The fourth quarter delivered strong growth, with net sales increasing 17% to SEK 1,278m. For the full year, we reached SEK 3,963m, up 11% compared with 2024. We welcomed more than 350,000 new customers during the quarter, and our Norwegian market surpassed SEK 1 billion in annual sales. These results reflect the strength of our customer proposition and the investments we have made in recent years.
However, the quarter did not meet our profitability expectations. I want to be direct about that, and about how we are going to address it. The fourth quarter was characterized by intense promotional activity across the market. We made a deliberate choice to strengthen our market position and invest in customer acquisition, supported by the capacity of our new automated warehouse. That decision delivered on growth but came at a higher margin cost than we anticipated, further impacted by continued consumer caution.
WHAT WE CONTROL - AND WHAT WE ARE CHANGING
While market conditions were challenging, several of the factors that impacted our results were within our control. We are now taking concrete action.
We are implementing a cost reduction program that will deliver approximately SEK 100m in annual savings (excluding one-off restructuring costs) and affect around 70 FTEs, once fully in effect. This is a disciplined response to a quarter that underperformed, built on tangible opportunities to improve productivity. The investments we have made in infrastructure, technology, and organization over the past years now allow us to operate more efficiently, and we intend to capture that potential.
We are also strengthening our commercial discipline, with clearer guidelines on promotional depth, stricter return-on-investment requirements on marketing spend, and closer management of operational costs.
THE NEW WAREHOUSE - SHORT-TERM COSTS, LONG-TERM GAINS
During the quarter, we ramped-up our new automated warehouse to new levels. This resulted in higher-than-expected costs related to onboarding and training, partial shipments during the transition period, and increased packaging and freight expenses. During the quarter onetime costs associated with new facility where SEK 4,2m (FY 15,8) and the total one-offs costs summed up to SEK 6,9m (FY 19,9).
Importantly, the investment is already delivering results. With the new automation we significantly reduces how many times we touch the products compared to our previous setup, and the new warehouse handled the peak season volumes while maintaining an excellent customer experience. This infrastructure gives us a structural cost advantage that will benefit us for years to come.
A STRONG POSITION WITH CUSTOMERS AND SUPPLIERS
Our growth in a challenging market underscores the strength of our position. Brand awareness and customer satisfaction reached all-time highs during the quarter. Engagement in the Lyko app continues to grow, with our Community generating more than 21 million visits in November alone.
Our suppliers recognize that Lyko is one of the few players demonstrating market share gains in the Nordic beauty market. This opens doors for launches, partnerships, and deeper collaboration. We see increasing interest from brands that value partners who build their brands, not just move their products. This is where Lyko excels.
LOOKING AHEAD - A CLEAR PLAN FOR 2026
We do not anticipate any major investment projects requiring capital expenditure at the levels seen during our recent capacity build-up. Our focus now is on execution, simplifying, optimizing, and fully leveraging the assets we have built. Many of these are AI-driven, enabling continued efficiency gains.
To improve efficiency, we have closed our local offices in the Netherlands and Germany and will now manage these markets centrally from our Nordic headquarters. This allows us to maintain our presence and continue developing these markets while reducing overhead.
Entering 2026, we have a clear plan to restore profitability while continuing to strengthen our market position. Looking at January, we are seeing a normalization of both average order value and gross margins, which are tracking in line with prior year levels.
We combine e-commerce leadership, strong supplier relationships, best-in-class logistics, and a store concept that continues to prove its relevance.
The task ahead is clear - translate our strong customer position into sustainable, profitable growth. We know what needs to be done, and we are doing it.
For more information, please contact
Rickard Lyko, CEO, Lyko
+46 (0) 76 026 74 28, rickard.lyko@lyko.com
Tom Thörnblom, Head of Communication & Investor Relations, Lyko
+46 72 555 01 90, tom.thornblom@lyko.com
This information is information that Lyko Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-13 07:00 CET.
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Lyko Group Q4 2025
Rickard Lyko
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