The children's clothing brand Mini Rodini is emerging from a financial downturn for the fiscal year 2025. According to the recently submitted annual report, the group's net sales decreased from SEK 176.3 million to SEK 149.6 million, a drop of just over 15 percent. This marks the third consecutive year of declining revenue since the peak of SEK 199.8 million in 2022.
At the same time, profitability plummeted. Operating profit turned from a profit of SEK 9.1 million in the previous year to a loss of SEK 13.0 million. At the bottom line, the year's net loss amounted to SEK -15.0 million, compared to a surplus of SEK 7.9 million the year before.
US Tariffs Hit Margins Hard
In the administration report, the company points to a combination of more cautious retailers and reduced volumes in e-commerce as the cause of the decline. However, the single most significant factor in the profit decline was a substantial cost impact from exports to the USA.
During the year, the company has been affected by increased customs costs for sales to the USA, which have had a negative impact on earnings. A smaller portion of this cost increase has been offset by increased freight revenue, the management notes in the annual report.
The decrease in e-commerce is explained in the report primarily by lower sales volumes and a deliberate reduction in exposure to the US market following the tariffs. The only sales channel that went against the trend was the company's own physical stores in Sweden and Great Britain, which showed positive development.
Launching US Company to Circumvent Tariffs
To manage trade barriers and save the e-commerce business in the USA, the company is now undergoing a strategic transformation. In early 2026, the group established a wholly-owned US subsidiary, Mini Rodini Inc, which will manage operations locally on site.
The company has commenced its operational activities with a focus on e-commerce, with planned gradual expansion to additional sales channels. The establishment is expected to strengthen the group's future growth opportunities and create conditions for more efficient management of customs and tax-related flows, the board of directors states.
Rescue Package, New Share Issue and Board Departures
Alongside the US initiative, major changes are taking place at the ownership and management levels. Documents show that the founders and major shareholders Cassandra Rhodin and Jon Sandin – who own 33.4 and 33.1 percent of the shares respectively – left the board in September 2026. Marcus Gårdö is the new chairman of the board, while Jonas Meerits remains a member.
At the same time, the founders are contributing private capital to support the cash flow. In early 2026, the company received subordinated shareholder loans of SEK 1 million from the owners, in addition to a new loan of SEK 2 million from Almi. Furthermore, the existing check account credit is renegotiated, reduced from SEK 15 million to SEK 10 million during the year.
In October 2026, Mini Rodini has also registered an application with the Swedish Companies Registration Office to carry out a new share issue to increase the share capital.
Cutting Salary Costs by Eight Million
The operational operations have been managed since 2024 by CEO Marina Davarinou, who has a background as CEO of Ellos, Marketing Manager at Netonnet and COO at Jollyroom. Under her leadership, a comprehensive savings package has been rolled out to cut the cost base.
Among other things, personnel costs in the group have been reduced from SEK 48.3 million to SEK 40.1 million during the year, through organizational changes and restraint in new recruitments. Savings have also been made in marketing and external costs, while the company has invested in and written down a new ERP and WMS system to increase scalability going forward.
The market is still considered challenging, characterized by increased price pressure and caution within retail. The company therefore intends to prioritize stabilization of sales, strengthened margins and a more focused and efficient organization, the board concludes.