New Wave Group AB (NWG), the Swedish owner of Ahead, Auclair, Cotton Classics, Craft, Cutter & Buck, Seger, and Tenson AB, saw a combination of organic growth and acquisitions deliver high-teens growth in the 2025 fourth quarter.

“In my opinion, we delivered a strong sales performance in the fourth quarter,” commented company CEO Torsten Jansson in his letter to investors that accompanied the company’s 2025 year-end report.

“The organic growth amounted to 6.0 percent in local currencies and acquisitions contributed with 11.7 percent, which resulted in total growth with 17.7 percent,” he stated.

Jansson also reported that currency effects were “nevertheless considerable,” and in Swedish krona (SEK), the growth amounted to 11.2 percent year-over-year to SEK 3,145 million, compared to SEK 2,827 million in Q4 2024. He said the appreciation of the Swedish krona is now significantly impacting all reported figures, particularly those from the U.S. operations when translated into SEK. Currency translation effects were negative 6.5 percent.

Jannsen added that a “particularly positive highlight” from the quarter is that both the profile and retail divisions, as well as all other business segments, achieved growth.

Sales by Operating Segment and Sales Channel
The Group distributes its products through two sales channels, Promo and Retail, and across three operating segments: Corporate, Sports & Leisure and Gifts & Home Furnishings. Most brands are offered through both channels.

Corporate channel sales increased 15.9 percent to SEK 2,145 million, compared to SEK 1,850 million in the prior-year quarter.

Retail channel sales increased 2.3 percent year-over-year to SEK 999 million.

Both channels were negatively affected by currency fluctuations during the quarter, resulting in a total impact of 6.5 percent.

The company’s trading operations in Asia, which were characterized by “few but large orders,” reportedly make turnover volatile. Still, the region contributed positively, totaling SEK 136 million in Q4, compared to SEK 142 million in Q4 2024.

Profitability & Expenses
The gross profit for the fourth quarter was approximately 8.0 percent higher compared to the 2024 fourth quarter and amounted to SEK 1,525 million. Gross margin was said to remain “very stable” and amounted to 48.5 percent of net sales in the fourth quarter, which was said to be “slightly lower” than the 50.0 percent margin in the prior-year quarter. Excluding the effect of acquisitions, the comparable gross margin for the quarter was 51.3 percent.

“It is important to note that Cotton Classics is included for a full quarter for the first time and operates with a lower gross margin,” the CEO noted. On a comparable basis, excluding acquisitions, gross margin reportedly increased 130 basis points to 51.3 percent of net sales in the quarter.

Selling and Administrative Expenses, Depreciation, and External costs increased by SEK 75 million to SEK 578 million, equivalent to a 14.8 percent margin, compared to SEK 503 million in the Q4 period in 2024.

Operating income for the fourth quarter amounted to SEK 435 million, SEK 27 million lower than the prior-year fourth quarter. The operating margin amounted to 13.8 percent of net sales.

“Considering our continued high level of investment, I am pleased with the performance,” Nordin commented.

Image courtesy Craft, data and graphics courtesy New Wave Group AB