Embellence Q2 2026 ENG
Embellence Q2 2026 ENG Picture
Embellence Group Interim Report for the Second Quarter 2026
Continued focus on channel diversification
“Sales decreased during the second quarter to MSEK 181, mainly due to weak performance in traditional retail across several of our brands’ home markets, as well as a challenging comparison period for Artscape related to a new launch in the previous year.
At the same time, our strategic initiatives to improve our channel mix over the long term through a larger share of direct-to-consumer sales, hospitality and international market expansion developed positively. Direct-to-consumer sales continued to grow, and Boråstapeter’s new e-commerce platform was launched during the quarter. The other brands, which had already updated their respective platforms, accelerated their growth in this area, and Pappelina stood out in particular with growth of 130 percent in direct-to-consumer sales during the quarter.
Although we are seeing clear progress in our strategic growth areas, sales through these channels still account for a relatively small share of the Group’s total revenue and were therefore not able to fully compensate during the quarter for the weaker development in traditional retail.
The gross margin strengthened to 62.3 percent, driven by a favorable channel mix with a higher share of direct-to-consumer sales and investments in new premium products. 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 showing results, and I am confident that we are on the right path towards our long-term financial targets.”
Johan Andgren, CEO, Embellence Group
Second quarter 2026
- Net sales amounted to MSEK 181 (193), down -6%. Organic growth amounted to –5% and exchange rate effects had an impact of –1%.
- The gross margin amounted to 62.3% (61.9).
- Operating profit (EBITA) amounted to MSEK 23 (26).
- The EBITA margin amounted to 12.6% (13.5).
- Net profit for the period amounted to MSEK 14 (15) and earnings per share before and after dilution to SEK 0.61 (0.65).
- Operating cash flow amounted to MSEK 21 (16).
Significant events during the quarter
- No significant events to report.
Significant events after the end of the quarter
- No significant events to report.