Net sales amounted to SEK 875m in the quarter, representing a year-over-year decrease of 4.8%. The decline reflects deliberate commercial discipline in a market that continues to be characterised by competitive price pressure. That discipline has supported a significant strengthening of the gross margin, from 43.0% in Q1 2025 to 44.1% in Q1 2026, while the cost reduction programme launched at the beginning of the year is already delivering underlying improvement in operating profit. EBIT for the quarter was SEK 4m. Excluding one-off costs of SEK 22m, EBIT was SEK 25m, compared with SEK 28m in Q1 2025. Together these results give us confidence that we are on the right path.
Average order value has returned to normal levels following the previous quarter, with a continued positive trend into Q2. We also chose to move certain campaigns into Q2, which is expected to support growth in the coming quarter.
The Lyko Community continues to grow strongly. The launch of compensation for content has further strengthened engagement and makes the Community an increasingly clear differentiator in our dialogue with suppliers.
OUR OWN BRANDS TRULY GLOW
Our own brands continue to develop positively and are gradually building a stronger foundation for the business. Sales increased by 14%, reaching a total turnover of SEK 75m for the quarter and representing 8.5% of net sales. In January, we launched Gleeze, a high vibe, low spend makeup brand, our nineteenth own brand.
It is particularly pleasing to see that Waterclouds is our largest own brand and the third largest overall.
COST SAVINGS PROGRAMME ACCORDING TO PLAN
Execution of the cost reduction programme announced alongside our Q4 2025 results is progressing to plan. The programme is designed to deliver approximately SEK 100m in annual savings, excluding one-off restructuring costs. It is a disciplined response to a Q4 that came in below our profitability expectations, and it is reinforced by clearer guidelines on promotional depth, stricter return-on-investment requirements on marketing spend, and closer management of operational costs.
Internal engagement around the programme is strong, and the early impact is already visible in the underlying improvement in operating profit reported for the quarter.
MAJOR INVESTMENT PROJECTS COMPLETED
The new automated warehouse has been fully handed over to the line organisation and is performing at a stable and high level. The automation is now fully tuned, stock levels have normalised, and the ramp-up costs that weighed down last year's results are behind us.
With the warehouse complete, we do not foresee any further major investment projects requiring capital expenditure at the levels seen during our recent capacity build-up. We have begun to amortise our loans, putting the Group on a path to gradual deleveraging.
On the store side, we recently opened two new stores, in Charlottenberg and Kalmar, both of which have been very well received. Our focus from here is on execution, putting the assets we have built to work and continuing to build an even stronger Lyko.
NEW SEGMENT REPORTING STRUCTURE - CLARIFYING OUR PRIORITIES
We are updating our segment reporting structure to better reflect our sales mix and how we monitor operations. We will have one operational segment, Retail and it covers all key revenue generating activities in a single, unified structure across all markets, including both digital channels and our store network, as well as Lyko Professional. We will also share numbers for Group Functions & Other.
We have also chosen to temporarily slow down our European expansion in order to ensure the right conditions before taking the next step. Our long-term ambition remains, but for now the focus is on building an even stronger and more profitable foundation in the Nordics, within logistics, Community and own brands.
Q1 shows that the approach we set out at the start of the year is translating into results. Costs are more tightly managed, gross margins and stock levels have normalised, and the efficiency gains are becoming visible in our day-to-day operations.
I said we would simplify, optimize, and execute and that is exactly what we are doing. The work is far from finished, but the direction is clear, to continue with profitable growth.
Rickard Lyko, CEO and Founder
Stockholm
April
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 2026-04-28 07:00 CEST.
Image Attachments
Q1 2026
Rickard Lyko
