Sweden's New Wave Q1 sales rise, profit falls; sees no rapid turnaround

New Wave AB

23/04/2026 06:14

Overview

Sweden branded goods supplier's Q1 net sales rose 6.6% yr/yr despite weak market

Q1 operating profit and EPS declined due to higher costs from acquisitions and investments

Company maintained stable cash flow from operating activities in the quarter

Outlook

Company says market remains difficult to assess and does not expect a rapid turnaround

New Wave says ongoing investments aimed at positioning for future opportunities

Company maintains focus on growth and profitability despite challenging market conditions

Result Drivers

ACQUISITIONS DRIVE GROWTH - Sales growth in local currencies was mainly driven by acquired businesses, contributing 10.3 percentage points

CURRENCY HEADWINDS - Negative currency movements reduced reported sales by 6.6% for the quarter

HIGHER COSTS FROM INVESTMENTS - Increased costs from completed acquisitions and ongoing investments, including IT and a new warehouse, weighed on earnings

Company press release: ID:nMFNTJsvL

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 2.33 bln
Q1 EPS
SEK 0.97
Q1 Net Income
SEK 129 mln
Q1 Adjusted Free Cash Flow
SEK 210 mln
Q1 EBIT
SEK 200 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

Wall Street's median 12-month price target for New Wave Group AB is SEK116.50, about 14.8% above its April 22 closing price of SEK101.50

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)