During the summer, the company behind the e-commerce platforms Ellos, Jotex and Homeroom took the step onto the public stock market. The company has recently been working to adapt its business model to build a more stable platform for the future.
July 8th marked the start of a new chapter for Ellos Group. After several years of transformation, we are now standing with improved profitability, stronger cash flow, a robust capital structure and a leading position in fashion and home decor in the Nordics. The listing on Nasdaq Stockholm gives us a stronger platform to develop our brands, grow the business and create long-term value for shareholders, customers and partners," says Hans Ohlsson, CEO of Ellos Group, in the latest report.
Increased turnover but decreased operating profit
A look at the company's recent report for the second quarter shows that turnover landed at SEK 848.3 million. This is an increase of 6 percent compared to the same period last year, when the figure was SEK 800.9 million.
At the same time, a decrease in operating profit is visible. During the second quarter of the year, the e-retailer reported an operating profit of minus SEK 100,000, which is a decrease of 100 percent from last year's SEK 24.1 million.
How it went during the first half of the year
Looking at the entire first half of the year, the group's turnover increased by 5 percent to SEK 1,679.7 million, compared to SEK 1,602.5 million the previous year.
The operating profit for the half-year amounted to SEK 3.3 million, which is a decrease of 91 percent from last year's SEK 38.5 million. The figures are burdened by one-time costs, including those related to the stock market listing, a tax dispute and a reorganization of the business.
Growth for all three e-commerce platforms
A closer look at the figures shows that all three e-commerce platforms within the group grew during both the second quarter and the first half of the year.
Ellos turned over SEK 619.4 million during the second quarter, which is an increase of 3 percent. During the entire first half of the year, Ellos' turnover was SEK 1.2 billion, an increase of 2 percent.
For the home decor site Jotex, turnover landed at SEK 187.4 million during the second quarter, which corresponds to an increase of 18 percent. For the half-year, Jotex turned over SEK 375.2 million, an increase of 15.5 percent.
Homeroom reported a turnover of SEK 34.9 million for the quarter, which is a growth of almost 3 percent. Homeroom's half-year figure stopped at SEK 74.4 million, an increase of 3 percent.
Savings and increased focus on AI
To meet future demands for digitalization, the company recently reviewed its workforce. The measure led to a decrease in the number of white-collar workers by 7.5 percent. This change cost the company SEK 7.4 million during the second quarter, but is expected to reduce expenses by SEK 19 million per year from autumn 2026.
In the future, technological development will take an increasingly prominent place in daily work.
Data-driven automation and generative AI are gradually becoming an increasingly integrated part of our daily work. We have developed internal processes, built expertise and identified concrete areas of application in areas such as customer communication, campaign production and commercial workflows," says the company's CEO.
Own brands drive growth in Europe
Sales of own brands increased during the quarter and now account for 65 percent of the total volume. Categories such as women's fashion, underwear, sportswear and home textiles attract customers to purchases, while the development of furniture was somewhat slower.
Expansion into the European market is entirely driven by the company's own brands. Subsidiary Jotex continues to grow and was launched in Belgium during the quarter.
Ellos Group is well positioned for the autumn, even though the geopolitical and macroeconomic situation remains uncertain. With a well-positioned offering in fashion and home, a strengthened financial position and a clear strategic roadmap, we have good conditions to continue investing in prioritized areas and drive profitable growth towards our financial goals," says Hans Ohlsson.