" method for external reporting, which will impact the presentation of gross margin but not net sales or operating results.

May Sales Development:

• 8% organic growth, with strong performance across all three countries. This is on top of a strong comparison period from the previous year.

Dividend:

• A dividend of 7 SEK per share was proposed, to be distributed in two payments.

Looking Ahead:

• Strategic Position: The current strategy is working and will continue to be executed.
• Market Opportunity: The addressable market is estimated at 340 billion SEK, with Claes Olsson currently holding a 3.4% market share.
• Growth Drivers: Continued focus on assortment, online growth, and store network expansion.
• Sustainability: Remains a core part of the company's DNA.
• The company is well-positioned for continued growth and value creation, with a strong brand, a needs-driven product assortment, and a unique combination of physical stores and a growing, profitable online presence.