Yesterday, Ehandel.se reported that Borås-based Vanbruun is moving into a new showroom at the NK department store in Gothenburg and simultaneously expanding its international presence. This offensive is backed by recent financial results for the 2025 fiscal year, where revenue climbed by 22 percent to SEK 218.8 million, up from SEK 179.8 million the previous year.
The operating profit landed at SEK 31.2 million, which corresponds to an operating margin of 14 percent. Now, as CEO and founder Victor Halvarsson explains the decisions behind these figures, the starting point is a market where fewer and fewer couples are tying the knot:
We don't see a huge difference in everyday life, as the decline is happening very slowly. But we are noticing that it is becoming more difficult to continue growing once you have reached a certain level, and this is especially true in Sweden. Therefore, we are taking market share, growing outside of Sweden and broadening our range.
The downward trend in the demographic curve for traditional marriages is a factor that management has incorporated into its long-term calculations. To avoid getting stuck in a saturated domestic market, the company is forced to rethink how and where the next growth phase will be created, explains Victor Halvarsson:
We are experiencing that it is becoming increasingly difficult to grow in a market like Sweden, where there are many skilled players. Our industry is shrinking, so growth must come from taking market share from others. It's easier to operate in an industry where the underlying market is constantly growing, while our market will likely decrease year after year. We must therefore take more market share or make our market bigger by starting to offer products that we do not have today.
Does not tie up capital in inventory
A key explanation for why the jewelry retailer can maintain an operating profit of over SEK 31 million in a challenging consumer climate lies in the production chain itself. Unlike traditional jewelry chains with heavy inventory in store vaults, Vanbruun operates entirely without ready-made stock.
The customer-driven manufacturing process protects cash flow and eliminates the need for margin-squeezing campaigns, says Victor Halvarsson:
Everything is manufactured only when the customer has ordered, so we do not tie up capital in finished jewelry and never have to discount anything. At the same time, we are becoming more efficient all the time, and that gives us great advantages as we grow.
Another structural change in the jewelry industry in recent years is the emergence of lab-grown diamonds. At Vanbruun, the shift between natural and synthetic stones has now reached a clear equilibrium in sales.
How the choice of diamond affects the calculation for each individual deal is about the balance between percentage markups and average order value, he notes:
Customer demand has been constant. They choose between two products that are very, very similar. Margins have both improved and deteriorated. Lab-grown diamonds have an inherent higher percentage margin, but because the product costs less on average, what we earn per ring in krona is often not much higher. So it's pretty much a wash, I would say.
Foreign markets account for one third
As the Swedish market matures, the focus has increasingly turned to the rest of Europe. In 2025, foreign sales amounted to SEK 74.8 million, which corresponds to 34 percent of total revenue.
At the same time, purchasing behavior differs significantly between the Nordic home markets and the continent, where the brand is still a new name for consumers, says Victor Halvarsson:
In Sweden and the Nordics, where we are more established, we see more customers who just go for it. They already know us, either as previous customers or through friends and acquaintances. In Paris, which is our newest market, we need to educate customers more.
In both old and new markets, the combination of digital presence and physical meeting places plays a crucial role. Despite the investment in physical locations, it is still e-commerce that drives customer acquisition:
They interact a lot. The online store is, in a way, also a showroom, and it still attracts many customers. Almost all customers who come into our showrooms have in some way interacted with us online before.
Aims for Italy and Germany
With the upcoming establishment at NK in Gothenburg, Vanbruun gets a new foothold on the west coast, but there are no plans to broadly roll out physical stores in Swedish cities. The strategy is instead based on a few selected destinations in combination with digital advice and home loans of rings, argues Victor Halvarsson:
I think we will open a few more showrooms in Sweden, but not many. Another one in Stockholm is enough to cover Sweden with the type of offer we want. We are a bit like a very good restaurant: the ambition is not to be everywhere. We serve Stockholm and northern Sweden from Stockholm, and central Sweden from Gothenburg. Oslo and Copenhagen also help to support large parts of the country. Otherwise, you can always book an online consultation and borrow rings at home.
Looking ahead, the focus is on deepening the foothold outside of Sweden's borders. In 2027, the company plans to ramp up its investments in its existing foreign markets in France, the Netherlands, Norway and Denmark before taking the next geographical step:
In 2027, we will strengthen our focus on the markets where we already are and become an established player there. In the long run, when we have gotten going properly, we will certainly look at new markets such as Italy and Germany, which we have looked at before, concludes Victor Halvarsson.