Swedish home-improvement retailer Clas Ohlson AB reported a 16% year-over-year increase in net sales for the first quarter of its 2026/27 fiscal year, reaching approximately 4.1 billion Swedish kronor. Organic growth contributed 11 percentage points, while acquisitions added 3 points and currency effects contributed 2 points. Like-for-like sales rose 9%, with store expansion contributing an additional 1%. Operating profit climbed 40% to 339 million kronor, maintaining the company’s 12% operating margin target.
Gross margin expanded by 1.8 percentage points to 47.5%, while earnings per share surged 45% to 4.75 kronor. Operating cash flow increased 42% to 663 million kronor, and free cash flow totaled 363 million kronor. Return on capital employed reached 34.9%, exceeding the long-term target of 30%, while return on equity hit a record 42%. Online sales grew 18% organically and 35% including acquisitions, representing 22% of total revenue.
CEO Kristofer Tonström highlighted the company’s balanced growth strategy, stating that profitability improvements stem from consistent execution across assortment, brand, and customer engagement rather than a single initiative. CFO Pernilla Walfridsson noted that currency hedging had shifted the timing of foreign exchange impacts rather than eliminating underlying exposure, with a 50 million kronor negative effect on gross margin year-over-year.
The retailer’s store network expanded to 250 locations, up nine from the prior-year period. Home market organic growth in the quarter reached 11% in Sweden, 10% in Norway, and 9% in Finland. August performance showed an 8% organic growth rate, with total sales exceeding 1.1 billion kronor. Online sales accounted for 22% of revenue, while the Net Promoter Score improved to 56.
Clas Ohlson’s share price rose 5.63% in premarket trading to 469.20 Swedish kronor, extending its year-to-date gain to nearly 49%. The stock is trading near its 52-week high of 471.50 kronor, up from a low of 282.40 kronor. The company reaffirmed its three-year framework targets, including 5% annual organic sales growth, a 12% operating margin, and a 30% return on capital employed.
