Fashion retailer Bubbleroom reports a profitable third quarter. During the period of July to September 2026, revenue increased by 27.2 percent to SEK 113.7 million, up from SEK 89.4 million during the corresponding quarter last year.
The growth was primarily driven by the company's own e-commerce business, where sales increased by over 30 percent and showed growth in all markets. At the same time, operating profit turned from a loss of SEK -11.1 million to a profit of SEK 9.2 million. The bottom line resulted in a net profit after tax of SEK 9.7 million, compared to SEK -11.3 million the previous year.
The third quarter has historically been a weaker quarter for Bubbleroom, characterized by slightly lower revenue and lack of profitability. Therefore, I am particularly pleased that we are turning things around. For me, this is an important milestone and a convincing sign that the changes we have made continue to have a clear impact,” says CEO Magnus Månsson in the report.
Own brands boost margin
A central part of the improved results is that the proportion of own brands continues to increase. During the third quarter, own brands accounted for 78.1 percent of total sales, up from 69.9 percent last year and getting closer to a share of 80 percent. This contributed to the gross margin climbing to 63.8 percent, compared to 59.8 percent the previous year.
Operating profit before depreciation, EBITDA, amounted to SEK 11.4 million including one-time effects. Adjusted for one-time items, adjusted EBITDA turned to SEK 0.1 million, from SEK -8.5 million during the same period last year.
This is not just a good quarter. Adjusted EBITDA has now improved compared to the previous year for four consecutive quarters,” says Magnus Månsson.
Millions in proceeds after warehouse sale
The quarter's cash flow and results were also characterized by the logistics restructuring that Ehandel.se previously reported on. On the last day of the quarter, September 30, the sale of the company's warehouse automation facility was completed while the clothing retailer vacated its previous lease agreement.
The deal provided a net cash inflow of approximately SEK 32 million and contributed to the operating cash flow after investments landing at SEK 24 million, compared to SEK -22.6 million last year.
From 2027, the new logistics structure is expected to have a positive impact on earnings of between SEK 4 and 7 million per year.
Reducing Zalando – opening more countries
As its own online store grows, Bubbleroom has chosen to deliberately reduce sales through the external marketplace Zalando. The aim is to prioritize profitability over pure sales volume.
Instead, efforts are focused on the ongoing expansion with local e-commerce sites in Europe. The newly launched European markets have already accounted for over 10 percent of the company's gross revenue on individual days.
During the fourth quarter, the company is rolling out its own e-commerce in three more European markets. The online store in Austria opened its doors earlier this week and the next market is up next within a couple of weeks.
During the first half of 2027, Bubbleroom plans to launch in another four to six countries in Europe.