Swedish apparel and sportswear group New Wave Group AB reported net sales of SEK 2.6 billion for the second quarter of 2026, a 14.6% increase from the same period a year earlier. The company’s organic growth of 2.2% lagged management’s guidance of 4% to 5%, reflecting softer underlying demand despite solid top-line performance.
Operating profit for the quarter totaled SEK 295 million, with an operating margin of 11.3%. Gross margin remained stable in the 48-49% range, supported by pricing discipline that prioritized margin preservation over volume-driven discounts. Tariff costs related to sold goods amounted to approximately SEK 65 million, according to management.
For the first half of 2026, net sales rose 10.2% year-over-year to SEK 4.9 billion. The company’s stock last traded near the lower end of its 52-week range at $93, with a market capitalization of $1.29 billion and a P/E ratio of 15.77. The dividend yield stands at 3.23%, while the stock has declined 17% year-to-date.
CEO Torsten Piltz emphasized the group’s commitment to maintaining gross margins, stating that pricing discipline would remain a priority. Management noted that profitability improvements are expected to materialize once the current investment phase concludes, excluding the impact of acquisitions.
Regional performance varied, with North America, Sweden, Benelux, and the Nordic region posting gains. Norway outperformed due to national team sponsorships, while the UK market remained challenging. Retail sales grew 5%, driven by Craft and Clique, which benefited from unexpectedly strong demand for Swedish merchandise following late qualifications for football tournaments.
The company’s corporate sector margins were weighed down by Cotton Classic, which operates entirely in the corporate channel. In contrast, Gifts and Home Furnishings segments reported positive margins. The trading channel experienced significant volatility, reflecting large but infrequent order swings.
Strategic initiatives included the near-completion of a Dallas distribution center, set to begin operations on October 1, 2025. The facility, with a capacity of 10 million units, is expected to reach breakeven within three to six months and address service gaps in the Southeast and South-Central U.S. A SEK 10 million investment was recorded in the first half for this project.
New Wave Group also opened a SEK 250 million production facility in Poland for its Toppoint brand in May, featuring 25 printing techniques and 24-hour product availability. The Tenson brand is set to launch in the U.S. through Cutter & Buck in fall 2026, with meaningful sales anticipated.
The company employs 2,877 people across 28 countries and three business segments, with Sweden now accounting for 20% of total sales following international expansion and the Cotton Classic acquisition.
