Strong start to 2026 with continued growth and cash generation
January – March 2026
- Net revenue increased by 5%, totalling SEK 421 (401) million. In local currencies there was growth of 10%.
- EBIT was SEK -4 (-15) million. Adjusted EBIT was SEK 2 (-11) million and the adjusted operating margin was 0.5% (-2.7%).
- Cash flow for the period was SEK 36 (-120) million and the cash position at the end of the period was SEK 273 (175) million.
- Earnings per share before and after dilution was SEK -0.08 (-0.43).
| Jan-Mar | Apr 2025- Mar 2026 |
Jan-Dec 2025 | ||
| SEKm (unless stated otherwise) | 2026 | 2025 | ||
| Net revenue | 421 | 401 | 1,835 | 1,816 |
| Growth (%) | 5% | 13% | 10% | 12% |
| Growth in local currencies (%) | 10% | 12% | 14% | 14% |
| Gross profit | 174 | 171 | 775 | 773 |
| Profit after variable costs | 80 | 76 | 382 | 378 |
| Overhead costs | -69 | -72 | -278 | -281 |
| EBITDA | 5 | 1 | 84 | 80 |
| EBIT | -4 | -15 | 39 | 28 |
| Adjusted EBITDA | 11 | 4 | 104 | 97 |
| Adjusted EBIT | 2 | -11 | 59 | 45 |
| Items affecting comparability | -6 | -4 | -20 | -17 |
| Profit/loss for the period | -6 | -34 | 27 | -0 |
| Gross margin (%) | 41.3% | 42.6% | 42.3% | 42.6% |
| Profit after variable costs (%) | 19.1% | 19.0% | 20.8% | 20.8% |
| Adjusted EBITDA (%) | 2.7% | 1.1% | 5.7% | 5.3% |
| Adjusted EBIT (%) | 0.5% | -2.7% | 3.2% | 2.5% |
| Cash flow for the period | 36 | -120 | 107 | -50 |
| Free cash flow | 41 | -113 | 130 | -24 |
| Net debt (+) / Net cash (-) | -271 | -175 | -271 | -235 |
| Earnings per share before dilution (SEK) | -0.08 | -0.43 | 0.34 | -0.01 |
| Earnings per share after dilution (SEK) | -0.08 | -0.43 | 0.34 | -0.01 |
Significant events during the reporting period
New credit facility agreement
The Group has a renewed credit facility agreement in place with its existing banking partner, one of Sweden’s largest banks, replacing the facility that was previously scheduled to expire in the first quarter of 2026.
Significant events after the end of the reporting period
Series C share issue
In April 2026, Pierce Group AB (publ) carried out a directed issue of 850,000 series C shares to Nordic Issuing AB to ensure the delivery of performance shares to participants in the LTIP 2025/2028 performance-based share program.
CEO comments
In the first quarter of 2026, adjusted EBIT improved to SEK 2 million from SEK -11 million in the prior year, driven by 5 percent growth (10 percent in local currencies) and cost efficiency improvements from our transformation program, despite SEK 6 million in temporary transformation costs. Over the last twelve months, adjusted EBIT reached SEK 59 million, despite SEK 26 million in temporary transformation costs.
The global environment remains challenging, characterized by geopolitical instability. Against this backdrop, we believe we continued to gain market share.
The first quarter is our most weather-sensitive quarter, and this was also the case this year. In the Nordics, favourable conditions supported demand in our Sledstore business, while colder-than-usual weather across Europe, including the coldest January in 16 years and continued cold conditions in February, had a negative impact on demand in our core motorcycle category. Weather conditions improved in March, supporting demand towards the end of the quarter.
Margin after variable costs, remained stable compared with last year, supported by improved performance marketing efficiency, despite a 1.3 percentage point decline in gross margin. Pricing and marketing efficiency are closely interlinked, with increased competitiveness typically driving higher conversion and reducing the need for performance marketing spend, making contribution margin a more representative measure of underlying performance. We continue to prioritize contribution profit growth in absolute terms, while ensuring gross margins remain at healthy levels.
We continued to see improvements in cost efficiency, with operating expenses decreasing to 16.4 percent of net revenues, down 1.5 percentage points compared with the prior year, reflecting the structural efficiencies delivered through our transformation program, Pierce 2.0.
During the quarter, results were negatively impacted by SEK 6 million in transformation-related costs, primarily driven by external consultants and temporary parallel license fees associated with the implementation of our new cloud-based IT systems. In line with applicable accounting standards, these costs are expensed as incurred. As we approach completion of the transformation, these costs will phase out. We have already seen a gradual benefit from declining transformation-related costs and depreciation and amortization, with part of the initially identified SEK 30-40 million annual EBIT improvement materializing. A more significant step-up, corresponding to approximately SEK 20-30 million on an annualized basis, is expected as the remaining IT systems are fully implemented from the second half of the financial year.
Since the launch of Pierce 2.0 in the third quarter of 2023, net revenues have grown by 16 percent, while the number of white-collar FTEs has been reduced from 256 to 156, a decrease of approximately 40 percent. As a result, net revenues per white-collar FTE have increased by 90 percent, reflecting significant efficiency gains and the scalability of our business model. We are also increasingly leveraging data and AI-supported tools across the organization to further enhance efficiency, decision-making, and scalability.
We continue the rollout of several key IT systems. Last year we replaced two out of four core systems as part of our technology transformation – our Customer Data Platform (CDP) and Product Information Management (PIM) system. A pilot of the new e-commerce platform was launched last year, and we are continuously learning and improving it, with encouraging sales development, while preparing for deployment into additional markets. The full rollout of the new e-commerce platform and the implementation of our new Warehouse Management System are expected to be completed during the first half of 2026.
Depreciation and amortization decreased year over year, in line with our expectations as older assets become fully depreciated and transformation-related investments normalize, contributing to the improvement in adjusted EBIT.
Our financial position remains strong, with a cash position of SEK 273 million at the end of the quarter, further supported by a credit facility of SEK 150 million, available if needed.
As our new technology platform is rolled out, we will gradually expand into new markets and adjacent verticals, including localizing the nine markets currently served through our .eu site that were not included in the pilot launched last year. We are also seeing encouraging momentum in our mountain bike and scooter/moped categories, where we are leveraging our platform to drive cross-selling opportunities. These initiatives will take time to scale, but we expect them to contribute meaningfully to our long-term growth.
The European e-commerce market for motorcycle gear and equipment remains highly fragmented, with significant benefits from scale, particularly when combined with local market leadership and a technology-enabled platform. We actively evaluate opportunities to participate in industry consolidation, supported by our position as one of the largest players, the only truly pan-European platform, and the only listed company in the market. Our multi-category offering and high private label share provide a strong basis for synergies and value creation. While current market conditions, including heightened geopolitical uncertainty and a more constrained capital environment, make execution more challenging, we see potential to take an active role as opportunities arise.