Swedish home improvement and electronics retailer Clas Ohlson reported first-quarter fiscal 2026/27 results showing an 11% organic sales increase, meeting its long-term growth target and lifting operating margins to 12%.
Total sales for the period reached SEK 3.278 billion, a 16% rise year-over-year, driven by an 11% organic increase, a 3% contribution from acquisitions and a 2% currency effect. Operating profit rose 40% to SEK 393 million, while earnings per share climbed 45% to SEK 4.75. The company’s return on capital employed increased to 34.9%, exceeding its 30% target.
Gross margin expanded by 1.8 percentage points to 47.5%, supported by higher sales volumes and improved product mix. Operating cash flow surged 42% to SEK 663 million, with free cash flow totaling SEK 363 million. Personnel expenses rose to SEK 637 million, reflecting expanded retail operations and staffing levels.
Online sales jumped 35% to SEK 734 million, accounting for 21% of rolling 12-month revenue, while physical stores generated 79% of total sales. The company operated 250 stores at quarter-end, up nine locations year-over-year. Regional performance showed Sweden and Norway leading with 11% and 10% organic growth respectively, while Finland recorded 9% growth.
August sales, a key indicator for the second quarter, rose 13% to SEK 1.154 billion, with organic growth of 8% across all markets. The company’s financial targets include 5% annual organic sales growth, an operating margin around 12%, and a return on capital employed near 30%. Clas Ohlson maintains a dividend policy of distributing at least 50% of after-tax earnings, subject to financial position.
The retailer expanded its robotic lawn mower offering from five to 12 brands, now featuring approximately 30 models. Customer metrics remained strong, with product reviews averaging above four out of five and a net promoter score exceeding 50. Management attributed growth to consistent execution across assortment, brand strength and customer engagement rather than reliance on a single initiative.
Shares rose 4.32% to SEK 465.80, near a 52-week high of SEK 471.50, and are up nearly 49% year-to-date.
