For the third quarter of 2026, the beauty chain Lyko reports a net turnover of just over 1 billion Swedish krona (1,024 million), an increase of 23.8 percent compared to 827 million Swedish krona during the corresponding period last year. At the same time, operating profit (EBIT) climbs from 2 million to 58 million Swedish krona, resulting in an operating margin of 5.6 percent compared to 0.3 percent the previous year.
At the bottom line, the company has thus turned a previous loss of 19 million Swedish krona into a net profit after tax of 35 million Swedish krona. Cash flow from operating activities also increases to 206 million Swedish krona, up from 153 million Swedish krona last year. For the first nine months of the year, turnover amounts to just over 2.9 billion Swedish krona (2.7) with an operating profit of 116 million Swedish krona (62).
In the interim report, CEO and founder Rickard Lyko describes the period as "our best third quarter to date" and points out that the company is now reaping the benefits of several years of restructuring work.
For many years, we have invested in building a Lyko that can become larger than it is today; in logistics, technology, stores and our brand platform. Sometimes these investments have weighed on profitability. Now, together with the extensive work to streamline operations, they are starting to pay off, says Rickard Lyko in the report.
Staff reductions lower costs
A clear explanation for the profit improvement lies on the cost side. Earlier this year, Lyko implemented a savings program and notified staff within both the salaried employee organization and logistics. During the third quarter, personnel costs fell to 119 million Swedish krona, compared to 134 million Swedish krona during the same period of the previous year.
In parallel with the savings, sales of the company's own brands continue to grow. During the quarter, the segment increased by 10.7 percent to 117 million Swedish krona.
The third quarter marks a big step in the right direction. Sales are developing positively, the gross margin remained at 41.5 percent and our cost base continues to decrease as planned, says Rickard Lyko.
Closing the last office outside the Nordics
The work to streamline the organization continues even after the end of the quarter. During October, Lyko initiated a reorganization in Poland which means that the Polish office will be closed and operations will instead be managed centrally.
This decision means that Lyko has now phased out all local offices outside of Sweden, Norway and Finland. The restructuring in Poland is expected to incur one-time costs of 2 million Swedish krona, which will affect the fourth quarter.
Investing in compact city stores and fast deliveries
While international administration is being centralized to the Nordics, Lyko is moving forward within physical retail and local express deliveries. Since August, the company has been rolling out 30-minute deliveries from its store network through a partnership with the platform Wolt.
During Black Friday, the chain will also open its 37th store in central Örebro, marking the premiere of the new compact city format Lyko Store. The long-term plan is to reach 100 physical stores, and during next year, management aims for eight new store establishments. Now the closest focus is on maximizing sales during the last months of the year.
Our advent calendars have gotten off to a good start, and Black Month and the Christmas season, the most intense weeks of the year, are just around the corner, says Rickard Lyko.