Strategic focus on direct-to-consumer starting to deliver results
The Group's currency-adjusted organic growth amounted to 3 percent during the quarter, driven by Boråstapeter, Pappelina as well as Artscape delivering strong direct-to-consumer sales growth. Sales to external brands from Borås Tapetfabrik also developed well in the quarter. The strong Swedish krona, particularly against the USD and GBP, had a negative impact on sales and earnings.
Cole & Son's sales declined as a result of our strategic decision to change the commercial distribution set-up to drive long-term growth with the partners we believe best represent the brand.
The gross margin strengthened thanks to an improved channel and product mix, with direct-to-consumer sales in particular driving the development. Operating costs increased slightly during the first quarter due to increased direct to consumer efforts and costs associated with the change of Managing Director in the Cole & Son brand. Operating cash flow also strengthened during the quarter, and we continue to have a strong financial position.
"Our strategic initiatives - direct-to-consumer, international expansion and hospitality - are delivering results, indicating that we are on the right track."
Johan Andgren, CEO Embellence Group
First quarter 2026
- Net sales amounted to MSEK 201 (202), down 1%.
- Organic growth amounted to 3% and exchange rate effects had an impact of -4%.
- The gross margin amounted to 62.8% (62.0).
- Operating profit (EBITA) amounted to MSEK 28 (32).
- The EBITA margin amounted to 14.0% (16.0).
- Net profit for the period amounted to MSEK 18 (24) and earnings per share before and after dilution to SEK 0.75 (1.00).
- Operating cash flow amounted to MSEK 14 (8).
Significant events during the quarter
- A new Managing Director for Cole & Son has been appointed.
Significant events after the end of the quarter
- No significant events to report.
For further information, please contact:
Karin Lidén
CFO Embellence Group
Telefon: +46 704 293057
Email: ir@embellencegroup.com
About Embellence Group
Embellence Group, founded in 1905, is a leading European company in interior decoration with a focus on premium brands in the wallpaper segment, complimented by other color and pattern driven interior decoration such as textiles and rugs. Our products are sold in more than 100 markets around the world.
At Embellence Group, we believe that environments affect our thoughts and feelings, whether we are at home, at work or on the go. Our ambition is to impact our surroundings through the power of the unique design that our brands Boråstapeter, Cole & Son, Wall&decò, Pappelina and Artscape offer.
Embellence Group is listed on Nasdaq First North Premier Growth Market. FNCA Sweden AB is appointed Certified Adviser, info@fnca.se.
This information is information that Embellence Group AB (publ) 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 2026-05-05 08:00 CEST.
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Embellence Q1 2026 ENG
