Sweden's New Wave Q2 sales rise 13.5% on organic growth, acquisitions
Sweden's New Wave Q2 sales rise 13.5% on organic growth, acquisitions
Overview
Sweden-based promotional products supplier's Q2 net sales rose 13.5% yr/yr, driven by organic growth and acquisitions
Operating profit and EPS rose yr/yr
Gross margin benefited from refunded U.S. customs duties and lower share of trading operations
Outlook
Company expects higher organic growth in the near future
Company to open new warehouse and logistics center in Dallas in October 2026
Company plans to launch Tenson brand in U.S. market during autumn 2026
Result Drivers
ACQUISITIONS - Cotton Classics acquisition contributed 12.3% to Q2 sales growth, including sales of New Wave brands added after the acquisition
REFUNDED CUSTOMS DUTIES - Gross margin benefited from refunded U.S. customs duties and a lower share of trading operations
Company press release: ID:nMFN8GZgrM
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 2.61 bln |
|
Q2 EPS |
| SEK 1.52 |
|
Q2 Net Income |
| SEK 202 mln |
|
Q2 Adjusted Free Cash Flow |
| SEK 95 mln |
|
Q2 EBIT |
| SEK 295 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 24.9% above its August 19 closing price of SEK93.30
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 19 - Sweden's Idun Industrier Q2 sales rise on acquisitions
Aug 19 - Sweden's Latour Q2 sales rise on strong industrial demand
Aug 18 - Orthex Q2 sales rise on storage and kitchen category performance
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.)