The quarter's sales have been affected by low inventory availability during January and February. A decision in 2025 to slow down purchases left a clear mark in the stores.
Long lead times and a heavily burdened purchasing team, which simultaneously drove price negotiations and rebuilt the assortment strategy, meant that the shelves were ultimately gaping empty, comments CEO Sandra Gadd in the report.
She further describes the beginning of the year:
Our figures in January and February hurt, with double-digit sales declines in all markets.
In parallel with the challenges, the company carried out a planned move to a new automated central warehouse. At the end of February, the stock situation began to stabilize as a result.
At the end of February, I was able to go into our stores without a lump in my stomach from empty shelves.
According to Sandra Gadd, March marked a turning point as inventory availability improved.
In Sweden and Norway, the trend returned to positive in March, while Denmark continued to have a large decline.
The same positive sales trend is said to have continued into April.
Although revenue decreased in the quarter, Kjell Group's gross margin increased to 44.9 percent, up from 42.1 percent compared to the same period last year. This is explained, among other things, by renegotiated supplier agreements and an increased share of sales of own brands.
For the rest of 2026, the company's strategic focus lies on the last months of the year.
The rest of the year is about focus. We are focusing on Q4. That's when we will ensure growth, says Sandra Gadd.
Until then, the goal is to ensure the availability of the basic range and to continue prioritizing the company's profitability.
In addition to the warehouse move, Kjell Group has carried out a directed new issue and a preferential issue during the quarter to strengthen its financial position. In Denmark, a transformation of the subsidiary AV-Cables is also underway, which has a new CEO and was integrated into the company's new central warehouse in March.