Trading update for the fourth quarter of 2025

Preliminary net sales amounted to SEK 1,287 million in the fourth quarter, corresponding to year-on-year growth of 17%, while full-year 2025 net sales totalled SEK 3,963 million, representing an increase of 11% compared with the previous year. More than 350,000 new customers were acquired during the quarter, primarily in Sweden and Norway.
 
The quarter was, however, characterised by intense price competition, increased promotional activity and continued consumer trading-down behaviour. The extended campaign period, combined with higher operational costs during the ramp-up phase of the new automated warehouse ahead of the peak season, had a negative impact on profitability.
 
As a result, the preliminary gross margin for the fourth quarter declined year-on-year to 39.6%, with EBIT reaching SEK 16.4 million, corresponding to an EBIT margin of 1.3%. For the full year 2025, the preliminary gross margin is 41.9%, with EBIT of SEK 78 million and an EBIT margin of 2.0%.
 
The new automated warehouse performed very well operationally and enabled Lyko to maintain a high-quality customer experience during peak trading periods, while handling significantly increased order volumes. However, costs during the initial ramp-up phase were higher than anticipated.
 
In light of the lower-than-expected earnings outcome, Lyko will implement a cost-reduction programme aimed at strengthening profitability and safeguarding the Group’s long-term competitive position. The programme is expected to generate annual cost savings of approximately SEK [100] million, excluding one-off restructuring costs related to staff
reductions, and to affect approximately [70] full-time equivalent positions. Further details regarding the programme will be communicated in connection with the publication of the full year report.
 
“Profitable growth is our top priority at Lyko. During the strategically important fourth quarter, we gained considerable market share and welcomed a large number of new customers, all while delivering an outstanding customer experience. At the same time, we failed to deliver results in line with our expectations. We are therefore taking decisive actions to reduce our cost base, our complexity and improve profitability, while continuing to invest in our brand, customer offering and long-term growth,” says Rickard Lyko, Founder and CEO of Lyko.
 
Lyko Group AB’s Full-year report for 2025 will be published on 13 February 2026 at 07:00 CET, in accordance with the company’s financial calendar.
 
The financial information in this trading update is preliminary, has not been subject to audit, and may be adjusted prior to the publication of the full-year report.