Growth and focus on channel diversification
“Net sales for the third quarter amounted to MSEK 178 (174), up 3% compared with the year-earlier quarter. Currency-adjusted organic growth for the quarter amounted to 2%, and currency effects had a positive effect of 1 percentage point on sales performance.
Four of our five interior design brands grew during the quarter. Growth was driven primarily by direct-to-consumer sales – one of our strategic focus areas – which continued to perform strongly and offset continued weakness in traditional physical retail. Pappelina stood out in particular, more than doubling its sales in the direct-to-consumer (DTC) channel for the second consecutive quarter.
The gross margin continued to strengthen during the quarter, amounting to 62.4% (60.6), driven by a positive channel mix with a greater share of DTC sales, a positive product mix and improvements to efficiency in manufacturing.
EBITA for the quarter was MSEK 24 (24), corresponding to an operating margin of 13.2% (13.6). Earnings also include restructuring costs for the replacement of the Managing Director of Wall&decò.
Strengthening and developing our organisation has been central to our strategic direction and transformation. Over the past year, we have made several changes to ensure that the business has the right leadership, expertise and commercial focus. With strong brands, a stronger organisation and a clearer commercial focus, we have a solid platform for long-term, profitable growth.”
Johan Andgren, CEO, Embellence Group
Third quarter 2026
Significant events during the quarter
Significant events after the end of the quarter
Webcast
If you wish to attend the webcast on 3 November at 10:00 CET, please use the link below.
Q3 Report 2026
