Q2 2026 Pierce Group AB (publ) Earnings Call

August 21, 2026

Göran Dahlin: In Q4 2026. I am Göran Dahlin, CEO of Pierce Group, and I am joined today by Fredrik Kjellgren, our CFO. Thank you for joining us. Today we will begin with a brief recap of who we are and where we stand in the European market, followed by a summary of our financial performance in the quarter. Then we will provide updates on our ongoing transformation and strategic initiatives before we look ahead to our outlook and growth drivers for the coming quarters. We will close with a Q&A session at the end. Pierce Group, we are Europe's number one online destination for motorcycle gear and equipment. We were founded in 2008, and we are the leading European e-commerce platform for motorcycle and snowmobile gear, parts, and accessories. We operate the online stores 24MX, XLMOTO, and Sledstore.

Speaker #1: Work out 2026. I'm Joran Dahlin, CEO of Pierce Group, and I'm joined today by Fredrik Kjellgren, our CFO. And thank you for joining us.

Speaker #2: Your line is muted.

Speaker #3: Call recording is on.

Speaker #4: Welcome to the Pierce Group Q2 2026 report presentation. During the Q&A session, participants are able to ask questions by dialing #Q5 on their telephone keypad.

Operator 2: Welcome to Pierce Group Q2 Report 2026 presentation. During the Q&A session, participants are able to ask questions by dialing #5 on their telephone keypad. Now, I will hand the conference over to the speaker, CEO Göran Dahlin and CFO Fredrik Kjellgren. Please go ahead.

Speaker #1: So, today we will begin with a brief recap of who we are and where we stand in the European market, followed by a summary of our financial performance in the quarter.

Speaker #4: Now, I will hand the conference over to the speakers, CEO Joran Dahlin and CFO Fredrik Kjellgren. Please go ahead.

Speaker #1: Then we will provide updates on our ongoing transformation and strategic initiatives, before we look ahead to our outlook and growth drivers for the coming quarters.

Speaker #5: Good morning, everyone, and welcome to Pierce Group's presentation of our results for the second quarter of 2026. I'm Joran Dahlin, CEO of Pierce Group, and I'm joined today by Fredrik Kjellgren, our CFO.

Göran Dahlin: Good morning, everyone, and welcome to Pierce Group's presentation of our results for the second quarter of 2026. I'm Göran Dahlin, CEO of Pierce Group, and I'm joined today by Fredrik Kjellgren, our CFO. Thank you for joining us. Today we will begin with a brief recap of who we are and where we stand in the European market, followed by a summary of our financial performance in the quarter. Then we will provide updates on our ongoing transformation and strategic initiatives before we look ahead to our outlook and growth drivers for the coming quarters. We'll close with a Q&A session at the end. Pierce Group, we are Europe's number one online destination for motorcycle gear and equipment. We were founded in 2008, and we are the leading European e-commerce platform for motorcycle and snowmobile gear, parts, and accessories. We operate the online stores 24MX, XLMOTO, and Sledstore.

Speaker #1: We'll close with a Q&A session at the end. Pierce Group, we are Europe's number 1 online destination for motorcycle gear and equipment. We were founded in 2008 and we are the leading European e-commerce platform for motorcycle and snowmobile gear parts and accessories.

Speaker #5: Thank you for joining us. Today, we will begin with a brief recap of who we are and where we stand in the European market, followed by a summary of our financial performance in the quarter.

Speaker #1: We operate the online stores 24MX, ExxonMotor, and Sledge Store. 60% of our turnover is done with off-road riders, 35% with on-road riders, and 5% is with snowmobile riders.

Göran Dahlin: 60% of our turnover is done with off-road riders, 35% with on-road riders, and 5% is with snowmobile riders. We today operate locally adapted websites in 29 European countries. We have the broadest and most differentiated product assortment in the market, including one of the highest shares for private brands. We offer more than 200,000 articles to more than 1 million customers across Europe. We turn over SEK 1.8 billion and show 3.3% EBIT last 12 months. We have approximately 295 employees, whereof 157 white collars spread over Stockholm, Szczecin, Poland, and Barcelona. We are listed on Nasdaq since 2021. As I said, we have the broadest and most differentiated product assortment in the market, including one of the highest shares of private brands, and we offer more than 200,000 articles.

Speaker #5: Then we will provide updates on our ongoing transformation and strategic initiatives, before we look ahead to our outlook and growth drivers for the coming quarters.

Speaker #1: We today operate locally adapted websites in 29 European countries. We have the broadest and most differentiated product assortment in the market, including one of the highest shares for private brands.

Speaker #5: We'll close with a Q&A session at the end. Pierce Group, we are Europe's number one online destination for motorcycle gear and equipment. We were founded in 2008, and we are the leading European e-commerce platform for motorcycle and snowmobile gear, parts, and accessories.

Speaker #1: We offer more than 200,000 articles to more than 1 million customers across Europe. We turn over 1.8 billion SEK and show 3.3% EBIT last 12 months.

Speaker #5: We operate the online stores 24MX, XLMOTO, and Sledstore. Sixty percent of our turnover is generated with off-road riders, thirty-five percent with on-road riders, and five percent with snowmobile riders.

Speaker #1: We have approximately 295 employees, whereof 157 white collars, spread over Stockholm, Stettin, Poland, and Barcelona. And we're listed on Nasdaq since 2021. As I said, we have the broadest and most differentiated product assortment in the market, including one of the highest shares for private brands, and we offer more than 200,000 articles.

Göran Dahlin: 60% of our turnover is done with off-road riders, 35% with on-road riders, and 5% is with snowmobile riders. We today operate locally adapted websites in 29 European countries. We have the broadest and most differentiated product assortment in the market, including one of the highest shares of private brands. We offer more than 200,000 articles to more than 1 million customers across Europe. We turn over SEK 1.8 billion and show 3.3% EBIT last 12 months. We have approximately 295 employees, whereof 157 white collars, spread over Stockholm, Szczecin, Poland, and Barcelona, and we're listed on Nasdaq since 2021. As I said, we have the broadest and most differentiated product assortment in the market, including one of the highest shares of private brands, and we offer more than 200,000 articles.

Speaker #5: We today operate locally adapted websites in 29 European countries. We have the broadest and most differentiated product assortment in the market, including one of the highest shares of private brands.

Speaker #5: We offer more than 200,000 articles to more than one million customers across Europe. We turn over SEK 1.8 billion and show 3.3% EBIT over the last 12 months.

Speaker #1: We started in Sweden, but we're now the only true pan-European company in the industry. We own over 70% of our turnover being done outside the Nordics.

Göran Dahlin: We started in Sweden, but we are now the only true Pan-European company in the industry, with over 70% of our turnover being done outside the Nordics. E-commerce penetration varies across Europe and remains higher in the Nordics and parts of Western Europe, while still lower in southern and eastern regions, creating room for continued online shift. Within our category, e-commerce penetration is higher in off-road and lower in on-road, where the market is larger but still more under-penetrated online. Overall, the niche is well suited for e-commerce, where we can offer a superior selection and availability compared to physical stores. The rider base continues to grow and electrification, we believe, will further broaden the customer base. Our logistics setup is quite unique for the industry. Our warehouse is located in Northwest Poland and is 37,000 square meters.

Speaker #5: We have approximately 295 employees, whereof 157 white-collars. Spread over Stockholm, Stettin, Poland, and Barcelona. And we're listed on Nasdaq since 2021. As I said, we have the broadest and most differentiated product assortment in the market, including one of the highest shares of private brands, and we offer more than 200,000 articles.

Speaker #1: E-commerce penetration varies across Europe and remains higher in the Nordics and part of Western Europe, while still lower in Southern and Eastern regions, creating room for continued online shift.

Speaker #1: Within our category, e-commerce penetration is higher in off-road and lower in on-road. Where the market is larger, but still more under-penetrated online. Overall, the niche is well suited for e-commerce, where we can offer a superior selection and availability compared to physical stores.

Speaker #5: We started in Sweden, but we're now the only true pan-European company in the industry. We have over 70% of our turnover coming from outside the Nordics.

Göran Dahlin: We started in Sweden, but we are now the only true Pan-European company in the industry, with over 70% of our turnover being done outside the Nordics. E-commerce penetration varies across Europe and remains higher in the Nordics and parts of Western Europe, while still lower in southern and eastern regions, creating room for continued online shifts. Within our category, e-commerce penetration is higher in off-road and lower in on-road, where the market is larger but still more under-penetrated online. Overall, the niche is well-suited for e-commerce, where we can offer a superior selection and availability compared to physical stores. The rider base continues to grow, and electrification, we believe, will further broaden the customer base. Our logistics setup is quite unique for the industry. Our warehouse is located in northwest Poland and is 37,000 square meters. We stock there more than 60,000 articles, and we have a deep buffer capacity.

Speaker #1: The rider base continues to grow, and electrification we believe will further broaden the customer base. Our logistics setup is quite unique for the industry.

Speaker #5: E-commerce penetration varies across Europe and remains higher in the Nordics and parts of Western Europe, while still lower in southern and eastern regions, creating room for continued online shift.

Speaker #1: Our warehouse is located in northwest Poland and is 37,000 square meters. We stock there more than 60,000 articles, and we have a deep buffer capacity.

Speaker #5: Within our category, e-commerce penetration is higher in off-road and lower in on-road, where the market is larger but still more underpenetrated online. Overall, the niche is well suited for e-commerce, where we can offer a superior selection and availability compared to physical stores.

Göran Dahlin: We stock there more than 60,000 articles, and we have a deep buffer capacity. This means that we can serve our customers with thousands of orders per day that we pick and pack within 24 hours. We also have a very efficient setup with Pierce dedicated long-distance haulers that both delivers to national injection points for last mileage, as well as pick up refill and cross-dock orders from our suppliers. The competitive landscape is fragmented and consists of five main segments. I will not go through the segments now, but I will say that we are one of the largest retailers in our industry. We are the only Pan-European specialist with our local sites, local language, local payment options, local customer service, and local delivery partners across our markets.

Speaker #1: This means that we can serve our customers with thousands of orders per day that we pick and pack within 24 hours. We also have a very efficient setup with Pierce dedicated long-distance haulers that both deliver to national injection points for last mileage, as well as pickup, refill, and cross-dock orders from our suppliers.

Göran Dahlin: Overall, the niche is well-suited for e-commerce, where we can offer a superior selection and availability compared to physical stores. The rider base continues to grow, and electrification, we believe, will further broaden the customer base. Our logistics setup is quite unique for the industry. Our warehouse is located in northwest Poland and is 37,000 square meters. We stock there more than 60,000 articles, and we have a deep buffer capacity.

Speaker #5: The rider base continues to grow, and electrification, we believe, will further broaden the customer base. Our logistics setup is quite unique for the industry.

Speaker #1: The competitive landscape is fragmented and consists of 5 main segments. I will not go through the segments now, but I will say that we are one of the largest retailers in our industry, and pan-European specialist with our local sites, with local language, local payment options, local customer service, and local delivery partners across our markets.

Speaker #5: Our warehouse is located in northwest Poland and is 37,000 square meters. We stock more than 60,000 articles there, and we have a deep buffer capacity.

Speaker #5: This means that we can serve our customers with thousands of orders per day that we pick and pack within 24 hours. We also have a very efficient setup with Pierce-dedicated long-distance haulers that both deliver to national injection points for last-mile delivery, as well as pick up, refill, and cross-dock orders from our suppliers.

Göran Dahlin: This means that we can serve our customers with thousands of orders per day that we pick and pack within 24 hours. We also have a very efficient setup with Pierce dedicated long-distance haulers that both deliver to national injection points for last mileage, as well as pick up refill and cross-dock orders from our suppliers. The competitive landscape is fragmented and consists of five main segments. I will not go through the segments now, but I will say that we are one of the largest retailers in our industry. We are the only Pan-European specialist with our local sites with local language, local payment options, local customer service, and local delivery partners across our markets. Most other players are strong local champions focused on their home markets, often primarily on-road, and generally with a relatively low private brand share. Several are financially owned, which could facilitate future consolidation.

Speaker #1: Most other players are strong local champions focused on their home markets, often primarily on-road. And generally, with a relatively low private brand share. Several of our financially owned, which could facilitate future consolidation.

Göran Dahlin: Most other players are strong local champions focused on their home markets, often primarily on road, and generally with a relatively low private brand share. Several are financially owned, which could facilitate future consolidation. Overall, the market structure creates a clear opportunity to build a significantly larger Pan-European category leader with the scale to stock a wider assortment, offer superior availability and delivery times, strengthen private brands, improve purchasing power with key suppliers, and unlock meaningful back office synergies. Turning to the Q2 results. In Q2, we continued to improve profitability despite the temporary operational challenges related to the introduction of our new Warehouse Management System. The Q2 adjusted EBIT came in at 34 million, compared to 32 million last year. This corresponds an adjusted EBIT margin of 6.4%, up from 6.2%.

Speaker #5: The competitive landscape is fragmented and consists of five main segments. I will not go through the segments now, but I would say that we are one of the largest retailers in our industry.

Speaker #1: Overall, the market structure creates a clear opportunity to build a significantly larger pan-European category leader, with a scale to stock a wider assortment, offer superior availability and delivery times, strengthen private brands, improve purchasing power with key suppliers, and unlock meaningful back-office synergies.

Speaker #5: And we are the only pan-European specialist with our local sites, local language, local payment options, local customer service, and local delivery partners across our markets.

Speaker #1: So, turning to the second quarter continue to improve profitability. Despite a temporary operational challenge in related to the introduction of our new warehouse management system.

Speaker #5: Most other players are strong local champions focused on their home markets, often primarily on-road, and generally with a relatively low private brand share. Several are financially owned, which could facilitate future consolidation.

Speaker #5: Overall, the market structure creates a clear opportunity to build a significantly larger pan-European category leader, with the scale to stock a wider assortment, offer superior availability and delivery times, strengthen private brands, improve purchasing power with key suppliers, and unlock meaningful back-office synergies.

Göran Dahlin: Overall, the market structure creates a clear opportunity to build a significantly larger Pan-European category leader with the scale to stock a wider assortment, offer superior availability and delivery times, strengthen private brands, improve purchasing power with key suppliers, and unlock meaningful back office synergies. Turning to the second quarter results. In Q2, we continued to improve profitability despite the temporary operational challenges related to the introduction of our new Warehouse Management System. The Q2 adjusted EBIT came in at SEK 34 million compared to SEK 32 million last year. This corresponds to an adjusted EBIT margin of 6.4%, up from 6.2%. This was achieved while still absorbing approximately SEK 6 million of transformation costs during the quarter. Looking at the last 12 months, adjusted EBIT has now reached SEK 61 million, corresponding to a margin of 3.3%.

Speaker #1: The Q2 EBIT came in adjusted EBIT came in at 32 million compared to 32 million last year. This corresponds to an adjusted EBIT margin of 6.4%, up from 6.2%.

Speaker #1: This was achieved while still absorbing approximately 6 million SEK of transformation costs during the quarter. Looking at the last 12 months, adjusted EBIT has now reached 61 million, corresponding to a margin of 3.3%.

Göran Dahlin: This was achieved while still absorbing approximately 6 million SEK of transformation cost during the quarter. Looking at the last 12 months, adjusted EBIT has now reached 61 million, corresponding to a margin of 3.3%. We continue to move step by step in the right direction towards our medium to long-term target of an adjusted EBIT margin of 5% to 8%. On the top line, we continue to grow despite the operational impact of the Warehouse Management System transition. Q2 sales increased by 3% year over year to an all-time high of 537 million. In local currencies, growth was 2%. At the same time, the WMS implementation temporarily affected both sales and cost in a quite significant way. Ahead of the launch, lower campaign activity was worse because we needed to give the warehouse room to train the operators.

Speaker #5: So turning to the second quarter results. In Q2, we continued to improve profitability, despite temporary operational challenges related to the introduction of our new warehouse management system.

Speaker #1: So we continue to move step by step in the right direction towards our medium to long-term target of an adjusted EBIT margin of 5 to 8%.

Speaker #5: The Q2 EBIT came in at adjusted EBIT came in at 32 34 million compared to 32 million last year. This corresponds to an adjusted EBIT margin of 6.4%, up from 6.2%.

Speaker #1: On the top line, we continue to grow despite the operational impact of the warehouse management transition. Q2 sales increased by 3 years, 3% year over year, to an all-time high of 537 million in local currencies, growth was 2%.

Speaker #5: This was achieved while still absorbing approximately SEK 6 million of transformation cost during the quarter. Looking at the last 12 months, adjusted EBIT has now reached SEK 61 million, corresponding to a margin of 3.3%.

Speaker #1: At the same time, the VMS implementation temporarily affected both sales and cost, all in a quite significant way. Ahead of the launch, lower campaign activity was worst because we needed to give the warehouse room to train the operators.

Speaker #5: So we continue to move step by step in the right direction towards our medium- to long-term target of an adjusted EBIT margin of 5% to 8%.

Göran Dahlin: We continue to move step by step in the right direction towards our medium to long-term target of an adjusted EBIT margin of 5% to 8%. On the top line, we continue to grow despite the operational impact of the Warehouse Management transition. Q2 sales increased by 3% year over year to an all-time high of SEK 537 million in local currencies. Growth was 2%. At the same time, the WMS implementation temporarily affected both sales and costs. All in a quite significant way. Ahead of the launch, lower campaign activity was worse because we needed to give the warehouse room to train the operators. During the transition, fulfillment was paused, and post the transition, we had a lower warehouse productivity and during the ramp-up period. That created a significant backlog, both in outbound but also in inbound.

Speaker #5: On the top line, we continued to grow despite the operational impact of the warehouse management transition. Q2 sales increased by 3%, year-over-year, to an all-time high of €537 million. In local currencies, growth was 2%.

Speaker #1: And during the transition, fulfillment was paused, and post-transition we had a lower warehouse productivity during the ramp-up period. And that created a significant backlog.

Göran Dahlin: During the transition, fulfillment was paused, and post the transition, we had a lower warehouse productivity during the ramp-up period. That created a significant backlog, both in outbound but also in inbound. Moving to margins, profit after variable cost came in at 2 million SEK lower than last year with a significant negative impact of extra freight cost related to our WMS transition. At the same time, improved performance marketing efficiency helped offset part of this impact. Our focus remains to maximize profit after variable cost in absolute terms as our business model is extremely scalable. Overhead costs amounted to 75 million, broadly unchanged from 74 million last year, while decreasing slightly as a share of sales to 14%. Q2 included approximately 6 million of transformation costs, primarily related to external consultants and temporary parallel systems during the transition to our new technology platform.

Speaker #1: Both in outbound, but also in inbound. Moving to margins, profit after variable cost came in at 2 million SEK lower than last year, with a significant negative impact of extra freight costs related to our VMS transition.

Speaker #5: At the same time, the VMS implementation temporarily affected both sales and costs, all in a quite significant way. Ahead of the launch, lower campaign activity was worse because we needed to give the warehouse room to train the operators.

Speaker #1: At the same time, improved performance marketing efficiency helped offset part of this impact. So our focus remains to maximize profit after variable cost in absolute terms, as our business model is extremely scalable.

Speaker #5: And during the transition, fulfillment was paused, and after the transition, we had lower warehouse productivity during the ramp-up period. That created a significant backlog.

Speaker #1: Overhead costs amounted to 75 million, broadly unchanged from 74 million last year, while decreasing slightly as the share of sales to 14%. Q2 included approximately 6 million of transformation costs, primarily related to external consultants and temporary parallel systems during the transition to our new technology platform.

Speaker #5: Both in outbound, but also in inbound. Moving to margins, profit after variable cost came in at SEK 2 million lower than last year, with a significant negative impact from high extra freight costs related to our VMS transition.

Göran Dahlin: Moving to margins, profit after variable cost came in at SEK 2 million lower than last year with a significant negative impact of extra freight cost related to our WMS transition. At the same time, improved performance marketing efficiency helped offset part of this impact. Our focus remains to maximize profit after variable cost in absolute terms as our business model is extremely scalable. Overhead costs amounted to SEK 75 million, broadly unchanged from SEK 74 million last year, while decreasing slightly as a share of sales to 14%. Q2 included approximately SEK 6 million of transformation costs, primarily related to external consultants and temporary parallel systems during the transition to our new technology platform. We expect these transition costs to gradually decline over the coming quarters as we stabilize the WMS and continue the rollout of the new commerce platform.

Speaker #5: At the same time, improved performance marketing efficiency helped offset part of this impact. So our focus remains to maximize profit after variable cost in absolute terms, as our business model is extremely scalable.

Speaker #1: We expect these transition costs to gradually decline over the coming quarters, as we stabilize the WMS and continue the rollout of the new e-commerce platform.

Göran Dahlin: We expect these transition costs to gradually decline over the coming quarters as we stabilize the WMS and continue the rollout of the new commerce platform. As previously communicated, we continue to expect Pierce 2.0 to deliver further annual EBIT improvement of approximately 20 to 30 million as the transformation cost disappears. Part of this has already been realized through lower depreciation and amortization. Finally, we have a very strong financial position with 390 million in cash, and in addition, we have 150 million credit facility with no cash amounts drawn at the end of the quarter. Inventory amounted to 505 million, down slightly from 522 million last year, and we believe the inventory levels are well aligned with demand. Overall, this strong financial position gives us significant strategic flexibility. Moving into some of our KPIs. First, the private brand share.

Speaker #1: As previously communicated, we continue to expect Pierce 2.0 to deliver further annual EBIT improvement of approximately 20 to 30 million as the transformation costs disappear.

Speaker #5: Overhead costs amounted to $75 million, broadly unchanged from $74 million last year, while decreasing slightly as a share of sales to 14%. Q2 included approximately $6 million of transformation costs, primarily related to external consultants and temporarily parallel systems during the transition to our new technology platform.

Speaker #1: Part of this has already been realized through lower depreciation and amortization. Finally, we have a very 319 million in cash, and in addition, we have 150 million credit facility with no cash amounts drawn at the end of the quarter.

Speaker #5: We expect these transition costs to gradually decline over the coming quarters as we stabilize the WMS and continue the rollout of the new e-commerce platform.

Speaker #5: As previously communicated, we continue to expect Pierce 2.0 to deliver further annual EBIT improvement of approximately 20 to 30 million, as the transformation cost disappears.

Speaker #1: Inventory amounted to 505 million, down slightly from 522 million last year, and we believe inventory levels are well aligned with demand. Overall, this strong financial position gives us significant strategic flexibility.

Göran Dahlin: As previously communicated, we continue to expect Pierce 2.0 to deliver a further annual EBIT improvement of approximately SEK 20 to 30 million as the transformation cost disappears. Part of this has already been realized through lower depreciation and amortization. Finally, we have a very strong financial position with SEK 390 million in cash, and in addition, we have SEK 150 million credit facility with no cash amounts drawn at the end of the quarter. Inventory amounted to SEK 505 million, down slightly from SEK 522 million last year, and we believe inventory levels are well-aligned with demand. Overall, this strong financial position gives us significant strategic flexibility. Moving into some of our KPIs. First, the private brand share. Over the last 12 months, the private brand share was 35%, unchanged from the previous quarter compared to 37% a year ago.

Speaker #5: Part of this has already been realized through lower depreciation and amortization. Finally, we have a very strong financial position with SEK 319 million in cash.

Speaker #1: Moving into some of our KPIs. First, the private brand share. Over the last 12 months, the private brand share was 35%, unchanged from previous quarter and compared to 37% a year ago.

Göran Dahlin: Over the last 12 months, the private brand share was 35%, unchanged from previous quarter compared to 37% a year ago. The decline over the years mainly mix-driven, reflecting a very strong growth in external brands, as well as somewhat weaker development than targeted in the private brands. In absolute terms, private brand sales was still strong at 638 million SEK over the last 12 months, and we continue to invest strategically in private label while increasingly focusing our efforts on the brands and categories where we see the strongest potential. Our ambition absolutely remains to accelerate growth, but we are realistic about the time required to build successful and new products and categories. At the same time, we continue to unlock significant growth within our external brands portfolio by improving availability and assortment depth. This remains an important growth driver for us. Customer satisfaction, this remains a clear strength.

Speaker #5: In addition, we have a SEK 150 million credit facility, with no cash amounts drawn at the end of the quarter. Inventory amounted to SEK 505 million, down slightly from SEK 522 million last year.

Speaker #1: The decline over the years mainly mixed-driven, reflecting a very strong growth in external brands as well as somewhat weaker development than targeted in the private brands.

Speaker #5: And we believe inventory levels are well aligned with demand. Overall, this strong financial position gives us significant strategic flexibility. Moving into some of our KPIs.

Speaker #1: In absolute terms, private brand sales was still strong at 638 million. Over the last 12 months, and we continue to invest strategically in private label, while increasingly focusing our efforts on the brands and categories where we see the strongest potential.

Speaker #5: First, the private brand share. Over the last 12 months, the private brand share was 35%, unchanged from the previous quarter and compared to 37% a year ago.

Speaker #1: Our ambition absolutely remains to accelerate growth, but we are realistic about the time required to build successful new products and categories. At the same time, we continue to unlock significant growth within our external brands portfolio by improving availability and assortment depth.

Speaker #5: The decline over the years is mainly mix-driven, reflecting very strong growth in external brands, as well as somewhat weaker development than targeted in the private brands.

Göran Dahlin: The decline over the years is mainly mix-driven, reflecting a very strong growth in external brands, as well as somewhat weaker development than targeted in the private brands. In absolute terms, private brand sales was still strong at SEK 638 million over the last 12 months, and we continue to invest strategically in private label while increasingly focusing our efforts on the brands and categories where we see the strongest potential. Our ambition absolutely remains to accelerate growth, but we are realistic about the time required to build successful new products and categories. At the same time, we continue to unlock significant growth within our external brands portfolio by improving availability and assortment depth. This remains an important growth driver for us. Customer satisfaction. This remains a clear strength.

Speaker #5: In absolute terms, private brand sales were still strong at €638 million over the last 12 months. And we continue to invest strategically in private label, while increasingly focusing our efforts on the brands and categories where we see the strongest potential.

Speaker #1: This remains an important growth driver for us. Customer satisfaction. This remains a clear strength. We have quite high trust pilot scores compared to our peers in the industry.

Göran Dahlin: We have quite high Trustpilot scores compared to our peers in the industry, although we have, during the WMS transition, seen impact on our Net Promoter Score. But we believe that when we are out of this transition, this will re-return to the previously high levels and our Trustpilot score will remain stable at a high level. Continuing on some of our KPIs, we have an increased customer base, it is steadily growing. This is very satisfying to see, and we have a stable AOV year-over-year. With that, I hand over to our CFO, Fredrik Kjellgren.

Speaker #1: Although we have during the VMS transition seen impact on our net promoter score, but we believe that when we are out of this transition, this will return to the previously high levels and our trust pilot score will remain.

Speaker #5: Our ambition absolutely remains to accelerate growth, but we are really strict about the time required to build successful new products and categories. At the same time, we continue to unlock significant growth within our external brands portfolio by improving availability and assortment depth.

Speaker #1: Stable at the high level. Continuing on some of our KPIs. We have an increased customer base is steadily growing. This is very satisfying to see.

Speaker #5: This remains an important growth driver for us: customer satisfaction. This remains a clear strength. We have quite high Trustpilot scores compared to our peers in the industry.

Speaker #1: And we have a stable AOB year over year. And with that, I hand over to our CFO, Fredrik Kjellgren.

Göran Dahlin: We have quite high Trustpilot scores compared to our peers in the industry, although we have, during the WMS transition, seen impact on our Net Promoter Score. But we believe that when we are out of this transition, this will return to the previously high levels, and our Trustpilot score will remain stable at a high level. Continuing on some of our KPIs, we have an increased customer base. It is steadily growing. This is very satisfying to see, and we have a stable AOV year-over-year. With that, I hand over to our CFO, Fredrik Kjellgren.

Speaker #5: Although we have, during the VMS transition, seen an impact on our Net Promoter Score, we believe that when we are out of this transition, it will return to the previously high levels, and our Trustpilot score will remain stable at the high level.

Speaker #2: Thank you. If we zoom in a little bit on the gross margin, we can see that gross profit increased slightly year over year, to 231 million SEK, while the gross margin came in at 43.1 compared to 43.7 last year.

Fredrik Kjellgren: Thank you, Göran. If we zoom in a little bit on the gross margin, we can see that the gross profit increased slightly year-over-year to 231 million SEK, while the gross margin came in at 43.1% compared to 43.7% last year. The somewhat lower gross margin was mainly driven by mix effects and our active pricing approach. During the quarter, we continued to position prices to support commercial activity and remain competitive in the market. As before, our objective is to be price competitive, but not necessarily the cheapest in the market, while carefully balancing growth and margin. Looking at the shipping costs, in-freight amounted to 21 million SEK in the quarter, corresponding to 4% of revenues, which was unchanged compared with the same quarter last year. So pretty stable.

Speaker #5: Continuing on some of our KPIs: we have an increased customer base, which is steadily growing. This is very satisfying to see, and we have a stable AOB year over year.

Speaker #2: The somewhat lower gross margin was mainly driven by mixed effects, and our active pricing approach. During the quarter, we continued to position prices to support commercial activity, and remain competitive in the market.

Speaker #2: As before, our objective is to be price competitive, but not necessarily the cheapest in the market, while carefully balancing growth and margin. Looking at the shipping cost, in-freight amounted to 21 million in the quarter, corresponding to 4% of revenues, which was unchanged compared with the same quarter last year.

Speaker #5: And with that, I hand over to our CFO, Fredrik Källgren.

Speaker #2: Thank you. If we zoom in a little bit on the gross margin, we can see that the gross profit increased slightly year over year to SEK 231 million, while the gross margin came in at 43.1%, compared to 43.7%.

Fredrik Kjellgren: Thank you, Göran. If we zoom in a little bit on the gross margin, we can see that the gross profit increased slightly year-over-year to 231 million SEK, while the gross margin came in at 43.1% compared to 43.7%. The somewhat lower gross margin was mainly driven by mix effects and our active pricing approach. During the quarter, we continued to position prices to support commercial activity and remain competitive in the market. As before, our objective is to be price competitive, but not necessarily the cheapest in the market, while carefully balancing growth and margin. Looking at the shipping costs. In-freight amounted to 21 million SEK in the quarter, corresponding to 4% of revenues, which was unchanged compared with the same quarter last year. Pretty stable. That said, shipping rates from Asia continued to be very volatile, so this is something that we monitor closely.

Speaker #2: The somewhat lower gross margin was mainly driven by mix effects and our active pricing approach. During the quarter, we continued to position prices to support commercial activity and remain competitive in the market.

Speaker #2: So pretty stable. That said, shipping rates from Asia continue to be very volatile, so this is something that we monitor closely. And importantly, in-freight costs affect cash and working capital, when inventory is purchased, while they're recognized in the P&L only when products are sold.

Fredrik Kjellgren: That said, shipping rates from Asia continued to be very volatile, so this is something that we monitor closely. Importantly, in-freight costs affect cash and working capital when inventory is purchased, while they are recognized in the P&L only when products are sold. So there is a time lag. Overall, our focus remains the same, to grow gross profit in absolute terms by balancing pricing competitiveness, marketing efficiency, and margin discipline. Next slide, please. Now, to give some context to the adjusted EBIT for the quarter. Q2 adjusted EBIT was 34 million SEK compared to 32 million SEK last year. This corresponds to 6.4% of the revenue. As in previous quarters, there are also some costs within the adjusted EBIT that are related to transformation but not classified as items affecting comparability. During Q2, these amounted to approximately 7 million SEK in total.

Speaker #2: As before, our objective is to be price competitive, but not necessarily the cheapest in the market, while carefully balancing growth and margin. Looking at the shipping cost, in-freight amounted to SEK 21 million in the quarter, corresponding to 4% of revenues, which was unchanged compared with the same quarter last year.

Speaker #2: So there is a time lag. Overall, our focus remains the same, to grow gross profit in absolute terms by balancing pricing competitiveness, marketing efficiency, and margin discipline.

Speaker #2: Next slide, please. Now, to give some context to the adjusted EBIT for the quarter, Q2 adjusted EBIT was 34 million, compared to 32 million last year.

Speaker #2: So, pretty stable. That said, shipping rates from Asia continue to be very volatile, so this is something that we monitor closely. And importantly, inbound freight costs affect cash and working capital when inventory is purchased, while they're recognized in the P&L only when products are sold.

Fredrik Kjellgren: Importantly, in-freight costs affect cash and working capital when inventory is purchased, while they are recognized in the P&L only when products are sold. So there is a time lag here. Overall, our focus remains the same, to grow gross profit in absolute terms by balancing pricing competitiveness, marketing efficiency, and margin discipline. Next slide, please. Now, to give some context to the adjusted EBIT for the quarter. Q2 adjusted EBIT was 34 million SEK, compared to 32 million SEK last year. This corresponds to 6.4% of the revenue. As in previous quarters, there are also some costs within the adjusted EBIT that are related to transformation, but not classified as items affecting comparability. During Q2, these amounted to approximately 7 million SEK in total. Around 1 million SEK was due to the accelerated amortization of trademarks, and approximately 6 million SEK were related to transformation costs.

Speaker #2: This corresponds to 6.4% of the revenue. As in previous quarters, there are also some costs within the adjusted EBIT that are related to transformation.

Speaker #2: So there is a time lag here. Overall, our focus remains the same: to grow gross profit in absolute terms by balancing pricing competitiveness, marketing efficiency, and margin discipline.

Speaker #2: But not classified as items affecting comparability. During Q2, these amounted to approximately 7 million in total, around 1 million SEK was due to the accelerated amortization of trademarks.

Speaker #2: Next slide, please. Now, to give some context to the adjusted EBIT for the quarter: Q2 adjusted EBIT was €34 million, compared to €32 million last year.

Fredrik Kjellgren: Around 1 million SEK was due to the accelerated amortization of trademarks, and approximately 6 million were related to transformation costs. The transformation costs mainly relate to external consultants and overlapping license fees as we operate systems in parallel during the transition of our new tech platform. Excluding these two effects, adjusted EBIT would have been approximately 41 million for the quarter. The 1 million SEK of accelerated trademark amortization in Q2 will be the final remaining impact from the consolidation of our private brand portfolio. Looking ahead, the transformation cost will continue for some time as we stabilize the new WMS and progress with the rollout of the new ecom platform. However, we expect these costs to gradually decline over the coming quarters. As Göran mentioned earlier, part of the benefits from Pierce 2.0 have already been realized, mainly through lower depreciation and amortizations.

Speaker #2: And approximately 6 million were related to transformation costs. The transformation costs mainly relate to external consultants, and overlapping license fees as we operate systems in parallel during the transition of our new tech platform.

Speaker #2: This corresponds to 6.4% of the revenue. As in previous quarters, there are also some costs within the adjusted EBIT that are related to transformation.

Speaker #2: But not classified as items affecting comparability. During Q2, these amounted to approximately SEK 7 million in total. Around SEK 1 million was due to the accelerated amortization of trademarks.

Speaker #2: Excluding these two effects, adjusted EBIT would have been approximately 41 million, for the quarter. The 1 million SEK of accelerated trademark amortization in Q2 will be the final remaining impact from the consolidation of our private brand portfolio.

Speaker #2: And approximately €6 million were related to transformation costs. The transformation costs mainly relate to external consultants and overlapping license fees, as we operate systems in parallel during the transition to our new tech platform.

Speaker #2: Looking ahead, the transformation costs will continue for some time, as we stabilize the new VMS and progress with the rollout of the new platform.

Fredrik Kjellgren: The transformation costs mainly relate to external consultants and overlapping license fees as we operate systems in parallel during the transition of our new tech platform. Excluding these two effects, adjusted EBIT would have been approximately 41 million SEK for the quarter. The 1 million SEK of accelerated trademark amortization in Q2 will be the final remaining impact from the consolidation of our private brand portfolio. Looking ahead, the transformation cost will continue for some time as we stabilize the new WMS and progress with the rollout of the new ecom platform. However, we expect these costs to gradually decline over the coming quarters. As Göran mentioned earlier, part of the benefits from Pierce 2.0 have already been realized, mainly through lower depreciations and amortizations.

Speaker #2: However, we expect these costs to gradually decline over the coming quarters. As Jeroen mentioned earlier, part of the benefits from Pierce 2.0 have already been realized.

Speaker #2: Excluding these two effects, adjusted EBIT would have been approximately SEK 41 million for the quarter. The SEK 1 million of accelerated trademark amortization in Q2 will be the final remaining impact from the consolidation of our private brand portfolio.

Speaker #2: Mainly through lower depreciations and amortizations. We continue to expect a further annual EBIT improvement, with approximately 20 to 30 million SEK as transformation costs come down, and the remaining systems are fully implemented.

Fredrik Kjellgren: We continue to expect a further annual EBIT improvement of approximately 20 to 30 million SEK as transformation costs come down and the remaining systems are fully implemented. Next slide, please. Going over to the overhead costs. Overhead costs remain broadly stable, in absolute terms, at 75 million SEK compared to 74 million SEK last year. As a share of revenue, however, overhead costs improved slightly from 14.1% last year, and this is despite the cost of transformation of about 6 million that we absorbed in the quarter. These costs mainly related to the external consultants and parallel license fees connected to the rollout of the tech stack, but there are also some costs related to more operational consultants supporting the WMS rollout. If we take a step back and look at the progress since the start of the Pierce 2.0, the change is significant.

Speaker #2: Looking ahead, the transformation cost will continue for some time as we stabilize the new VMS and progress with the rollout of the new Eco platform.

Speaker #2: Next slide, please. Going over to the overhead costs. Overhead costs remain broadly stable. So in absolute terms, at 75 million SEK, compared to 74 million SEK last year.

Speaker #2: However, we expect these costs to gradually decline over the coming quarters. As Yara mentioned earlier, part of the benefits from Pierce 2.0 have already been realized.

Speaker #2: As a share of revenue, however, overhead costs improved slightly, from 14.1% last year and this is despite the cost of transformation of about 6 million that we absorbed in the quarter.

Speaker #2: Mainly through lower depreciation and amortization. We continue to expect a further annual EBIT improvement of approximately SEK 20–30 million as transformation costs come down.

Fredrik Kjellgren: We continue to expect a further annual EBIT improvement of approximately 20 to 30 million SEK as transformation costs come down and the remaining systems are fully implemented. Next slide, please. Going over to the overhead costs. Overhead costs remain broadly stable in absolute terms at 75 million SEK compared to 74 million SEK last year. As a share of revenue, however, overhead costs improved slightly from 14.1% last year, and this is despite the cost of transformation of about 6 million SEK that we absorbed in the quarter. These costs mainly related to the external consultants and parallel license fees connected to the rollout of the tech stack, but there are also some costs related to more operational consultants supporting the WMS rollout. If we take a step back and look at the progress since the start of the Pierce 2.0, the change is significant.

Speaker #2: And the remaining systems are fully implemented. Next slide, please. Going over to the overhead costs. Overhead costs remain broadly stable. So in absolute terms, at 75 million SEK compared to 74 million SEK last year.

Speaker #2: These costs mainly relate to the external consultants, and parallel license fees connected to the rollout of the tech stack, but they're also some costs related to more operational consultants, supporting the VMS rollout.

Speaker #2: If we take a step back and look at the progress since the start of the Pierce 2.0, the change is significant. Going back to Q3, 2023, we have reduced our white-collar workforce by approximately 100 FTEs.

Speaker #2: As a share of revenue, however, overhead costs improved slightly from 14.1% last year. And this is despite the cost of transformation of about SEK 6 million that we absorbed in the quarter.

Fredrik Kjellgren: Going back to Q3 2023, we have reduced our white-collar workforce by approximately 100 FTEs or 40%, from 256 FTEs to 157 FTEs today. At the same time, the rolling 12 revenue has increased by 17%, and sales per FTE, white-collar FTE, has thus increased by approximately 90% since the launch of Pierce 2.0. This clearly demonstrates the scalability of our business model and the efficiencies we have created through simplifying processes, reducing bureaucracy, and empowering teams to make faster decisions. Importantly, we have achieved this while continuing to grow the business and carrying the temporary costs for the transformation. Next slide, please. Heading over to the net working capital. We have seen a significant improvement compared to last year. The improvement is mainly the result of the continued progress in inventory management and our disciplined approach to working capital.

Speaker #2: These costs mainly relate to the external consultants, and parallel license fees connected to the rollout of the tech stack. But there are also some costs related to more operational sort of consultants, supporting the VMS rollout.

Speaker #2: Or 40% from 256 FTEs to 157 FTEs today. At the same time, the rolling 12 revenue has increased by 17%, and sales per FTE, white-collar FTE, has thus increased by approximately 19.90% since the launch of Pierce 2.0.

Speaker #2: If we take a step back and look at the progress since the start of Pierce 2.0, the change is significant. Going back to Q3 2023, we have reduced our white-collar workforce by approximately 100 FTEs.

Fredrik Kjellgren: Going back to Q3 2023, we have reduced our white-collar workforce by approximately 100 FTEs or 40%, from 256 FTEs to 157 FTEs today. At the same time, the rolling 12 revenue has increased by 17%, and the sales per FTE, white-collar FTE, has thus increased by approximately 90% since the launch of Pierce 2.0. This clearly demonstrates the scalability of our business model and the efficiencies we have created through simplifying processes, reducing bureaucracy, and empowering teams to make faster decisions. Importantly, we have achieved this while continuing to grow the business and carrying the temporary cost for the transformation. Next slide, please. Heading over to the net working capital. We have seen a significant improvement compared to last year. The improvement is mainly the result of the continued progress in inventory management and our disciplined approach to working capital.

Speaker #2: This clearly demonstrates the scalability of our business model, and the efficiencies we have created through simplifying processes reducing bureaucracy, and empowering teams to make faster decisions.

Speaker #2: Or 40%, from 256 FTEs to 157 FTEs today. At the same time, the rolling 12-month revenue has increased by 17%. And the sales per FTE, white-collar FTE, has thus increased by approximately 90% since the launch of Pierce 2.0.

Speaker #2: And importantly, we have achieved this while continuing to grow the business and carrying the temporary costs for the transformation. Next slide, please. Heading over to the networking capital, we've seen a significant improvement compared to last year.

Speaker #2: This clearly demonstrates the scalability of our business model, and the efficiencies we have created through simplifying processes, reducing bureaucracy, and empowering teams to make faster decisions.

Speaker #2: The improvement is mainly the results of the continued progress in inventory management and our discipline approach to working capital. While working on the working capital, we are sort of keeping a close eye on the inventory, and I'm happy to say that the inventory remains well-balanced.

Fredrik Kjellgren: While working on the working capital, we are keeping a close eye on the inventory, and I am happy to say that the inventory remains well-balanced. Going forward, we still see opportunities to strengthen part of the assortment and further improve availability. Our ambition is to do this without significantly increasing the overall inventory levels. The focus is therefore to continuously improving our purchasing methodology and inventory quality, keeping the stock fresh, acting early on slow-moving products, and maintaining the right inventory in the right areas. This should allow us to continue supporting growth while maintaining disciplined working capital management. With that, I hand back over to you, Göran.

Speaker #2: Going forward, we still see opportunities to strengthen part of the assortment, and further improve availability. There are ambition is to do this without significantly increasing the overall inventory is therefore to continuously improving our purchasing methodology, and inventory quality.

Speaker #2: We've seen a significant improvement compared to last year. The improvement is mainly the result of the continued progress in inventory management and our disciplined approach to working capital.

Speaker #2: While working on the working capital, we are keeping a close eye on inventory. I'm happy to say that the inventory remains well balanced.

Speaker #2: Keeping the stock fresh, acting early on slow-moving products, and maintaining the right inventory in the right areas. This should allow us to continue supporting growth while maintaining discipline working capital, management.

Speaker #2: Going forward, we still see opportunities to strengthen parts of the assortment and further improve availability. But our ambition is to do this without significantly increasing the overall inventory levels.

Speaker #2: And with that, I hand back over to you, Jeroen.

Speaker #1: Thank you, Fredrik. So I will finalize with looking forward. So summarizing a little bit on Pierce 2.0, since Pierce was started, literally in a garage in 2008, it was a successful and fast-growing company.

Göran Dahlin: Thank you, Fredrik. I will finalize with looking forward. Summarizing a little bit on Pierce 2.0. Since Pierce was started literally in a garage in 2008, it was a successful and fast-growing company. Following the COVID period, however, the business entered a more challenging phase. The demand was declining, there was a pressure on margins, and the losses accumulated. I joined Pierce in Q2 2023. Shortly thereafter, in Q3 2023, we launched Pierce 2.0 with clear priorities to return to profitability and get back to sustainable growth while making the company more stable and scalable. We initiated a major organizational reset in Q3 to Q4 2023, where we simplified the structure and significantly reduced the white-collar headcount and then continued to reduce over the years.

Speaker #2: The focus is therefore to continuously improve our purchasing methodology and inventory quality, keeping the stock fresh, acting early on slow-moving products, and maintaining the right inventory in the right areas.

Speaker #1: Following the COVID period, however, the business entered a more challenging phase. The demand was declining, there was a pressure on margins, and the losses accumulated.

Speaker #2: This should allow us to continue supporting growth while maintaining disciplined working capital management. And with that, I hand back over to you, Yara.

Speaker #1: I joined Pierce in Q2, 2023, shortly thereafter, in Q3, 2023, we launched Pierce 2.0. With clear priorities to return to profitability and get back to sustainable growth, while making the company more stable and scalable.

Speaker #1: Thank you, Fredrick. So I will finalize with looking forward. To summarize a little bit about Pierce 2.0: since Pierce was started—literally in a garage in 2008—it has been a successful and fast-growing company.

Göran Dahlin: Thank you, Fredrik. I will finalize with looking forward. Summarizing a little bit on Pierce 2.0. Since Pierce was started literally in a garage in 2008, it was a successful and fast-growing company. Following the COVID period, however, the business entered a more challenging phase. The demand was declining, there was a pressure on margins, and the losses accumulated. I joined Pierce in Q2 2023. Shortly thereafter, in Q3 2023, we launched Pierce 2.0 with clear priorities to return to profitability and get back to sustainable growth while making the company more stable and scalable. We initiated a major organizational reset in Q3/Q4 2023, where we simplified the structure and significantly reduced the white-collar headcount and then continued to reduce over the years.

Speaker #1: We initiated a major organizational reset in Q3, Q4, 2023, where we simplified the structure and significantly reduced the white-collar headcount, and then continued to reduce over the years.

Speaker #1: Following the COVID period, however, the business entered a more challenging phase. Demand was declining, there was pressure on margins, and losses accumulated.

Göran Dahlin: At the same time, we took a hard look at our technology platform, and we concluded that the existing tech stack was not fit for purpose. It was underperforming, unstable, and lacked the scalability required for us to expand into new markets and verticals. As a result, we made the tough decision to replace four of our core IT systems, including a warehouse management system and e-commerce platform. This was a difficult decision. We knew it would be both costly and time-consuming, but also necessary. We simply had no alternative. Alongside this, we evaluated our private label portfolio and concluded that sales were spread across too many brands, making it difficult to invest in brands in an efficient way. Some brands also suffered from weakened brand perception due to inconsistency in product quality and lack of clear assortment and brand identity.

Speaker #1: At the same time, we took a hard look at our technology platform, and we concluded that the existing tech stack was not fit for purpose.

Speaker #1: I joined Pierce in Q2 2023. Shortly thereafter, in Q3 2023, we launched Pierce 2.0, with clear priorities to return to profitability and get back to sustainable growth, while making the company more stable and scalable.

Speaker #1: It was underperforming, unstable, and lacked the scalability required for us to expand into new markets and verticals. As a result, we made the tough decision to replace four of our core IT systems, including our warehouse management system, and e-commerce platform.

Speaker #1: We initiated a major organizational reset in Q3 and Q4 2023, where we simplified the structure and significantly reduced the white-collar headcount, and then continued to reduce it over the years.

Speaker #1: This was a difficult decision. We knew it would be both costly and time-consuming, but also necessary. We simply had no alternative. Alongside this, we evaluated our private label portfolio and concluded that sales were spread across too many brands, making it difficult to invest in brands in an efficient way.

Göran Dahlin: At the same time, we took a hard look at our technology platform, and we concluded that the existing tech stack was not fit for purpose. It was underperforming, unstable, and lacked the scalability required for us to expand into new markets and verticals. As a result, we made the tough decision to replace four of our core IT systems, including a Warehouse Management System and e-commerce platform. This was a difficult decision. We knew it would be both costly and time-consuming, but also necessary. We simply had no alternative. Alongside this, we evaluated our private label portfolio and concluded that sales were spread across too many brands, making it difficult to invest in brands in an efficient way. Some brands also suffered from weakened brand perception due to inconsistency in product quality and lack of clear assortment and brand identity.

Speaker #1: At the same time, we took a hard look at our technology platform, and we concluded that the existing tech stack was not fit for purpose.

Speaker #1: Some brands also suffered from weakened brand perception due to inconsistency in product quality and lack of clear assortment and brand identity. We therefore simplified the portfolio from 73 brands, focusing on Raven & Gear, expanding it into the large and highly competitive on-road segment, and ProWorx in parts and accessories, while keeping course as a tactical brand.

Göran Dahlin: We therefore simplified the portfolio from seven to three brands, focusing on Raven in gear, expanding it into the large and highly competitive on road segment and Proworks in parts and accessories while keeping Course as a tactical brand. We migrated several thousands of products and replaced several thousands of products also. We partnered with leading designers to strengthen the overall brand and product offering. This transition has been quite hard, to be frank, and this is the reason why the growth rate of the private label has been somewhat lower than we had hoped for. But we are absolutely convinced it has been the right decision, and long term, this is the right thing to do. With fewer brands, we can invest more efficiently in those brands and build real brands.

Speaker #1: We migrated several thousands of products and replaced several thousands of products also. And we partnered with leading designers to strengthen the overall brand and product offering.

Speaker #1: Some brands also suffered from weakened brand perception due to inconsistency in product quality and lack of peer assortment and brand identity. We therefore simplified the portfolio from 73 brands, focusing on Raven & Gear, expanding it into the large and highly competitive on-road segment, and ProWorx in parts and accessories, while keeping Course as a tactical brand.

Speaker #1: This transition has been quite hard to be frank. But we and this is the reason why the growth rate of the private label has been somewhat lower than we had hoped for.

Göran Dahlin: We therefore simplified the portfolio from seven to three brands, focusing on Raven and Gear, expanding it into the large and highly competitive on road segment and Proworks in parts and accessories while keeping Course as a tactical brand. We migrated several thousands of products and replaced several thousands of products. We partnered with leading designers to strengthen the overall brand and product offering. This transition has been quite hard, to be frank, and this is the reason why the growth rate of the private label has been somewhat lower than we had hoped for. We are absolutely convinced it has been the right decision, and long term, this is the right thing to do. With fewer brands, we can invest more efficiently in those brands and build real brands.

Speaker #1: But we are absolutely convinced it has been the right decision, and long-term this is the right thing to do. With fewer brands, we can invest more efficiently in those brands and build real brands.

Speaker #1: We migrated several thousand products and replaced several thousand products as well. And we partnered with leading designers to strengthen the overall brand and product offering.

Speaker #1: Then we spent several quarters cleaning up inventory through targeted sales activities for slow-moving goods, and more restricted buying. We also made it very large one-time write-off or write-down of 40 million SEK of obsolete inventory.

Göran Dahlin: Then we spent several quarters cleaning up inventory through targeted sales activities for slow-moving goods and more restricted buying. We also made a very large one-time write-down of SEK 40 million of obsolete inventory. Growth was initially held back as we cleared out slow-moving inventory but began to recover once we rebuilt the assortment in Q4 2024. We aim to take this position as the true specialist in our industry by building a wider and deeper assortment than anyone else, combined with very competitive delivery lead times. Since Q3 2024, sales has grown by 70% despite the challenging market, and we have clearly gained market share. Since Q4 2025, growth reported in SEK has slowed down due to currency headwinds of 4% to 5% in Q4 and Q1, and this quarter we have been significantly affected by the WMS transition.

Speaker #1: This transition has been quite hard, to be frank. But we—and this is a reason why—the growth rate of the private label has been somewhat lower than we had hoped for.

Speaker #1: And growth was initially held back as we cleared out slow-moving inventory, but began to recover once we rebuilt the assortment in Q4, 2024. We aim to take this position as the true specialist in our industry by building a wider and deeper assortment than anyone else, combined with very competitive delivery lead times.

Speaker #1: But we are absolutely convinced it has been the right decision, and, long-term, this is the right thing to do. With fewer brands, we can invest more efficiently in those brands and build real brands.

Speaker #1: Then we spent several quarters cleaning up inventory through targeted sales activities for slow-moving goods, and more restricted buying. We also made a very large one-time write-off, a write-down of SEK 40 million of obsolete inventory.

Speaker #1: Since Q3, 2024, sales has grown by 17% despite the challenging market, and we have clearly gained market share. Since Q4, 2025, growth reported in SEK has slowed down.

Göran Dahlin: We spent several quarters cleaning up inventory through targeted sales activities for slow-moving goods and more restricted buying. We also made a very large one-time write-down of 40 million SEK of obsolete inventory. Growth was initially held back as we cleared out slow-moving inventory but began to recover once we rebuilt the assortment in Q4 2024. We aim to take this position as the true specialist in our industry by building a wider and deeper assortment than anyone else, combined with very competitive delivery lead times. Since Q3 2024, sales has grown by 70% despite the challenging market, and we have clearly gained market share. Since Q4 2025, growth reported in SEK has slowed down due to currency headwind of 4% to 5% in Q4 and Q1, and this quarter we have been significantly affected by the WMS transition.

Speaker #1: Due to currency headwinds, of 4 to 5% in Q4 and Q1, and this quarter we have been significantly affected by the VMS transition. Underlying the business is still growing in a healthy way, albeit slightly lower than the very high year-over-year growth rate, with an average of 16% reported in the four quarters of Q4 to Q3, 2025.

Speaker #1: Growth was initially held back as we cleared out slow-moving inventory, but began to recover once we rebuilt the assortment in Q4 2024. We aim to take this position as the true specialist in our industry by building a wider and deeper assortment than anyone else, combined with very competitive delivery lead times.

Göran Dahlin: Underlying, the business is still growing in a healthy way, albeit slightly lower than the very high year-over-year growth rate, with an average of 16% reported in the four quarters of Q4 to Q3 2025. This growth, combined with a 39% reduction in the white-collar headcount, as Fredrik said, has resulted in a 90% increase in sales by white-collar employees, something that we are very proud of. This has demonstrated the efficiency gains of Pierce 2.0 program in a very good way. Looking at the results, we reported an EBITDA of -69 million SEK in 2023, and since then, we have turned the business around and have been profitable in all quarters except for a setback in Q1 2025.

Speaker #1: Since Q3 2024, sales have grown by 17% despite the challenging market, and we have clearly gained market share. Since Q4 2025, with growth reported in SEC, growth has slowed down.

Speaker #1: This growth, combined with the 39% reduction in the white-collar headcount, as Fredrik said, has resulted in a 90% increase in sales by white-collar employees, something that we are very proud of.

Speaker #1: And this has demonstrated the efficiency gains of Pierce 2.0 program in a very good way. Looking at the results, we reported an EBITDA of minus 69 million SEK in 2023, and since then we have turned the business around and have been profitable in all quarters, except for a setback in Q1, 2025.

Speaker #1: Due to a currency headwind of 4% to 5% in Q4 and Q1, this quarter we have been significantly affected by the VMS transition. Underlying, the business is still growing in a healthy way.

Göran Dahlin: Underlying, the business is still growing in a healthy way, albeit slightly lower than the very high year-over-year growth rate with an average of 16% reported in the fourth quarters of Q4 to Q3 2025. This growth, combined with a 39% reduction in the white-collar headcount, as Fredrik said, has resulted in a 90% increase in sales by white-collar employees, something that we are very proud of. This has demonstrated the efficiency gains of Pierce 2.0 program in a very good way. Looking at the results, we reported an EBIT of -69 million SEK in 2023, and since then, we have turned the business around and have been profitable in all quarters except for a setback in Q1 2025.

Speaker #1: Albeit slightly lower than the very high year-over-year growth rate, with an average of 16% reported in the fourth quarters from Q4 to Q3 2025.

Speaker #1: Adjusted EBITDA improved first to 25 million SEK in 2024, 45 million SEK in 2025, and a last 12-month basis we have reached now 61 million SEK, despite transformation costs.

Göran Dahlin: Adjusted EBITDA improved first to 25 million SEK in 2024, 45 million SEK in 2025, and on a last 12 months basis, we have reached now 61 million SEK despite transformation costs. At the same time, the underlying business has strengthened. The customer base has grown, customer satisfaction and retention has improved, and also employee Net Promoter Score has increased. As we approach the end of this transformation, we are now gradually moving into the next phase, which we call expansion. With a stronger and more scalable platform, we are in position to expand into new markets and categories and to explore consolidation opportunities in a fragmented market. What's left now in Pierce 2.0? The remaining activities is primarily the rollout of the e-com platform, apart from stabilizing our WMS, which will take the beginning of Q3 to do. We are slightly later than we anticipated.

Speaker #1: This growth, combined with the 39% reduction in the white-collar headcount, as Fredrick said, has resulted in a 90% increase in sales by white-collar employees, something that we are very proud of.

Speaker #1: At the same time, the underlying business has strengthened. The customer base has grown, customer satisfaction and retention has improved, and also employee net promoter score has increased.

Speaker #1: And this has demonstrated the efficiency gains of the Pierce 2.0 program in a very good way. Looking at the results, we reported an EBIT of minus SEK 69 million in 2023.

Speaker #1: And as we approach the end of this transformation, we are now gradually moving into the next phase, which we call expansion. With a stronger and more scalable platform, we are ready we are in a position to expand into new markets and categories and to explore consolidation opportunities in a fragmented market.

Speaker #1: And since then, we have turned the business around and have been profitable in all quarters, except for a setback in Q1 2025. Adjusted EBIT improved, first to SEK 25 million in 2024, SEK 45 million in 2025, and on a last 12-month basis, we have now reached SEK 61 million, despite transformation costs.

Göran Dahlin: Adjusted EBIT improved first to 25 million SEK in 2024, 45 million SEK in 2025, on a last 12 months basis, we have reached now 61 million SEK despite transformation costs. At the same time, the underlying business has strengthened. The customer base has grown, customer satisfaction and retention has improved, and also employee Net Promoter Score has increased. As we approach the end of this transformation, we are now gradually moving into the next phase, which we call expansion. With a stronger and more scalable platform, we are in a position to expand into new markets and categories and to explore consolidation opportunities in a fragmented market. What's left now in Pierce 2.0? The remaining activities is primarily the rollout of the e-com platform, apart from stabilizing our WMS, which will take the beginning of Q3 to do. We are slightly later than we anticipated.

Speaker #1: So what's left now in Pierce 2.0? The remaining activities is primarily the rollout of the e-comm platform, apart from stabilizing our WMS, which will take the beginning of Q3 to do.

Speaker #1: At the same time, the underlying business has strengthened. The customer base has grown. Customer satisfaction and retention have improved. Also, the employee Net Promoter Score has increased.

Speaker #1: And as we approach the end of this transformation, we are now gradually moving into the next phase, which we call expansion. With a stronger and more scalable platform, we are ready—we are in a position to expand into new markets and categories, and to explore consolidation opportunities in a fragmented market.

Speaker #1: And we are slightly later than we anticipated. We had hoped to be able to close everything during Q2. We were not able to do that.

Göran Dahlin: We had hoped to be able to close everything during Q2. We were not able to do that. This affects our launch plan of the e-com. In Q4 last year, we launched a beta version of our new e-com stack in four pilot markets where we had no localized sites before. After a period of improvements, we launched the remaining markets to be localized primarily in Eastern Europe. We therefore now operate local sites in 29 European countries. We also migrated Spain and Belgium as pilot markets for the markets where we have had local sites for many years, which we in Pierce call established markets. We will now follow up by migrating the rest of the smaller established markets during August and September.

Speaker #1: And this affects our launch plan of the e-comm. So in Q4 last year, we launched a beta version of our new e-comm stack in four pilot markets, where we had no localized sites before.

Speaker #1: So what's left now in Pierce 2.0? The remaining activity is primarily the rollout of the e-commerce platform, apart from stabilizing our WMS, which will take the beginning of Q3 to do.

Speaker #1: After a period of improvements, we launched the remaining markets to be localized, primarily in Eastern Europe. And we therefore now operate local sites in 29 European countries.

Speaker #1: We also migrated Spain and Belgium as pilot markets for the markets where we have had local sites for many years, which we in Pierce call established markets.

Speaker #1: We are slightly later than we anticipated. We had hoped to be able to close everything during Q2, but we were not able to do that.

Göran Dahlin: We had hoped to be able to close everything during Q2. We were not able to do that. This affects our launch plan of the e-com. In Q4 last year, we launched a beta version of our new e-com stack in four pilot markets where we had no localized sites before. After a period of improvements, we launched the remaining markets to be localized, primarily in Eastern Europe. We therefore now operate local sites in 29 European countries. We also migrated Spain and Belgium as pilot markets for the markets where we have had local sites for many years, which we in Pierce call established markets. We will now follow up by migrating the rest of the smaller established markets during August and September.

Speaker #1: And this affects our launch plan for the e-comm. So in Q4 last year, we launched a beta version of our new e-comm stack in four pilot markets where we had no localized sites before.

Speaker #1: We will now follow up by migrating the rest of the smaller established markets during August and September. But as we have experienced quite a significant reduction in sales post-launch, and this is quite known that and expected that this happens normally when you change and make big changes to your sites, primarily due to the search engines that need to relearn the new structure of your sites.

Göran Dahlin: But as we have experienced quite a significant reduction in sales post-launch, this is quite known that, or unexpected that this happens normally when you change and make big changes to your sites, primarily due to the search engines that need to relearn the new structure of your sites, and this takes some months to recover. We have seen this in all the markets that we have launched. But as we do that, and we are very keen on protecting the very strong sales period of the Black Friday sales period, we will wait with launching the larger established markets until December and January. The transformation costs are connected both to the WMS and the new e-com stack. As we stabilize the WMS and roll out the e-com stack, the transformation cost will gradually be reduced over the coming quarters.

Speaker #1: After a period of improvements, we launched the remaining markets to be localized, primarily in Eastern Europe. We therefore now operate local sites in 29 European countries.

Speaker #1: We also migrated Spain and Belgium as pilot markets, for the markets where we have had local sites for many years, which we in Pierce call established markets.

Speaker #1: And this takes a month to recover. And we have seen this in all the markets that we have launched. But as we do that, and we are very keen on protecting the very strong sales period of the Black Friday sales period, we will wait with launching the larger markets the larger established markets until December and January.

Speaker #1: We will now follow up by migrating the rest of the smaller established markets during August and September. But, as we have experienced quite a significant reduction in sales post-launch—and it is quite known and expected that this normally happens when you make big changes to your sites.

Göran Dahlin: As we have experienced quite a significant reduction in sales post-launch, and this is quite known or unexpected that this happens normally when you change and make big changes to your sites, primarily due to the search engines that need to relearn the new structure of your sites, this takes some months to recover. We have seen this in all the markets that we have launched. As we do that, and we are very keen on protecting the very strong sales period of the Black Friday sales period, we will wait with launching the larger established markets until December and January. The transformation costs are connected both to the WMS and the new eCom stack. As we stabilize the WMS and roll out the eCom stack, the transformation cost will gradually be reduced over the coming quarters.

Speaker #1: The transformation costs are connected both to the WMS and the new e-comm stack. And as we stabilize the WMS and roll out the e-comm stack, the transformation costs will gradually be reduced over the coming quarters.

Speaker #1: Primarily, this is due to the search engines needing to relearn the new structure of your sites, and this takes about a month to recover. We have seen this in all the markets that we have launched.

Speaker #1: But as we do that, and we are very keen on protecting the very strong sales period of the Black Friday sales period, we will wait with launching the larger markets—the larger established markets—until December and January.

Speaker #1: So looking ahead, we are now finalizing the 2.0 transformation. And with the scalable platform, we're entering a new expansion phase. Apart from defending and growing in our established markets, the rollout of 13 localized markets and continued growth in mountain bike and scooter motor categories this will broaden our addressable market, create cross-selling opportunities, and add new revenue, new streams over time.

Göran Dahlin: Looking ahead, we are now finalizing the Pierce 2.0 transformation. With a scalable platform, we are entering a new expansion phase. Apart from defending and growing in our established markets, the rollout of 13 localized markets and continued growth in mountain bike and scooter motor categories will broaden our addressable market, create cross-selling opportunities, and add new revenue streams over time. It will take time to scale, but will be important contributor to our long-term growth. I must say that the start of the new markets and the new verticals has been very promising, even if it is a short timeframe. Finally, the European motorcycle e-commerce market remains fragmented and ripe for consolidation. As the largest and only pan-European listed player with a scalable platform already in place, Pierce is uniquely positioned to participate and potentially lead the next phase of industry consolidation.

Speaker #1: The transformation costs are connected both to the WMS and the new e-comm stack. As we stabilize the WMS and roll out the e-comm stack, the transformation costs will gradually be reduced.

Speaker #1: It will take time to scale, but we'll be important contributor to our long-term growth. And I must say that the start of the new markets and the new verticals has been very promising even if it's a short time frame.

Speaker #1: Over the coming quarters. So, looking ahead, we are now finalizing the 2.0 transformation. And with the scalable platform, we're entering a new expansion phase.

Göran Dahlin: Looking ahead, we are now finalizing the 2.0 transformation, and with the scalable platform, we are entering a new expansion phase. Apart from defending and growing in our established markets, the roll-out of 13 localized markets and continued growth in mountain bike and scooter motor categories, this will broaden our addressable market, create cross-selling opportunities, and add new revenue streams over time. It will take time to scale, but it will be important contributor to our long-term growth. I must say that the start of the new markets and the new verticals has been very promising, even if it is a short timeframe. Finally, the European motorcycle e-commerce market remains fragmented and ripe for consolidation. As the largest and only pan-European listed player with a scalable platform already in place, Pierce is uniquely positioned to participate and potentially lead the next phase of industry consolidation.

Speaker #1: And finally, the European motorcycle e-commerce market remains fragmented and ripe for consolidation. As the largest and only pan-European listed player with a scalable platform already in place, Pierce is uniquely positioned to participate and potentially lead the next phase of industry consolidation.

Speaker #1: Apart from defending and growing in our established markets, the rollout of 13 localized markets and continued growth in the mountain bike and scooter moped categories will broaden our addressable market, create cross-selling opportunities, and add new revenue streams over time.

Speaker #1: So this ends our presentation for today. And with that, I hand over for Q&A.

Göran Dahlin: This ends our presentation for today. With that, I hand over for Q&A.

Speaker #1: It will take time to scale, but it will be an important contributor to our long-term growth. I must say that the start of the new markets and the new verticals has been very promising, even if it's a short time frame.

Speaker #2: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad.

Operator: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Adrian Elmlund from Nordea. Please go ahead.

Operator: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Adrian Elmlund from Nordea. Please go ahead.

Speaker #1: And finally, the European motorcycle e-commerce market remains fragmented and ripe for consolidation. As the largest and only pan-European listed player, with a scalable platform already in place, Pierce is uniquely positioned to participate in and potentially lead the next phase of industry consolidation.

Speaker #2: The next question comes from Adrian Elmlund from Nordea. Please go ahead.

Speaker #3: Hi, Yoram and Fredrik. Good morning to you. I think I have three main questions. I'll take them one by one. So firstly, you're kind of guiding here for continued negative effects from the warehouse management system during Q3, right?

Adrian Elmlund: Hi, Göran and Fredrik. Good morning to you. I think I have three main questions. I will take them one by one. Firstly, you are kind of guiding here for continued negative effects from the warehouse management system during Q3, right? I think you said that you expect it to be solved end of the quarter. Could you perhaps give us some more details on why you expect this, and what is more to be done during the quarter, if you will?

Speaker #1: That concludes our presentation for today. With that, I'll hand over for Q&A.

Göran Dahlin: This ends our presentation for today. With that, I hand over for Q&A.

Speaker #3: I think you said that you expect it to be resolved. End of the quarter. Could you perhaps give us some more details on sort of why you expect this?

Speaker #2: If you wish to ask a question, please dial #P5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #P6 on your telephone keypad.

Operator 2: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Adrian Elmlund from Nordea. Please go ahead.

Speaker #3: And sort of what is more to be done during the quarter, if you will?

Speaker #1: Hi, Adrian. Good morning to you. Good question. So thank you for that. There are two different things. One is the productivity and functionality of the WMS.

Speaker #2: The next question comes from Adrian Elmlin from Nordea. Please go ahead.

Göran Dahlin: Hi, Adrian. Good morning to you. Good question. Thank you for that. There are two different things. One is the productivity and functionality of the WMS and the operators. It takes time to ramp up the system. Bitlog that we had before, we have had for 10 years, more than 10 years, and we have been adapting that, improving that. When you launch something completely new like this, it takes some months before you are back to normal productivity. Then it is also, as we mentioned in the call now that we have had a quite strong or strong. We have had a big backlog in outbound and inbound, and that takes time to work out. Even if the outbound is almost gone now, we still have a backlog on inbound, which affects availability and hence our sales because we have a lot of stock outs at the moment.

Speaker #1: Hi, Yoram and Fredrick. Good morning to you. I think I have three main questions; I'll take them one by one. So firstly, you're kind of guiding here for continued negative effects from the warehouse management system during Q3, right?

Adrian Elmlund: Hi, Göran and Fredrik. Good morning to you. I think I have 3 main questions. I'll take them one by one. Firstly, you're kind of guiding here for continued negative effects from the Warehouse Management System during Q3, right? I think you said that you expect it to be solved by the end of the quarter. Could you perhaps give us some more details on why you expect this, and what is more to be done during the quarter, if you will?

Speaker #1: And the operators. So it takes time to ramp up a system. Bitlog that we had before, we've had for 10 years, more than 10 years.

Speaker #1: I think you said that you expected to be sold by the end of the quarter. Could you perhaps give us some more details on why you expect this?

Speaker #1: And we've been adapting that, improving that, and when you launch something completely new like this, it takes some months before you're back to normal productivity.

Speaker #1: And sort of, what is more to be done during the quarter, if you will?

Speaker #1: But then it's also as we mentioned in the call now that we have had a quite strong or strong we've had a big backlog in outbound and inbound, and that takes time to work down.

Speaker #3: Hi, Adrian. Good morning to you. Good question, so thank you for that. There are two different things. One is the productivity and functionality of the WMS.

Göran Dahlin: Hi, Adrian. Good morning to you. Good question. Thank you for that. There are 2 different things. One is the productivity and functionality of the WMS, and the operators. It takes time to ramp up a system. Bitlong that we had before, we've had for more than 10 years, and we've been adapting that, improving that. When you launch something completely new like this, it takes some months before you're back to normal productivity. Then it's also, as we mentioned in the call now that we have had a big backlog in outbound and inbound, and that takes time to work out. Even if the outbound is almost gone now, we still have a backlog of inbound, which affects availability and hence our sales because we have a lot of stock-outs at the moment, and that will take some time to get rid of.

Speaker #3: And the operators. So it takes time to ramp up the system. The Bitlog that we had before, we've had for ten years, more than ten years.

Speaker #1: And even if the outbound is almost gone now, we still have a backlog and inbound which affects availability and hence our sales because we don't have yeah, we have a lot of stockouts at the moment.

Speaker #3: And we've been adapting that, improving that. When you launch something completely new like this, it takes some months before you're back to normal productivity.

Speaker #1: And that will take some time to get rid of.

Göran Dahlin: That will take some time to get rid of.

Speaker #3: Okay, fair enough. Second question here regarding the new localized websites, the scooter and bike categories as well. Could you. That these are sort of the main growth drivers in, let's say, the coming 12 months, or are they still too small?

Adrian Elmlund: Okay, fair enough. Second question here regards to the new localized websites, the scooter and bike categories as well. Could you that these are sort of the main growth drivers in, let us say, the coming 12 months? Or are they still too small? If not, then what is kind of the main growth driver for the upcoming expansion phase that you mentioned during the presentation?

Speaker #3: But then it's also as we mentioned in the in the call now that we have had a quite strong or strong we've had a big backlog in outbound and inbound.

Speaker #3: And that takes time to work down. And even if the outbound is almost gone now, we still have a backlog and inbound which affects availability and hence our sales because we don't have yeah, we have a lot of stockouts at the moment.

Speaker #3: And if not, then what is kind of the main growth driver for the upcoming expansion phase that you mentioned during the presentation?

Speaker #1: So number one is, of course, to defend and grow the current business that we have in the established markets. We hope that the market will recover a little bit and that we start seeing good signs in primarily in some of the markets in Europe, but far from all.

Göran Dahlin: Number one is, of course, to defend and grow the current business that we have in the established markets. We hope that the market will recover a little bit and that we start seeing good signs primarily in some of the markets in Europe, but far from all. We also have the inflation, of course, that will naturally be driving underlying growth. Also we see that the rider base continues to expand, which is promising. The established markets will for sure be, and the online penetration will continue to increase, so the established markets will be an important contributor to growth. If we fail to grow in the established markets, it will be difficult to show very strong growth. I must say that new markets and verticals have shown very promising results to start.

Speaker #3: And that will take some time to get rid of.

Speaker #1: Okay, fair enough. Second question here: with regard to the new localized websites, the scooter and bike categories as well, could you argue that these are sort of the main growth drivers in, let's say, the coming 12 months?

Adrian Elmlund: Okay. Fair enough. Second question here regards to the new localized websites, the scooter and bike categories as well. Could you argue that these are the main growth drivers in, let's say, the coming 12 months, or are they still too small? If not, then what is kind of the main growth driver for the upcoming expansion phase that you mentioned during the presentation?

Speaker #1: We also have the inflation, of course, that will naturally be driving an underlying growth. And also, we see that the rider base continues to expand.

Speaker #1: Or are they still too small? And if not, then what is kind of the main growth driver for the upcoming expansion phase that you mentioned during the presentation?

Speaker #1: Which is promising. But when it comes to so that will the established markets will for sure be and the online pronunciation will continue to increase.

Speaker #3: So, number one is, of course, to defend and grow the current business that we have in the established markets. We hope that the market will recover a little bit, and that we start seeing good signs primarily in some of the markets in Europe, but far from all.

Göran Dahlin: Number one is, of course, to defend and grow the current business that we have in the established markets. We hope that the market will recover a little bit and that we start seeing good signs in some of the markets in Europe, but far from all. We also have the inflation, of course, that will naturally be driving underlying growth. Also, we see that the rider base continues to expand, which is promising. The established markets will for sure be and the online penetration will continue to increase, so the established markets will be an important contributor to growth. If we fail to grow in the established markets, it will be difficult to show very strong growth. I must say that the new markets and the verticals have shown very promising results to start.

Speaker #1: So the established markets will be an important contributor to growth. If we fail to grow in the established markets, it will be difficult to show very strong growth.

Speaker #1: But I must say that new markets and verticals have shown very promising results. To start, so we have good hopes that that will be an important contributor to the growth.

Speaker #3: We also have the inflation, of course, that will naturally be driving underlying growth. And also, we see that the rider base continues to expand.

Göran Dahlin: So we have good hopes that that will be an important contributor to the growth.

Speaker #3: Which is promising. But when it comes to that, the established markets will for sure be, and the online penetration will continue to increase.

Speaker #3: Okay. Last question from my part. Could you give us some. Guidance on or at least thoughts on the private label products here? Could we see beginning could we see growth maybe this year or is it more to be done?

Adrian Elmlund: Okay. Last question from my part. Could you give us some guidance or at least thoughts on the private label products here? Could we see beginning growth maybe this year, or is it more to be done?

Speaker #3: So, the established markets will be an important contributor to growth. If we fail to grow in the established markets, it will be difficult to show very strong growth.

Speaker #1: Yeah. We target to get back to or reach our targets when it comes to growth rates on private label during next year. And from Q1, Q2 next year.

Göran Dahlin: Yeah. We target to get back to or reach our targets when it comes to growth rates on private label during next year and from Q1, Q2 next year. It will take some time. The primary thing here is that we have two things. Hindsight, we have been a little bit too aggressive taking out products. We also experience quite large challenges when introducing new products and replacing old products that have been selling quite well. Even if we are just changing the brand, it is still a new product, and it is treated like a new product by all the search engines. Also our customers sometimes have difficulties understanding that even if we try to guide them, that it is basically the same product. So that has impacted our growth rate quite a lot. We see this for the products that we did early, we see that they have now recovered.

Speaker #3: But I must say that new markets and verticals have shown very promising results to start, so we have good hopes that that will be an important contributor to the growth.

Göran Dahlin: We have good hopes that that will be an important contributor to the growth.

Speaker #1: That's it will take some time. And the primary thing here is that we have two things. We have been a little bit too hindsight.

Speaker #1: Okay, last question from my part. Could you give us some sort of guidance on, or at least your thoughts on, the private label products here?

Adrian Elmlund: Okay. Last question from my part then.

Speaker #1: Could we see the beginning, could we see growth maybe this year, or is there more to be done?

Speaker #1: We've been a little bit too aggressive taking out products. And we also experience quite large challenges when introducing new products and replacing old products that have been selling quite well.

Speaker #3: Yeah. We aim to get back to, or reach, our targets when it comes to growth rates on private label during next year, and from Q1, Q2 next year.

Speaker #1: Even if we're just changing the brand, it's still a new product and it's treated like a new product by all the search engines. And also our customers sometimes have difficulties understanding that even if we try to guide them, that it's basically the same product.

Göran Dahlin: Even if we are just changing the brand, it is still a new product, and it is treated like a new product by all the search engines. Also our customers sometimes have difficulties understanding that even if we try to guide them, that it is basically the same product. So that has impacted our growth rate quite a lot. We see this for the products that we did early, we see that they have now recovered.

Speaker #3: That's it—it will take some time. And the primary thing here is that we have two things. We have been a little bit too hindsight.

Speaker #1: So that has impacted our growth rate quite a lot. We see this for the products that we did early. We see that they have now recovered.

Speaker #3: We've been a little bit too aggressive taking out products. And we also experienced quite large challenges when introducing new products and replacing old products that have been selling quite well.

Speaker #1: But it will take some time before we get back to the growth that we should have in private label.

Göran Dahlin: But it will take some time before we get back to the growth that we should have in private label.

Speaker #3: Even if we're just changing the brand, it's still a new product and it's treated like a new product by all the search engines. Also, our customers sometimes have difficulties understanding that—even if we try to guide them—that it's basically the same product.

Speaker #3: All right. Thank you, Yoram.

Adrian Elmlund: All right. Thank you, Göran.

Speaker #1: Thanks.

Göran Dahlin: Thanks.

Speaker #2: The next question comes from Christian Small from Pareto Securities. Please go ahead.

Operator: The next question comes from Christian Hellman from Pareto Securities. Please go ahead.

Operator: The next question comes from Christian Stahl from Pareto Securities. Please go ahead.

Speaker #3: Good morning, Yoram and Fredrik. And thank you for taking my question. So a couple of months from me here. Firstly, on the VMS drag here, would it be possible to maybe quantify the impact of this?

Christian Hellman: Good morning, Göran and Fredrik, and thank you for taking my question. A couple of ones from me here. Firstly, on the WMS drag here, would it be possible to maybe quantify the impact of this? Considering that, I guess you have quite good visibility in the backlog here since you referred to two days. Would it be possible to quantify this backlog here?

Christian Stahl: Good morning, Göran and Fredrik, and thank you for taking my question. A couple of ones from me here. Firstly, on the WMS drag here, would it be possible to maybe quantify the impact of this? Considering that, I guess you have quite good visibility in the backlog here since you referred to two days. Would it be possible to quantify this backlog here?

Speaker #3: So that has impacted our growth rate quite a lot. We see this for the products that we did early, and we see that they have now recovered.

Speaker #3: I mean, considering that I guess you have quite good visibility in the backlog here since you referred to two days. Would it be possible to quantify this backlog here?

Speaker #3: But it will take some time before we get back to the growth that we should have in Private Label.

Speaker #1: All right. Thank you, Yoram. That was all from me.

Speaker #3: Thanks.

Fredrik Kjellgren: The impact in Q2, I think the primary impact there was on the top line. What we have quantified in the report is that we have a backlog of about two days worth of sales, and that impacts the revenue recognition. We did not manage to ship all the products that were ordered in Q2. That is what we come out with in terms of the quantification of the impact. In addition to that, we did have some impacts on availability in Q2 and also some extra costs. The extra cost was partly included in the transformation cost that we absorbed into. Also part of it impact in the productivity in the warehouse. That is part of the variable cost that you find in Q2.

Speaker #1: The impact sort of in Q2, I think the primary impact that was on the top line and what we have quantified in the report is that we have backlog of about two days' worth of sales.

Speaker #2: The next question comes from Christian Small from Pareto Securities. Please go ahead.

Speaker #1: Good morning, Yoram and Fredrick, and thank you for taking my question. So, a couple of questions from me here. Firstly, on the VMS drag here, would it be possible to maybe quantify the impact of this?

Speaker #1: And that impacts the revenue recognition. So we didn't manage to ship all the products that were sort of ordered in Q2. So that is what we sort of come up with in terms of the quantification sort of of the impact.

Speaker #1: I mean, considering that, I guess you have quite good visibility into the backlog here since you referred to two days of sales. Would it be possible to quantify this backlog here?

Speaker #1: But in addition to that, we did have some impacts on availability in Q2. And also some extra costs. And the extra cost was partly included in the transformation cost that we absorbed in Q2.

Speaker #3: The impact, sort of in Q2, I think the primary impact that was on the top line, what we have quantified in the report, is that we have a backlog of about two days' worth of sales.

Speaker #1: But also part of it impacted the productivity sort of in the warehouse. So that is part of the variable cost that you find sort of in Q2.

Speaker #3: And that impacts the revenue recognition. So we didn't manage to ship all the products that were sort of ordered in Q2. So that is what we sort of come out with in terms of the quantification sort of of the impact.

Speaker #3: Yeah, that's clear. But you don't have any sort of estimate on how you think that how much these two days would have made you in terms of revenue recognition here?

Christian Hellman: Yeah, that is clear. You do not have any sort of estimate on how we think that how much these two days would have made you in terms of revenue recognition here?

Christian Stahl: Yeah, that is clear. You do not have any sort of estimate on how we think that how much these two days would have made you in terms of revenue recognition here?

Speaker #3: But in addition to that, we did have some impacts on availability in Q2, and also some extra costs. The extra cost was partly included in the transformation cost.

Speaker #1: No, no, I see it. So my advice basically just sort of going with the run rate sort of for the cutoff effect between the quarters.

Fredrik Kjellgren: No, that is it.

Christian Hellman: Yeah.

Christian Stahl: Yeah.

Fredrik Kjellgren: My advice, that is basically just going with the run rate for the cutoff effect between the quarters.

Speaker #3: We absorbed it in Q2, but also part of it is impacting the productivity in the warehouse. So that is part of the variable cost that you see in Q2.

Speaker #1: So otherwise, the guidance.

Christian Hellman: Yeah.

Christian Stahl: Yeah.

Fredrik Kjellgren: Otherwise, go with the guidance as well.

Christian Hellman: That is clear. Then on your guidance in terms of the eCom rollout here, just to clarify the guidance here. We should rather expect this to be fully rolled out in Q1 2027, then I guess?

Christian Stahl: That is clear. Then on your guidance in terms of the eCom rollout here, just to clarify the guidance here. We should rather expect this to be fully rolled out in Q1 2027, then I guess?

Speaker #3: That's clear. And then on your guidance in terms of the e-com rollout here, just to clarify that the guidance here. So we should rather expect this to be fully rolled out in Q1, 27, and I guess.

Speaker #1: Yeah, that's clear. But you don't have any sort of estimate on how we should think about how much these two days would have made you in terms of revenue recognition here?

Speaker #1: Yes. That's correct.

Göran Dahlin: Yes, that is correct.

Speaker #3: No, no, that is it. So my advice might basically just be to go in with the run rate for the cutoff effect between the quarters.

Speaker #3: Yeah. Understood. And then you referred to a couple of large markets here. With the rolling out the e-com. Here in preparation for the, yeah, high sales and which markets are you referring to here in specifically?

Christian Hellman: Understood. Then you referred to a couple of large markets here with the rolling out the eCom site here in preparation for the high season. Which markets are you referring to here specifically? Are these markets that you will be maybe one quarter with?

Christian Stahl: Understood. Then you referred to a couple of large markets here with the rolling out the eCom site here in preparation for the high season. Which markets are you referring to here specifically? Are these markets that you will be maybe one quarter with?

Speaker #1: Yeah.

Speaker #3: So the guidance, I'm sorry.

Speaker #1: Yeah, that's clear. And then, on your guidance in terms of the e-com rollout here, just to clarify that guidance—so we should rather expect this to be fully rolled out in Q1 '27, I guess.

Speaker #3: Are these markets that you're waiting maybe one quarter with?

Speaker #1: Yeah, we're not specifying that. But it's the largest markets that we have.

Göran Dahlin: We are not specifying that, but it is the largest markets that we have.

Speaker #3: Okay. That's clear. And then finally on follow-up on the mountain bike and scooter, vertical here, could you give some indication on either how much this vertical is growing year over year or maybe in terms of absolutes, how much sales do you see here?

Christian Hellman: Okay. That is clear. Then finally on follow-up on the mountain bike and scooter vertical here. Could you give some indication on either how much this vertical is growing year over year or maybe in terms of absolutes, how much sales this year?

Christian Stahl: Okay. That is clear. Then finally on follow-up on the mountain bike and scooter vertical here. Could you give some indication on either how much this vertical is growing year over year or maybe in terms of absolutes, how much sales this year?

Speaker #3: Yes. That's correct.

Speaker #1: Yeah, understood. And then you referred to a couple of large markets you want to weight here. With the rollout of the e-com sites in preparation for the high sales, which markets are you referring to here specifically?

Speaker #1: Are these markets that you're weighting maybe one quarter with?

Speaker #1: It's very early. So in Q2, the new markets and the new verticals were quite young, so to speak, babies. But yeah, we are it looks very promising.

Göran Dahlin: It is very early. So in Q2, the new markets and the new verticals were quite young, so to speak, babies. We are, it looks very promising, but we are not giving specific quantifications of it yet. I think it is a little bit too early to do that. It is so young still. As we said, we are very satisfied with the beginning.

Speaker #3: Yeah, we're not specifying that, but it's the largest markets that we have.

Speaker #1: Okay. That's clear. And then finally on follow-up. Or on follow-up on the mountain bike and scooter. Vertical here, could you give some indication on either how much this vertical is growing year over year?

Speaker #1: But we're not giving we're not giving specific quantifications of it. Yeah, then I think it's a little bit too early to do that. I mean, it's so young still.

Speaker #1: Or maybe in terms of absolutes, how much sales do you see here?

Speaker #1: But yeah, as we said, we're very satisfied with the beginning.

Speaker #3: It's very early. So, in Q2, the new markets and the new verticals were quite young—so to speak, babies. But yeah, it looks very promising.

Speaker #3: Yeah, that's clear. And I think you previously talked about that you are looking to hire new people to make these vertical grow even more.

Christian Hellman: That is clear. I think you previously talked about that you are looking to hire new people to make this vertical grow even more. How is that progressing with expanding both in-house personnel in that vertical and so on?

Christian Stahl: That is clear. I think you previously talked about that you are looking to hire new people to make this vertical grow even more. How is that progressing with expanding both in-house personnel in that vertical and so on?

Speaker #3: I mean, how is that progressing with the expanding both in terms of personnel in that vertical and so on?

Speaker #1: Yeah. Sorry, Christian. I could not catch you. Can you repeat the question?

Speaker #3: But we're not giving—we're not giving specific quantifications of it. Yeah. And I think it's a little bit too early to do that. I mean, it's still so young.

Göran Dahlin: Sorry, Christian, I could not catch you. Can you repeat the question?

Speaker #3: All right. So within the mountain bike call, I think you've guided for previously that you're looking to hire new employees in this vertical to do more.

Christian Hellman: Sorry. So within the mountain bike hub, I think you have guided for previously that you are looking to hire new employees in this vertical to do more. How is that looking right now?

Christian Stahl: Sorry. So within the mountain bike hub, I think you have guided for previously that you are looking to hire new employees in this vertical to do more. How is that looking right now?

Speaker #3: But yeah, as we said, we're very satisfied with the beginning.

Speaker #3: How are you looking how is that looking right now?

Speaker #1: Yeah, that's clear. And I think you previously mentioned that you are looking to hire new people to help these verticals grow even more.

Göran Dahlin: It is not necessary for us to hire any new personnel for this. We have the people we need. This is one of the, how should I say, beauties with our business model, operating model, that it requires very little resources for us to add a thing like mountain bikes. Actually, on mountain bikes, we have half a person that is dedicated to that, a category manager, and then we have 20% of a purchaser and 20% of a product data manager. For the rest of the marketing team, et cetera, we are talking percentages of their working time. It is the same when we add new markets. It is very little extra efforts required from us, especially since we are utilizing AI translations completely. With the new tech stack that we have, previously, it was impossible for us to enter new markets.

Speaker #1: We're actually not it's not necessary for us to hire any new personnel for this. We have the people we need. And this is one of the how should I say, beauties with our business model or operating model that it requires very little resources for us to add a thing like mountain bike.

Speaker #1: I mean, how is that progressing with the expansion, both in terms of personnel in that vertical and so on?

Speaker #3: Yeah, sorry, Christian. I couldn't catch you. Could you repeat the question?

Speaker #1: All right. So within the mountain bike and scooter vertical, I think you've previously guided that you're looking to hire new employees in this vertical to grow it even more.

Speaker #1: Actually, on mountain bike, we have a half a person that's dedicated to that. Category manager. And then we have 20% of the purchaser and 20% of the product data manager.

Speaker #1: How are you looking? How is that looking right now?

Speaker #1: And for the rest of the marketing team, etc., we're talking percentages of their working time. So we are and it's the same when we add new markets.

Speaker #3: We're actually not—it's not necessary for us to hire any new personnel for this. We have the people we need. And this is one of the, how should I say, beauties with our business model or operating model, that it requires very few resources for us to add a thing like mountain bike.

Speaker #1: It is very little extra efforts required from us, especially since we are utilizing AI translations completely. So with the new tech stack that we have, previously it was impossible for us to enter new markets.

Speaker #3: Actually, on mountain bike, we have half a person that's dedicated to that—category manager. Then we have 20% of a purchaser and 20% of a product data manager.

Speaker #1: The tech stack was so unstable that we could not risk meddling with the databases, etc. So but now when we have the new stack, we are able to launch these markets.

Göran Dahlin: The tech stack was so unstable that we could not risk meddling with the databases, et cetera. Now when we have the new stack, we are able to launch these markets, and we hope to be able to launch even more markets going forward. Right now, we are on 29 European markets. We are very glad that we have been able to take that step.

Speaker #3: And for the rest of the marketing team, etc., we're talking percentages of their working time. So we are, and it's the same when we add new markets.

Speaker #1: And we hope to be able to launch even more markets going forward. But right now, we are on 29 European markets, very glad that we have been able to take that step.

Speaker #3: It requires very little extra effort from us, especially since we are utilizing AI translations completely. So, with the new tech stack that we have, previously it was impossible for us to enter a new market.

Speaker #3: Okay, perfect. That was all from me. Thank you guys.

Christian Hellman: Okay, perfect. That was all from me. Thank you, guys.

Christian Stahl: Okay, perfect. That was all from me. Thank you, guys.

Speaker #1: Thanks, Christian. Thank you.

Göran Dahlin: Thanks, Christian.

Fredrik Kjellgren: Thank you.

Speaker #2: There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Operator: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Speaker #3: The tech stack was so unstable that we could not risk meddling with the databases, etc. But now, with the new stack, we are able to launch these markets.

Göran Dahlin: Thank you. Fredrik and I would like to say thank you for listening, and we wish you a great Friday.

Speaker #3: And we hope to be able to launch even more markets going forward. But right now, we are in 29 European markets, and we are very glad that we have been able to take that step.

Speaker #1: Okay, perfect. That was all from me. Thank you, guys.

Speaker #3: Thanks, Christian. Thank you.

Speaker #2: There are no more questions at this time, so I will hand the conference back to the speakers for any closing comments.

Speaker #3: Thank you. So Frederick and I would like to say thank you for listening. And we wish you a great Friday.

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Q2 2026 Pierce Group AB (publ) Earnings Call

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