Q2 2026 Kid ASA Earnings Call

August 20, 2026

Speaker #1: Morning, everyone, and welcome to our presentation of Q2. I'm Marianne Fullford, CEO at QID, and with me today I have Mats Keegan, CFO at QID.

Speaker #1: And we will walk you through the presentation together. We deliver a solid Q2, driven by strong development across both QID and Hemtex. We deliver strong sales growth across both online and physical stores.

Speaker #1: This despite a negative Easter calendar effect in no way. Growth was driven by a highly commercial seasonal assortment and an increase in the number of transacting customers.

Marianne Fulford: We delivered a solid Q2, driven by strong development across both KID and Hemtex. We delivered strong sales growth across both online and physical stores. This despite a negative Easter calendar effect in Norway. Growth was driven by a highly commercial seasonal assortment and an increase in the number of transacting customers. The solid online growth continued through the Q2, and online revenues increased significantly. Online growth was driven by positive development across both KID and Hemtex. We also delivered a solid growth in EBITDA and a strong growth margin in the quarter.

Marianne Fulford: We delivered a solid Q2, driven by strong development across both Kid and Hemtex. We delivered strong sales growth across both online and physical stores. This despite a negative Easter calendar effect in Norway. Growth was driven by a highly commercial seasonal assortment and an increase in the number of transacting customers. The solid online growth continued through the Q2, and online revenues increased significantly. Online growth was driven by positive development across both Kid and Hemtex. We also delivered a solid growth in EBITDA and a strong growth margin in the quarter.

Speaker #1: We delivered a solid Q2, driven by strong development across both KID and Hemtex. We achieved strong sales growth across both online and physical stores.

Speaker #1: The solid online growth continues through Q2, and online revenues increased significantly. Online growth was driven by positive development across both QID and Hemtex. We also delivered a solid growth in EBITDA and a strong gross margin in the quarter.

Speaker #1: This was despite a negative Easter calendar effect in Norway. Growth was driven by a highly commercial seasonal assortment and an increase in the number of transacting customers.

Speaker #1: Overall, costs were in line with our expectations, as the business grew, we continued to invest in marketing, technology, and commercial initiatives, while maintaining good cost control.

Speaker #1: The solid online growth continued through Q2, and online revenues increased significantly. Online growth was driven by positive developments across both KID and Hemtex. We also delivered solid growth in EBITDA and a strong gross margin in the quarter.

Speaker #1: Several of these investments are designed to support future growth opportunities, improve customer experience, and increase operational efficiency over time. Mats will walk you through the cost drivers in more detail later.

Speaker #1: Overall, costs were in line with our expectations. As the business grew, we continued to invest in marketing, technology, and commercial initiatives, while maintaining good cost control.

Marianne Fulford: Overall, costs were in line with our expectations. As the business grew, we continued to invest in marketing, technology, and commercial initiatives while maintaining good cost control. Several of these investments are designed to support future growth opportunities, improve customer experience, and increase operational efficiency over time. Mads, he will walk you through the cost drivers in more details later. Let's take a closer look at the operational highlights from the quarter.

Speaker #1: So let's take a closer look at operational highlights from the quarter. First of all, Q2 was negatively affected by the timing of Easter, which has a greater impact on sales in the Norwegian market.

Speaker #1: Several of these investments are designed to support future growth opportunities, improve customer experience, and increase operational efficiency over time. Mats, he will walk you through the cost drivers in more detail later.

Speaker #1: So considering the Easter timing effect, we are more than satisfied with the revenue performance this quarter. Category development continues, and we remain an important driver of customer traffic and sales growth.

Marianne Fulford: First of all, Q2 was negatively affected by the timing of Easter, which has a greater impact on sales in the Norwegian market. So considering the Easter timing effect, we are more than satisfied with the revenue performance this quarter. Category development continues and remain an important driver of customer traffic and sales growth. Our focus is to continue growing our major categories while developing new opportunities alongside them. During the quarter, we delivered a solid growth in both the established major categories, particular bed linen, and also in new categories. We also know that new product groups contributed to growth in existing categories.

Speaker #1: Our focus is to continue growing our major categories, while developing new opportunities alongside them. During the quarter, we delivered a solid growth in both the established major categories particular bed linen, and also in new categories.

Speaker #1: So, considering the Easter timing effect, we are more than satisfied with the revenue performance this quarter. Category development continues and remains an important driver of customer traffic and sales growth.

Speaker #1: We also note that new product groups contribute to growth in existing categories. Selected permanent low-price products across major categories performed well and supported customer traffic during the quarter.

Speaker #1: Our focus is to continue growing our major categories while developing new opportunities alongside them. During the quarter, we delivered solid growth in both the established major categories, particularly bedlinen, and also in new categories.

Speaker #1: New categories introduced since 2022 performed well and grew by 25.7%, including furniture, categories under the revised definition. And to help you clarify, from 2026 new categories was expanded to also include all furniture.

Marianne Fulford: Selected permanent low price products across major categories performed well and supported customer traffic during the quarter. New categories introduced since 2022 performed well and grew by 25.7%, including furniture categories under the revised definition. To help to clarify, from 2026, new categories was expanded to also include all furniture. Outdoor and garden furniture had not previously been included but will be a key strategic focus within our furniture category this year and also going forward.

Speaker #1: New categories introduced since 2022 performed well and grew by 25.7%, including furniture and categories under the revised definition. And to help clarify, from 2026, new categories were expanded to also include all furniture.

Speaker #1: Outdoor and garden furniture had not previously been included, but will be a key strategic focus within our furniture category this year, and also going forward.

Speaker #1: And therefore, the revised definition provides a more representative view of our new category growth initiatives. We saw a very strong performance in our seasonal categories this quarter.

Speaker #1: Outdoor and garden furniture had not previously been included, but will be a key strategic focus within our furniture category this year and going forward.

Speaker #1: So I'd like to spend a few minutes giving you some more insight into our assortment, an era I'm personally very passionate about, and closely involved in, together with our fantastic product development team.

Speaker #1: And therefore, the revised definition provides a more representative view of our new category growth initiatives. We saw very strong performance in our seasonal categories this quarter.

Marianne Fulford: Therefore, the revised definition provides a more representative view of our new category growth initiatives. We saw a very strong performance in our seasonal categories this quarter. I'd like to spend a few minutes giving you some more insight into our assortment, an area I'm personally very passionate about and closely involved in together with our fantastic product development team, and I mean fantastic.

Speaker #1: And I mean fantastic. Outdoor furniture has been a strategic growth category this year, and delivered particularly strong growth. It's driven by a new and expanded assortment and earlier product availability.

Speaker #1: So, I'd like to spend a few minutes giving you some more insight into our assortment—an area I'm personally very passionate about and closely involved in, together with our fantastic product development team.

Speaker #1: Many of this year's new products sold out early, demonstrating strong commercial appeal, effective pricing, and significant growth potential going forward. The image highlights a selection of our new product launches this year.

Speaker #1: And I mean fantastic. Outdoor furniture has been a strategic growth category this year and delivered particularly strong growth. It's driven by a new and expanded assortment, and earlier product availability.

Marianne Fulford: Outdoor furniture has been a strategic growth category this year and delivered particularly strong growth, is driven by a new and expanded assortment and earlier product availability. Many of this year's new products sold out early, demonstrating strong commercial appeal, effective pricing, and significant growth potential going forward. The image highlights a selection of our new product launches this year. Bathroom has also been a strategic growth category over the past years and continued to perform well in Q2. The category has now become one of the four largest categories in Kid Group. This season, we have expanded our bathroom category with lots of new products that naturally complement beach towels and outdoor summer living, such as picnic products, beach toys, parasols, and more.

Speaker #1: Bathroom has also been a strategic growth category over the past years, and continued to perform well in Q2. The category has now become one of the four largest categories in QID Group, and this season we have expanded our bathroom category with lots of new products that naturally complement beach towels and outdoor summer living.

Speaker #1: Bathroom has also been a strategic growth category over the past years and continued to perform well in Q2. The category has now become one of the four largest categories in KID Group, and this season we have expanded our bathroom category with lots of new products that naturally complement beach towels and outdoor summer living.

Speaker #1: Such as picnic products, beach toys, parasols, and more. And the initiative had been has been a great success and proves that new product groups also increase the sale of existing products in this case, towels.

Speaker #1: And previously we have seen the same development within the kitchen category. Logistically, we are back on track. Our warehouse operations are now stable, product availability is high, and efficiency continues to improve.

Speaker #1: Such as picnic products, beach toys, parasols, and more. And the initiative has been a great success and proves that new product groups also increase the sale of existing products, in this case, towels.

Marianne Fulford: The initiative has been a great success and proves that new product groups also increase the sale of existing products, in this case, towels. Previously, we have seen the same development within the kitchen category. Logistically, we are back on track. Our warehouse operations are now stable, product availability is high, and efficiency continues to improve. As we complete the remaining system replacement, further efficiency improvements are expected over time. The logistical challenges from 2025 did not have any impact on revenues in this quarter. The modernization of our system portfolio is also progressing according to plan. During the quarter, we completed the rollout of a new POS, point of sale system across all our stores and markets well ahead of peak season. I will get back to it later.

Speaker #1: And as we complete the remaining system replacement, further efficiency improvements are expected over time. The logistical challenges from 2025 did not have any impact on revenues in this quarter.

Speaker #1: And previously, we have seen the same development within the kitchen category. Logistically, we are back on track. Our warehouse operations are now stable, product availability is high, and efficiency continues to improve.

Speaker #1: The modernization of our system portfolio is also progressing according to plan. During the quarter, we completed the rollout of a new POS point of sale system across all our stores and markets, well ahead of peak season.

Speaker #1: I'll get back to it later. Hemtex launched its first store online outside Scandinavia and the Baltics during Q2. Hemtex.de went live on May 5 and right now the most exciting part is observing and learning.

Speaker #1: The modernization of our system portfolio is also progressing according to plan. During the quarter, we completed the rollout of a new POS (point-of-sale) system across all our stores and markets, well ahead of peak season.

Speaker #1: Who is shopping on the site, their age, where they live, and what they are buying. We can already reveal that bed linens stands out as the largest product category, and that having the right price point is key.

Speaker #1: I'll get back to it later. Hemtex launched its first online store outside Scandinavia and the Baltics during Q2. Hemtex.de went live on May 5, and right now the most exciting part is observing and learning.

Marianne Fulford: Hemtex launched its first store online outside Scandinavia and the Baltics during Q2. Hemtex.de went live on 5 May, and right now the most exciting part is observing and learning who is shopping on the site, their age, where they live, and what they are buying. We can already reveal that bed linen stands out as the largest product category and that having the right price point is key. Loyalty club membership is growing every day, and we look forward to keeping you updated as we learn more along the way. The launch of Hemtex.com will find place later in 2026 based on learnings from the Hemtex.de launch and our desire to make a few improvements before going live.

Speaker #1: Loyalty club membership is growing every day, and we look forward to keeping you updated as we learn more along the way. The launch of Hemtex.com will find place later in 2026, based on learnings from the Hemtex.de launch.

Speaker #1: Who is shopping on the site, their age, where they live, and what they are buying. We can already reveal that bedlinen stands out as the largest product category, and that having the right price point is key.

Speaker #1: And our desire to make a few improvements before going live. The delay is only short term, and we remain confident in the plan. Store portfolio development continues.

Speaker #1: Loyalty club membership is growing every day, and we look forward to keeping you updated as we learn more along the way. The launch of Hemtex.com will take place later in 2026, based on learnings from the Hemtex.de launch.

Speaker #1: Four store projects were completed, one extended store was opened and three stores closed during Q2. Our new country manager for Hemtex started May 1.

Speaker #1: And our desire to make a few improvements before going live. The delay is only short term, and we remain confident in the plan. Store portfolio development continues.

Marianne Fulford: The delay is only short-term, and we remain confident in the plan. Store portfolio development continues. Four store projects were completed, one extended store was opened, and three stores closed during Q2. Our new country manager for Hemtex started 1 May. His primary focus will be on building a much stronger sales culture in our stores and accelerate like-for-like growth in Hemtex. We continue to modernize our system landscape in line with plan. System modernization is crucial for our future growth and ambitions going forward. A number of system changes and improvements have been implemented over the last 2, 3 years, and further ones are planned.

Speaker #1: His primary focus will be on building a much stronger sales culture in our stores, and accelerate like-for-like growth in Hemtex. We continue to modernize our system landscape, in line with plan.

Speaker #1: Four store projects were completed, one extended store was opened, and three stores closed during Q2. Our new Country Manager for Hemtex started May 1.

Speaker #1: System modernization is crucial for our future growth and ambitions going forward. A number of system changes and improvements have been implemented over the last 2 or 3 years, and further ones are planned.

Speaker #1: His primary focus will be on building a much stronger sales culture in our stores and accelerating like-for-like growth in Hemtex. We continue to modernize our system landscape, in line with plan.

Speaker #1: We have already completed much of the system renewal through the warehouse project, by shifting to improved core systems for logistics sourcing and supply chains operations.

Speaker #1: And during Q2, we completed the rollout of a new point of sale system across all stores, and markets. This has been a major project, and a busy period for the organization.

Speaker #1: We have already completed much of the system renewal through the warehouse project, by shifting to improved core systems for logistics, sourcing, and supply chain operations.

Marianne Fulford: We have already completed much of the system renewal through the warehouse project by shifting to improved core systems for logistics, sourcing, and supply chains operations. During Q2, we completed the rollout of a new point-of-sale system across all stores and markets. This has been a major project and a busy period for the organization, most of all for our stores. At the same time, we maintained focus on day-to-day operations and our customers and delivered a quarter with solid sales growth. The system supporting our stores are now fully implemented, and we are entering the peak season from a strong position.

Speaker #1: Most of all for our stores. But at the same time, we maintain focus on day-to-day operations and our customers, and delivered a quarter with solid sales growth.

Speaker #1: And during Q2, we completed the rollout of a new point-of-sale system across all stores and markets. This has been a major project and a busy period for the organization.

Speaker #1: The system supporting our stores are now fully implemented, and we are entering the peak season from a strong position. Over the past year, we have also strengthened our e-commerce organization.

Speaker #1: Most of all for our stores. But at the same time, we maintained focus on day-to-day operations and our customers, and delivered a quarter with solid sales growth.

Speaker #1: By bringing in new capabilities, an expertise to support our future omni-growth. We have upgraded our website, created a more inspiring and seamless customer shopping experience, and at the same time, we continue to invest in the development of our customer loyalty program.

Speaker #1: The systems supporting our stores are now fully implemented, and we are entering the peak season from a strong position. Over the past year, we have also strengthened our e-commerce organization.

Marianne Fulford: Over the past year, we have also strengthened our e-commerce organization by bringing in new capabilities and expertise to support our future omni-growth. We have upgraded our website, created a more inspiring and seamless customer shopping experience, and at the same time, we continue to invest in the development of our customer loyalty program. Together, these initiatives help ensure that we meet our customers' expectations and stay ahead as customer behavior and shopping habits continue to evolve. We are now in the final phase of our system renewal program, and remaining initiatives will be completed progressively.

Speaker #1: Together these initiatives help ensure that we meet our customers' expectations, and stay ahead as customer behavior and shopping habits continue to evolve. We are now in the final phase of our system renewal program, and remaining initiatives will be completed progressively.

Speaker #1: By bringing in new capabilities and expertise to support our future omnigrowth, we have upgraded our website, created a more inspiring and seamless customer shopping experience, and, at the same time, we continue to invest in the development of our customer loyalty program.

Speaker #1: Once all systems are fully in place, we can realize even greater efficiency gains from many of these investments. Now, Mats will walk you through the financials.

Speaker #1: Together, these initiatives help ensure that we meet our customers' expectations and stay ahead as customer behavior and shopping habits continue to evolve. We are now in the final phase of our system renewal program, and the remaining initiatives will be completed progressively.

Speaker #2: Thank you, Marianne. And good morning, everyone. First of all, the Q2 represents a robust development in 2026. In Q2, we see a stable and normalized warehouse capacity supporting execution and underlining performance is developing well.

Speaker #1: Once all systems are fully in place, we can realize even greater efficiency gains for many of these investments. Now, Mats will walk you through the financials.

Marianne Fulford: Once all systems are fully in place, we can realize even greater efficiency gains from many of these investments. Mads will walk you through the financials.

Speaker #2: I will walk you through the financial performance and key drivers for this quarter. Group revenue reported increased by 6.8% to 914.8 million in the Q2.

Mads Kigen: Thank you, Marianne, and good morning, everyone. First of all, the Q2 represents a robust development in 2026. In Q2, we see a stable and normalized warehouse capacity supporting execution and underlying performance is developing well. I will walk you through the financial performance and key drivers for this quarter. Group revenue reported increased by 6.8% to NOK 914.8 million in the Q2. The result is positively driven by both Kid Interior and Hemtex. In constant currency, the growth was 9.1% with a like-for-like growth of 8.3%, including online sales. I will come back to highlights for the segments shortly. Online was a key growth driver with a growth of close to 43% year-on-year and an increased online share to 15.9% and 20.4%, including Click and Collect.

Speaker #2: Thank you, Marianne. And good morning, everyone. First of all, the Q2 results represent a robust development in 2026. In Q2, we see a stable and normalized warehouse capacity supporting execution, and underlying performance is developing well.

Speaker #2: The result is positively driven by both QID in terror and Hemtex. In constant currency, the growth was 9.1%, with a like-for-like growth of 8.3%, including online sales.

Speaker #2: I will walk you through the financial performance and key drivers for this quarter. Group revenue increased by 6.8% to NOK 914.8 million in Q2.

Speaker #2: I will come back to highlights for the segments shortly. Online was a key growth driver, with a growth of close to 43% year on year, and an increased online share to 15.9% and 20.4%, including click and collect.

Speaker #2: The result is positive, driven by both KID Interior and Hemtex. In constant currency, the growth was 9.1%, with like-for-like growth of 8.3%, including online sales.

Speaker #2: I will come back to highlights for the segments shortly. Online was a key growth driver, with growth of close to 43% year on year, and an increased online share to 15.9%, and 20.4% including click and collect.

Speaker #2: I would also like to point out that like-for-like stores in Hemtex performed well with 6.9% growth compared to Q2 last year. This development proves both strong customer demand and well execution across channels.

Speaker #2: In terms of categories, we observe a positive underlying development across all our categories, and I would like to point out that bed linen, bathroom, and outdoor furniture supported by strong sales of seasonal assortments from spring and summer, as already mentioned.

Speaker #2: I would also like to point out that like-for-like stores in Hemtex performed well, with 6.9% growth compared to Q2 last year. This development proves both strong customer demand and solid execution across channels.

Mads Kigen: I would also like to point out that like-for-like stores in Hemtex performed well with 6.9% growth compared to Q2 last year. This development proves both strong customer demand and well execution across channels. In terms of categories, we observe a positive underlying development across all our categories, and I would like to point out that bed linen, bathroom, and outdoor furniture, supported by strong sales or seasonal assortments from spring and summer, as already mentioned. Kid Interior performed well with a total revenue growth of 7.1% and a like-for-like growth of 6.7%. The revenue development is driven up by increased number of transacting customers in the online channel and physical stores, partly offset by a slight negative contribution from basket size due to the product mix in our physical stores.

Speaker #2: QID interior performed well with a total revenue growth of 7.1% and a like-for-like growth of 6.7%. The revenue development is driven up by increased number of transacting customers in the online channel, and physical stores partly offset by a slight negative contribution from basket size, due to the product mix in our physical stores.

Speaker #2: In terms of categories, we observe a positive underlying development across all our categories, and I would like to point out that bedlinen, bathroom, and outdoor furniture were supported by strong sales of seasonal assortments from spring and summer, as already mentioned.

Speaker #2: KID Interior performed well, with total revenue growth of 7.1% and like-for-like growth of 6.7%. The revenue development is driven by an increased number of transacting customers in the online channel and physical stores, partly offset by a slight negative contribution from basket size due to the product mix in our physical stores.

Speaker #2: Easter had a negative timing effect this year in this quarter, particularly in Norway, compared with the group's other markets. Q2 includes one additional shopping day on group level, compared to last year, and is explained by Norway.

Speaker #2: But please note that the distribution and value of these days vary somewhat across segments due to bank holidays. Hemtex delivered a reported total growth of 6.3%, measured in NOC, during the quarter.

Speaker #2: Easter had a negative timing effect this year in this quarter, particularly in Norway, compared with the group's other markets. Q2 includes one additional shopping day at the group level compared to last year, which is explained by Norway.

Mads Kigen: Easter had a negative timing effect this year in this quarter, particularly in Norway, compared with the group's other markets. Q2 includes one additional shopping day on group level compared to last year and is explained by Norway. Please note that the distribution and value of these days varies somewhat across segments due to bank holidays. Hemtex delivered a reported total growth of 6.3% measured in NOK during the quarter. As previous quarter, currency had a significant impact on the reported figures. Although this time in the opposite direction compared with recent periods.

Speaker #2: As previous quarter, currency had a significant impact on the reported figures, although this time in the opposite direction compared with recent periods. Measured on a constant currency basis, the total revenue growth was increased by robust 12.5%, supported by strong development in both physical stores and online sales.

Speaker #2: But please note that the distribution and value of these days vary somewhat across segments due to bank holidays. Hemtex delivery reported total growth of 6.3%, measured in NOK during the quarter.

Speaker #2: As in the previous quarter, currency had a significant impact on the reported figures, although this time in the opposite direction compared with recent periods. Measured on a constant currency basis, the total revenue growth increased by a robust 12.5%, supported by strong development in both physical stores and online sales.

Speaker #2: The development is positively impacted by an increased number of transacting customers in physical stores and online, and increased basket size, across both sales channels.

Mads Kigen: Measured on a constant currency basis, the total revenue growth was increased by a robust 12.5%, supported by strong development in both physical stores and online sales. The development is positively impacted by an increased number of transacting customers in physical stores and online, and increased basket size across both sales channels. To summarize, for the group, the underlying development in the quarter was robust with a revenue growth of 9.1% in constant currency.

Speaker #2: To summarize, for the group, the underlying development in the quarter was robust, with a revenue growth of 9.1% in constant currency. Group gross margin increased by 0.9 percentage points to 63.2 in the Q2.

Speaker #2: The development is positively impacted by an increased number of transacting customers in physical stores and online, as well as increased basket size across both sales channels.

Speaker #2: Reflecting a solid gross margin development across the group. The improvement was primarily driven by a lower share of freight cost in the cost of goods sold, and favorable currency effects compared with last year.

Speaker #2: To summarize, for the group, the underlying development in the quarter was robust, with revenue growth of 9.1% in constant currency. Group gross margin increased by 0.9 percentage points to 63.2% in Q2.

Speaker #2: Both segments contributed positively. QID interior delivered an improved margin, impacted by freight currency and mix effects, while Hemtex showed a stronger margin, improvement year on year, with less negative effect, from Hemtex 24H and franchise this year.

Mads Kigen: Group gross margin increased by 0.9 percentage points to 63.2% in Q2, reflecting a solid gross margin development across the group. The improvement was primarily driven by a lower share of freight cost in the Cost of Goods Sold and favorable currency effects compared with last year. Both segments contributed positively. Kid Interior delivered an improved margin impacted by freight, currency, and mix effects, while Hemtex showed a stronger margin improvement year-on-year with less negative effect from Hemtex24h and Franchise this year.

Speaker #2: Reflecting a solid gross margin development across the group. The improvement was primarily driven by a lower share of freight costs in the cost of goods sold and favorable currency effects compared with last year.

Speaker #2: Both segments contributed positively. KID Interior delivered an improved margin, impacted by freight, currency, and mix effects, while Hemtex showed a stronger margin improvement year on year, with less negative effect from Hemtex 24H and franchise this year.

Speaker #2: Please note that with during the Q2 has seen elevated freight rates, as a consequence of the global situation, including unrest in the Middle East, which may negatively impact margins going forward.

Speaker #2: Summarize the group gross margin of 63.2% for Q2 is considered robust in a historical perspective, and is well in line with our financial objectives.

Speaker #2: Please note that during Q2, we have seen elevated freight rates as a consequence of the global situation, including unrest in the Middle East, which may negatively impact margins going forward.

Mads Kigen: Please note that we, during Q2, have seen elevated freight rates as a consequence of the global situation, including unrest in the Middle East, which may negatively impact margins going forward. To summarize, the group gross margin of 63.2% for Q2 is considered robust in a historical perspective and is well in line with our financial objectives. Reported operating expenses increased by 5.4% in the quarter from last year. The development is driven by marketing activity, bonus accruals, and IT investments, partly offset by currency.

Speaker #2: Reported operating expenses increased by 5.4% in the Q2 from last year. The development is driven by marketing activity, bonus accruals, and IP investments. Partly offset by currency.

Speaker #2: The group gross margin of 63.2% for Q2 is considered robust from a historical perspective and is well in line with our financial objectives.

Mads Kigen: To summarize, the group gross margin of 63.2% for Q2 is considered robust in a historical perspective and is well in line with our financial objectives. Reported operating expenses increased by 5.4% in the quarter from last year. The development is driven by marketing activity, bonus accruals, and IT investments, partly offset by currency. Employee benefit expenses increased by NOK 5.8 million on a constant currency basis. The increase mainly reflects annual general salary increases and higher working hours in larger and new stores, in addition to increased bonus accruals following the strong H1 performance. These effects were partly offset by lower logistic staffing as a higher share of workforce was sourced externally compared with last year. We have control in terms of number of work hours in our stores.

Speaker #2: Employee benefit expenses increased by 5.8 million, on a constant currency basis. The increase mainly reflects annual general salary increases and higher working hours in larger and new stores, in addition to increased bonus accruals following the strong first half performance.

Speaker #2: Reported operating expenses increased by 5.4% in Q2 from last year. The development is driven by marketing activity, bonus accruals, and IT investments, partly offset by currency.

Speaker #2: These effects were partly offset by lower logistic staffing, as a higher share of workforce was sourced externally, compared with last year. We have control in terms of number of worked hours in our stores, an increase is affected by our new stores, larger stores, and the store project activity, which is all initiatives that will drive future growth.

Speaker #2: Employee benefit expenses increased by $5.8 million on a constant currency basis. The increase mainly reflects annual general salary increases and higher working hours in larger and new stores, in addition to increased bonus accruals following the strong first half performance.

Mads Kigen: Employee benefit expenses increased by NOK 5.8 million on a constant currency basis. The increase mainly reflects annual general salary increases and higher working hours in larger and new stores, in addition to increased bonus accruals following the strong H1 performance. These effects were partly offset by lower logistic staffing as a higher share of workforce was sourced externally compared with last year. We have control in terms of number of work hours in our stores. An increase is affected by our new stores, larger stores, and the store project activity, which is all initiatives that will drive future growth.

Speaker #2: These effects were partly offset by lower logistic staffing, as a higher share of the workforce was sourced externally compared with last year. We have control in terms of the number of worked hours in our stores; an increase is affected by our new stores, larger stores, and the store project activity, which are all initiatives that will drive future growth.

Speaker #2: Other operating expenses increased by 20.8 million, on a constant currency basis. The increase is attributed to a strong performance and higher activity levels, a larger store portfolio in terms of space, higher marketing investments, and logistics costs.

Mads Kigen: An increase is affected by our new stores, larger stores, and the store project activity, which is all initiatives that will drive future growth.

Speaker #2: In addition, exceptional strong online sales continue to drive higher last-mile distribution, this quarter. The operation is the warehouse in Sweden is supported by a higher share of external workforce, compared to last year.

Speaker #2: Other operating expenses increased by NOK 20.8 million on a constant currency basis. The increase is attributed to strong performance and higher activity levels, a larger store portfolio in terms of space, higher marketing investments, and increased logistics costs.

Mads Kigen: Other operating expenses increased by NOK 20.8 million on a constant currency basis. The increase is attributed to a strong performance and higher activity levels, a larger store portfolio in terms of space, higher marketing investments, and logistics costs. In addition, exceptional strong online sales continue to drive higher Last-Mile Distribution this quarter. The warehouse in Sweden is supported by a higher share of external workforce compared to last year. The hours are linked to volumes distributed to our stores and following the online revenue development. Please note that the external workforce is booked as other OPEX, representing a temporary line shift which gradually will be hired and presented as employee benefit expenses going forward, combined with external workforce to handle peak periods.

Speaker #2: The hours are linked to volumes distributed to our stores, and following the online revenue development. Please note that the external workforce is booked as other OPEX, representing an temporary line shift with which gradually will be hired and presented as employee benefit expenses going forward.

Speaker #2: In addition, exceptionally strong online sales continue to drive higher last-mile distribution this quarter. The operation at the warehouse in Sweden is supported by a higher share of external workforce compared to last year.

Speaker #2: Combined with external workforce to handle peak periods. Finally, currency effects had impact on the reported OPEX base in this quarter, from translating sec to NOC, explaining 8 million.

Speaker #2: The hours are linked to volumes distributed to our stores and follow the online revenue development. Please note that the external workforce is booked as other OPEX, representing a temporary line shift, which gradually will be hired and presented as employee benefit expenses going forward.

Speaker #2: Overall, the OPEX sales ratio decreases, and the cost development reflects higher activity level, combined with future growth investments. EBITDA for the quarter increased 15.2%, and reflects the combined effect of robust revenue growth, strong gross margin, and improved OPEX to sales ratio.

Speaker #2: Combined with external workforce to handle peak periods. Finally, currency effects had an impact on the reported OPEX base in this quarter from translating SEK to NOK, explaining NOK 8 million.

Mads Kigen: Finally, currency effects had impact on the reported OPEX base in this quarter from translating SEK to NOK, explaining NOK 8 million. Overall, the OPEX and sales ratio decreases and the cost development reflects higher activity level combined with future growth investments. EBITDA for the quarter increases 15.2% and reflects the combined effect of robust revenue growth, strong gross margin, and improved OPEX to sales ratio. High revenues supported by strong online sales and good store performance, combined with improvement in gross margins, more than offset higher activity-driven operating costs in the quarter. Summarized, this quarter demonstrates good operating leverage in the business as activity level increase and reflects improved operational stability compared with last year. Cash flow development in Q2 follows a normal seasonal pattern of our business.

Speaker #2: Overall, the OPEX to sales ratio decreases, and the cost development reflects a higher activity level combined with future growth investments. EBITDA for the quarter increased by 15.2%, reflecting the combined effect of robust revenue growth, strong gross margin, and an improved OPEX to sales ratio.

Speaker #2: Higher revenues supported by strong online sales, and good store performance, combined with improvement in gross margins, more than offset higher activity-driven operating costs in the quarter.

Speaker #2: Summarized, this quarter's demonstrates good operating leverage in the business, as activity level increase and reflects improved operational stability, compared with last year. Cash flow development in the Q2 follows enormous seasonal pattern of our business.

Speaker #2: Higher revenues, supported by strong online sales and good store performance, combined with improvement in gross margins, more than offset higher activity-driven operating costs in the quarter.

Speaker #2: Summarized, this quarter demonstrates good operating leverage in the business as activity levels increase, and reflects improved operational stability compared with last year. Cash flow development in Q2 follows the normal seasonal pattern of our business.

Speaker #2: Cash flow from operations improved from last year, and the development in the quarter was positively affected by inventory of the provisions which partly was offset by creditors.

Speaker #2: Cash flow from investments mainly reflects continued investments to new stores, store projects, and IT initiatives, which is in line with our investment activity stated in the financial objectives.

Speaker #2: Cash flow from operations improved from last year, and the development in the quarter was positively affected by inventory and the provisions, which was partly offset by creditors.

Mads Kigen: Cash flow from operations improved from last year and the development in the quarter was positively affected by inventory, other provisions, which partly was offset by creditors. Cash flow from investments mainly reflects continued investments to new stores, store projects, and IT initiatives, which is in line with our investment activity stated in the financial objectives. Financing cash flow reflects the use of available credit facilities, ordinary lease payments, and net interests. This also includes dividend payment of NOK 2.50 per share, representing a total cash distribution of NOK 101.6 million to our shareholders during the quarter. Overall, the cash flow development in the quarter is consistent with operational activity and the investment level we have described earlier, and the cash flow from operations is improved significant from last year. To conclude, the group's financial position remained satisfactory at the end of the quarter.

Speaker #2: Financing cash flow reflects the use of available credit facilities, ordinary lease payments, and net interests. This also includes dividend payment of NOC 2.50 per share, representing a total cash distribution of 101.6 million to our shareholders during the quarter.

Speaker #2: Cash flow from investments mainly reflects continued investments in new stores, store projects, and IT initiatives, which is in line with our investment activity stated in the financial objectives.

Speaker #2: Financing cash flow reflects the use of available credit facilities, ordinary lease payments, and net interest. This also includes a dividend payment of NOK 2.50 per share, representing a total cash distribution of NOK 101.6 million to our shareholders during the quarter.

Speaker #2: Overall, the cash flow development in the quarter is consistent with operational activity, and the investment level we have described earlier, and the cash flow from operations is improved significant from last year.

Speaker #2: To conclude, the group's financial position remains satisfactory at the end of the quarter. We had cash and available credit facilities of 318.8 million at quarter end, providing liquidity to support ongoing operations and planned activities.

Speaker #2: Overall, the cash flow development in the quarter is consistent with operational activity and the investment level we have described earlier, and the cash flow from operations has improved significantly from last year.

Speaker #2: Net interest-bearing debt excluding IFRS 16 increased compared with last year, reflecting higher activity levels. Changes in working capital and investments during the quarter, combined with effects following out of the transition year 2025.

Speaker #2: To conclude, the group's financial position remains satisfactory at the end of the quarter. We had cash and available credit facilities of NOK 318.8 million at Q2 end, providing liquidity to support ongoing operations and planned activities.

Mads Kigen: To conclude, the group's financial position remained satisfactory at the end of the quarter. We had cash and available credit facilities of NOK 318.8 million at quarter end, providing liquidity to support ongoing operations and planned activities. Net interest-bearing debt, excluding IFRS 16, increased compared with last year, reflecting higher activity levels, changes in working capital, and investments during the quarter, combined with effects following out of the transition year 2025. The Gearing Ratio of 2.06 remains within a manageable range.

Mads Kigen: We had cash and available credit facilities of NOK 318.8 million at quarter end, providing liquidity to support ongoing operations and planned activities. Net interest-bearing debt, excluding IFRS 16, increased compared with last year, reflecting higher activity levels, changes in working capital, and investments during the quarter, combined with effects following out of the transition year 2025. The Gearing Ratio of 2.06 remains within a manageable range. Overall, the balance sheet and financing structure provide flexibility as we continue to focus on disciplined execution and development across the business. That said, I would like to give the word to Marianne to give us a status on our store portfolio as we hand over to you two.

Speaker #2: The gearing ratio of 2.06 remains within a manageable range. Overall, the balance sheet and financing structure provide flexibility, as we continue to focus on disciplined execution and development across the business.

Speaker #2: Net interest-bearing debt excluding IFRS 16 increased compared with last year, reflecting higher activity levels, changes in working capital, and investments during the quarter, combined with effects following out of the transition year 2025.

Speaker #2: That said, I would like to give the word to Marianne to give us a status on our store portfolio as the end of Q2.

Speaker #2: The gearing ratio of 2.06 remains within a manageable range. Overall, the balance sheet and financing structure provide flexibility as we continue to focus on disciplined execution and development across the business.

Mads Kigen: Overall, the balance sheet and financing structure provide flexibility as we continue to focus on disciplined execution and development across the business. That said, I would like to give the word to Marianne to give us a status on our store portfolio as we hand over to you two.

Speaker #1: Thank you, Mats. Store portfolio development continues, and fuels growth across KID and HEMTEX. During Q2, KID completed two store projects and opened one extended store, the 15th in Norway at Buskerud Storsenter.

Speaker #2: That said, I would like to give the word to Marianne to give us a status on our store portfolio as of the end of Q2.

Speaker #1: One store was closed, and at quarter end, contracts had been signed for two new stores in Norway and seven additional store projects, one store closure is planned.

Speaker #1: Thank you very much. Store portfolio development continues and fuels growth across KID and Hemtex. During Q2, KID completed two store projects and opened one extended store, the 15th in Norway, at Buskerud Storsenter.

Marianne Fulford: Thank you, Mads. Store portfolio development continues and fuels growth across KID and Hemtex. During Q2, KID completed two store projects and opened one extended store, the 15th in Norway at Buskerud Storsenter. One store was closed, and at quarter end, contracts had been signed for two new stores in Norway and seven additional store projects. One store closure is planned. During Q2, Hemtex completed two store projects and closed two stores in Sweden. At quarter end, contracts had been signed for nine additional store projects. Going forward, efficiency and productivity improvements in our new warehouse remains a key focus. Several logistics improvements have already been implemented with good effects, and optimization initiatives will progress further through 2026. We will continue our work with securing a long-term solution for the Norwegian warehouse.

Marianne Fulford: Thank you, Mads. Store portfolio development continues and fuels growth across Kid and Hemtex. During Q2, Kid completed two store projects and opened one extended store, the 15th in Norway at Buskerud Storsenter. One store was closed, and at quarter end, contracts had been signed for two new stores in Norway and seven additional store projects. One store closure is planned. During Q2, Hemtex completed two store projects and closed two stores in Sweden. At quarter end, contracts had been signed for nine additional store projects. Going forward, efficiency and productivity improvements in our new warehouse remains a key focus. Several logistics improvements have already been implemented with good effects, and optimization initiatives will progress further through 2026. We will continue our work with securing a long-term solution for the Norwegian warehouse.

Speaker #1: During Q2, HEMTEX completed two store projects and closed two stores in Sweden. At quarter end, contracts had been signed for nine additional store projects.

Speaker #1: One store was closed, and at the end of Q2, contracts had been signed for two new stores in Norway and seven additional store projects. One store closure is planned.

Speaker #1: And going forward, efficiency and productivity improvements in our new warehouse remains a key focus. Several logistics improvements have already been implemented with good effects, and optimization initiatives will progress further through 2026.

Speaker #1: During Q2, HEMTEX completed two store projects and closed two stores in Sweden. At the end of Q2, contracts had been signed for nine additional store projects.

Speaker #1: We will continue our work with securing a long-term solution for the Norwegian warehouse, at the moment we are exploring opportunities with several attractive partners, but such processes tend to take time.

Speaker #1: And going forward, efficiency and productivity improvements in our new warehouse remain a key focus. Several logistics improvements have already been implemented with good effect, and optimization initiatives will progress further through 2026.

Speaker #1: As mentioned, our system modernization is moving forward as planned, and we're also keeping a close eye on the freight market right now, as the situation is dynamic.

Speaker #1: We will continue our work on securing a long-term solution for the Norwegian warehouse. At the moment, we are exploring opportunities with several attractive partners, but such processes tend to take time.

Marianne Fulford: At the moment, we are exploring opportunities with several attractive partners, but such processes tend to take time. As mentioned, our system organization is moving forward as planned, and we are also keeping a close eye on the freight market right now as the situation is dynamic. Rates have increased during the first half of the year due to global trade disruptions and developments in the Middle East, as Mads mentioned. Over the past few years, we have moved towards earlier intake of key seasonal assortment to reduce our exposure to disruptions in the global freight market. Based on what we see today, we do not expect any major delays. We will continue to focus on more products with attractive value for money price points going forward. We see them as important traffic drivers for our stores.

Speaker #1: Rates have increased during the first half of the year due to global trade disruptions and development in the Middle East, as Mats mentioned. Over the past few years, we have moved towards earlier intake of key seasonal assortment to reduce our exposure to disruptions in the global freight market, and based on what we see today, we do not expect any major delays.

Speaker #1: As mentioned, our system modernization is moving forward as planned, and we're also keeping a close eye on the freight market right now, as the situation is dynamic.

Speaker #1: Rates have increased during the first half of the year due to global trade disruptions and developments in the Middle East, as Mats mentioned. Over the past few years, we have moved towards earlier intake of key seasonal assortments to reduce our exposure to disruptions in the global freight market, and based on what we see today, we do not expect any major delays.

Speaker #1: We will continue to focus on more products with attractive value for money price points, going forward. We see them as important traffic drivers for our stores, we saw this through Q2, as well as meeting competition from low price retailers.

Speaker #1: Most important of all is our focus on making sure we are fully prepared for a strong autumn and Christmas season. Both in-store and online.

Speaker #1: We will continue to focus on more products with attractive value-for-money price points going forward. We see them as important traffic drivers for our stores—we saw this through Q2—as well as for meeting competition from low-price retailers.

Speaker #1: New autumn products are arriving every day, and from September, the Christmas assortment will gradually start to come in. And as we head into the most important quarter of the year, we are focused on ensuring stable systems, excellent product availability, and the most inspiring shopping experience for our customers.

Marianne Fulford: We saw this through Q2, as well as meeting competition from low price retailers. Most important of all is our focus on making sure we are fully prepared for a strong autumn and Christmas season, both in store and online. New autumn products are arriving every day, and from September, the Christmas assortment will gradually start to come in. As we head into the most important quarter of the year, we are focused on ensuring stable systems, excellent product availability, and the most inspiring shopping experience for our customers. At the same time as we prepare for a strong autumn and Christmas season, we are continuing to develop and refine next year's summer assortment. As we speak, next year's summer assortment, including outdoor furniture, is just finalized with this year's experience clear in mind.

Speaker #1: Most important of all is our focus on making sure we are fully prepared for a strong autumn and Christmas season, both in-store and online.

Speaker #1: And at the same time as we prepare for a strong autumn and Christmas season, we are continuing to develop and refine next year's summer assortment.

Speaker #1: New autumn products are arriving every day, and from September the Christmas assortment will gradually start to come in. As we head into the most important quarter of the year, we are focused on ensuring stable systems, excellent product availability, and the most inspiring shopping experience for our customers.

Speaker #1: As we speak, next year's summer assortment, including outdoor furniture, is just finalized, with this year's experience clear in mind. I think that was it for today, and then we are ready to open up for Q&A, Mats.

Speaker #1: And at the same time, as we prepare for a strong autumn and Christmas season, we are continuing to develop and refine next year's summer assortment.

Speaker #1: As we speak, next year's summer assortment, including outdoor furniture, has just been finalized, with this year's experience clear in mind. I think that was it for today, and now we are ready to open up for Q&A. Mats?

Marianne Fulford: I think that was it for today, and then we are ready to open up for Q&A. Mads?

Speaker #2: Yes, so we have some questions here. From the digital audience, Marianne, you can start answering what's the status of the warehouse operations and what remains to be achieved going forward in terms of efficiency?

Speaker #1: Well, as I explained earlier in the presentation. There were operations that are now stable. We are pleased that goods are going out from the warehouse to the stores as planned, and the challenges we saw in 2025 did not in any way affect the sale in the quarter.

Mads Kigen: Yes, so we have some questions here from the digital audience. Marianne, you can start answering. What is the status of the warehouse operations and what remains to be achieved going forward in terms of efficiency?

Speaker #2: Yes, so we have some questions here from the digital audience. Marianne, you can start by answering: What's the status of the warehouse operations, and what remains to be achieved going forward in terms of efficiency?

Speaker #1: Well, as I explained earlier in the presentation, the warehouse operations are now stable. We are pleased that goods are going out from the warehouse to the stores as planned, and the challenges we saw in 2025 did not in any way affect the sale in the quarter.

Marianne Fulford: Well, as I explained earlier in the presentation, the warehouse operations are now stable. We are pleased that goods are going out from the warehouse to the stores as planned, and the challenges we saw in 2025 did not in any way affect the sale in the quarter. There is a lot of improvements going on in the warehouse, and there will be a lot more of them going forward. Also, as we finalize our system organization, even more efficiency gains can be achieved going forward into 2027 as well.

Speaker #1: There is a lot of improvements going on in the warehouse, and there will be a lot more of them going forward. Also, as we finalize our system modernization, even more efficiency gains can be achieved going forward into seven 272027 as well.

Speaker #1: There are a lot of improvements going on in the warehouse, and there will be a lot more of them going forward. Also, as we finalize our system modernization, even more efficiency gains can be achieved going forward into 2020 and 2027 as well.

Speaker #2: Yeah, and I can also add that during the quarter, we had the labor productivity, which was increased by 25% compared to last year. At the same time, volumes and the activity was also increased, meaning that we delivered the efficiency improvements with significant higher level of operations.

Speaker #2: The next question, with expected increase of freight rates, are you taking any actions with regards to hedging? I think I can answer to that, and we continue to source and buy freight in the spot market, which is consistent with the strategy we already have had.

Speaker #2: Yeah, and I can also add that during the quarter we had labor productivity, which increased by 25% compared to last year. At the same time, volumes and activity also increased, meaning that we delivered the efficiency improvements with a significantly higher level of operations.

Mads Kigen: Yeah. I can also add that during the quarter, we had the labor productivity, which was increased by 25% compared to last year. At the same time, volumes and the activity was also increased, meaning that we delivered the efficiency improvements with significant higher level of operations. The next question, with expected increase of freight rates, are you taking any actions with regards to hedging? I think I can answer to that. We continue to source and buy freight in the spot market, which is consistent in the strategy we already have had the last years, which has been successful. We believe this provides most flexibility and allows us to optimize freight purchases based on the current market conditions, routes, and timing of shipments. The next question, we have another one for the warehouse. I think we already answered it.

Speaker #2: The last years, which has been successful. We believe this is provides most flexibility and allows us to optimize freight purchases based on the current market conditions, routes, and timing of shipments.

Speaker #2: The next question: With the expected increase in freight rates, are you taking any actions with regards to hedging? I think I can answer that. We continue to source and buy freight in the spot market, which is consistent with the strategy we have already had.

Speaker #2: The next question, we have another one for the warehouse. I think we already answered it. We will not share any efficiency numbers, but as I said, we had 25% more efficiency measured in the employee benefit expenses over produced order lines out of the warehouse during the quarter compared to last year.

Speaker #2: The last years, which have been successful. We believe this provides the most flexibility and allows us to optimize freight purchases based on the current market conditions, routes, and timing of shipments.

Mads Kigen: The next question, we have another one for the warehouse. I think we already answered it. We will not share any efficiency numbers, but as I said, we had 25% more efficiency measured in employee benefit expenses over produced order lines out of the warehouse during the quarter compared to last year. Then we have a question for online. Can you please elaborate on the strong online revenue development in the quarter from last year?

Speaker #2: Then we have a question for online. Can you please elaborate on the strong online revenue development in the quarter from last year?

Speaker #2: The next question, we have another one for the warehouse. I think we already answered it—we will not share any efficiency numbers. But, as I said, we had 25% more efficiency measured in employee benefit expenses over produced order lines out of the warehouse during the quarter compared to last year.

Mads Kigen: We will not share any efficiency numbers, but as I said, we had 25% more efficiency measured in employee benefit expenses over produced order lines out of the warehouse during the quarter compared to last year. Then we have a question for online. Can you please elaborate on the strong online revenue development in the quarter from last year?

Speaker #2: Then we have a question from online: Can you please elaborate on the strong online revenue development in the quarter compared to last year?

Speaker #1: We have upgraded our website with a new UX design, which means that we have achieved a more better customer experience online. Both more inspiring and easier shopping experience.

Speaker #1: Yeah, I think I can answer that one. During the last year, we have made some organizational changes in the e-commerce department, and we have brought in new expertise—new people means new capabilities. We have upgraded our website with a new UX design, which means that we have achieved a much better customer experience online; both a more inspiring and easier shopping experience. We have also done a lot of successful marketing during Q2 that raised traffic both to online and to our stores.

Marianne Fulford: Yeah, I think I can answer that one. During the last year, we have made some organizational changes in the e-commerce department, and we have brought in new expertise. New people means new capabilities. We have upgraded our website with a new UX design, which means that we have achieved a better customer experience online, both more inspiring and an easier shopping experience. We have also done a lot of successful marketing during Q2 that drives traffic both to online and to our stores. What we also see is the traffic we bring into our websites convert more customers than earlier, and that's the traffic we want online. We have also made larger reservations of seasonal inventory for our web shop. That's also something that drives growth online. We might also mention that last year was quite soft in Q2 due to online growth.

Speaker #1: We have also done a lot of successful marketing during Q2 that raised traffic both to online and to our stores. And what we also see is the traffic we bring into our website convert more customers than earlier, and that's the traffic we want online.

Speaker #1: We have also made a larger reservations of seasonal inventory for our web shop. That's also something that drives growth online, and we should might also mention that last year was quite soft in Q2 due to online growth, and going forward, we're meeting challenging period in 2025 with large growth online, due to lack of product in our stores.

Speaker #1: And what we also see is that the traffic we bring into our website converts more customers than earlier, and that's the traffic we want online.

Speaker #1: We have also made larger reservations of seasonal inventory for our web shop. That's also something that drives growth online. We should also mention that last year was quite soft in Q2, due to online growth, and going forward we're meeting a challenging period in 2025 with large growth online, due to lack of product in our stores.

Speaker #2: Yeah, in the second half of 2025, where the customers found their products online and not in stores due to the product availability.

Marianne Fulford: We might also mention that last year was quite soft in Q2 due to online growth. Going forward, we are meeting a challenging period in 2025 with large growth online due to lack of product in our stores.

Speaker #1: Yeah, so keep in mind we meet high online growth going forward, but we're really happy with online growth in Q2.

Marianne Fulford: Going forward, we are meeting a challenging period in 2025 with large growth online due to lack of product in our stores.

Speaker #2: More questions coming in. Had strong seasonal sale a positive impact on gross margin this quarter? I think I can start, and you can fill in if you would like, Marianne.

Mads Kigen: Yeah, in H2 2025 where the customers found the products online and not in stores due to the product availability.

Speaker #2: Yeah, in the second half of 2025, where the customers found the products online and not in stores due to the product availability.

Speaker #1: Yeah, so keep in mind, we mean high online growth going forward, but we're really happy with online growth in Q2.

Marianne Fulford: Keep in mind, we meet high online growth going forward.

Speaker #2: We see favorable margin effects from currency this quarter. The positive currency impact is normally seen in seasonal products and new products, while purchasing of the non-seasonal assortment will take more time.

Mads Kigen: Yeah.

Marianne Fulford: We are really happy with online growth in Q2.

Mads Kigen: More questions coming in. Had strong seasonal sale a positive impact on gross margin this quarter? I think I can start, and you can fill in if you would like, Marianne.

Speaker #2: More questions coming in: Did a strong seasonal sale have a positive impact on gross margin this quarter? I think I can start, and you can fill in if you would like, Marianne.

Speaker #2: That is how we calculate the inventory and the cost of goods sold. So yeah, we had a positive impact in the seasonal assortment compared to last year.

Marianne Fulford: Yeah.

Mads Kigen: We see favorable margin effects from currency this quarter. The positive currency impact is normally seen in seasonal products and new products while purchasing of the non-seasonal assortment will take more time. That is how we calculate the inventory and the Cost of Goods Sold. We had a positive impact in the seasonal assortment compared to last year. Okay. Can you provide, Mads, I think for you, Germany, can you provide some more color on the performance in Germany? How are sales performing?

Speaker #2: Okay, can you provide Marianne, I think for you, Germany, can you provide some more color on the performance in Germany? How are sales performing?

Speaker #2: That is how we calculate the inventory and the cost of goods sold. So, yeah, we had a positive impact in the seasonal assortment compared to last year.

Speaker #1: Yeah.

Speaker #2: What are the lessons learned?

Speaker #1: Well, we've been live for four months. It's not a long time, but there's a lot of learning in it. And as I said in my presentation, learning is the most important part right now.

Speaker #2: Okay, can you provide, Marianne—I think for you, Germany—can you provide some more color on the performance in Germany? How are sales performing?

Speaker #1: We yeah, we are curious about who the customers are, where they live, what they shop, and this information will yeah, make a lot of input to how we will go forward.

Speaker #1: Yeah.

Marianne Fulford: Yeah.

Speaker #2: What are the lessons learned?

Mads Kigen: What are the lessons learned?

Speaker #1: Well, we've been live for four months; it's not a long time, but there's a lot of learning in it. And as I said in my presentation, learning is the most important part right now. We, yeah, we are curious about who the customers are, where they live, what they shop, and this information will, yeah, provide a lot of input into how we will go forward. And regarding revenues and cost, maybe you comment on that.

Marianne Fulford: Well, we have been live for 4 months. It is not a long time, but there is a lot of learning in it. As I said in my presentation, learning is the most important part right now. We are curious about who the customers are, where they live, what they shop. This information will make a lot of input to how we will go forward. Regarding revenues and cost, maybe you comment that.

Speaker #1: And regarding revenues and cost, maybe you comment.

Speaker #2: Yeah, so in terms of revenues, we had 0.4 million during the quarter. And some costs, marketing costs especially, of below 1 million. So negative contribution in this first launch quarter.

Speaker #2: But we look forward to the journey with also hemtex.com later in 2026.

Speaker #2: Yeah, so in terms of revenues, we had $0.4 million during the quarter, and some costs, marketing costs especially, of below $1 million. So, negative contribution in this first launch quarter, but we look forward to the journey, with also hemtechs.com later in 2026.

Mads Kigen: Yeah. In terms of revenues, we had NOK 0.4 million during the quarter, and some costs, marketing costs especially, all below NOK 1 million. So negative contribution in this first launch quarter. But we look forward to the journey with also Hemtex.com later in 2026.

Speaker #1: And we can also add that it is in line with our expectations after four months.

Speaker #2: Yeah.

Speaker #1: Yeah.

Speaker #2: Just looking through the questions, I think we answered all of it. So the final question, was for today. We see you in November for our third quarter presentation, and thank you for today.

Speaker #1: And we can also add that it is in line with our expectations after four months.

Marianne Fulford: And we can also add that it is in line with our expectations after 4 months.

Speaker #2: Yeah.

Mads Kigen: Yeah.

Speaker #1: Yeah.

Marianne Fulford: Yeah.

Speaker #2: Just looking through the questions, I think we answered all of them. So, the final question was for today? We'll see you in November for our third quarter presentation, and thank you for today.

Mads Kigen: Just looking through the questions, I think we answered all of it. So the final question was for today.

Marianne Fulford: Yeah.

Mads Kigen: We will see you in November for our Q3 presentation, and thank you for today.

Marianne Fulford: See you.

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Q2 2026 Kid ASA Earnings Call

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