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Bubbleroom's Margin Under Pressure – Here's the New Plan

Magnus Månsson, CEO
Reorganizing the management team.

Fashion player Bubbleroom has closed the books for 2025, a year that has been about transformation and new strategic choices. It has previously been communicated that the company has switched platforms to Shopify and introduced savings programs to turn around the trend. Now that the entire annual report has been published, a more detailed picture emerges of how the e-retailer navigates a challenging market.

READ ALSO: E-retailer's million-dollar investment in new technology - slims down by SEK 16 million

The report shows how the gross margin has been affected by the new focus for marketplaces, but it also covers investments in clothing repairs, an integrated second-hand service and a new recruitment to the management team.

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Throughout the year, Bubbleroom has consciously chosen to adjust its presence on the Zalando marketplace. By prioritizing profit per sold item over pure sales volume, the company has attempted to create a more sustainable business model over time.

This strategic shift, combined with slightly higher discounts, is explained as the reason for the gross margin for the full year falling to 63.5 percent, compared to 65.5 percent the previous year.

Total revenue amounted to SEK 424.6 million and operating profit amounted to SEK -20.7 million.

This year's results are weaker than the previous year, which is largely a consequence of the strategic changes we have implemented during the year, writes Magnus Månsson, CEO of Bubbleroom, in the report.

He simultaneously emphasizes that the extensive initiatives are necessary for the company's future positioning:

Through changes in the assortment, investments in a new e-commerce platform and a more efficient organization, we have laid the foundation for the next phase in Bubbleroom's development.

To reverse the economic trend, a savings program has been implemented that is expected to generate annual improvements of between SEK 7 and 10 million. Part of this involves the company starting to rent out parts of its warehouse premises in Borås to optimize costs.

Circular Initiatives and Innovation

The annual report shows that the e-retailer has established new processes to manage its assortment in a more resource-efficient manner. An internal repair station called Re:room has been put into use where products with minor cosmetic defects are repaired, adjusted or cleaned so that they can return to sale.

The company has also conducted tests with circular collections within the Bubbleroom Ateljé initiative, where overstock has been remade through local production in Borås.

To lower the threshold for customers' resale, the Bubbleroom Pre-loved service has been developed. Through a new function on the customer's personal pages, it is now possible to create an advertisement for previously purchased products with a simple click directly from the order history.

Key Recruitment and Changed Principles

Bubbleroom is also strengthening the organization by recruiting Helen Landerborn to the role of new CPO, responsible for purchasing and assortment. She started her employment in early January 2026 and comes from experience in leading positions in the fashion industry.

The annual report also notes a change in how the company reports its revenue. Return fees paid by customers upon returns were previously booked as other external costs, but are now classified as revenue.

With the changes we have made during the year, we are better equipped to continue developing Bubbleroom and create long-term value going forward, writes Magnus Månsson.

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Editorial Staff
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