New Wave Group AB CEO Torsten Jansson told investors in the company’s second quarter earnings report that Q2 was a “good” quarter, with growth in both sales and earnings. He said it appears many markets are slowly but surely starting to recover.

The owner of the Ahead, Auclair, Cotton Classics, Craft, Cutter & Buck and Tenson brands, among many others, reported that second quarter sales increased 13.5 percent year-over-year (y/y) to SEK 2,611 million (~$279 mm). The company saw sales grow 14.6 percent in local currencies, with organic growth of 2.2 percent combined with the acquisition of Cotton Classics (contributing an additional 12.3 percent), and sales of New Wave brands added after the acquisition.

New Wave Group AB reports in the Swedish krona (SEK) currency. All conversions are calculated at the average 1 SEK = 0.1067 USD conversion rate for the second quarter as posted by X-Rates.

Tenson’s U.S. Launch
One of the small nuggets that came from the company’s CEO during the second quarter reporting was what seemed at first as a side remark about the company’s Tenson brand entering the U.S. market this fall. Digging a bit deeper, it now appears the Swedish outerwear brand first launched in 1951 will indeed make its U.S. debut this fall, and that it will be distributed through Cutter & Buck’s U.S. team.

A new Cutter & Buck facility in Dallas, Texas will help facilitate the launch as the company boasts that inventory has already started to be received from the company’s Seattle and Cincinnati facilities. Opening stock is estimated at approximately 3 million units with the ability to handle 10 million units over time.

Jansson said the new facility puts the company in a strong position to further increase growth in the United States.

“We are now approaching the opening of our new warehouse and logistics center in Dallas, which will begin operating in October,” the CEO noted. “During the autumn, we will also launch Tenson in the U.S. market. In parallel, we continuously analyze both acquisition opportunities and new organic establishments.”

It appears Cutter & Buck has rallied its road team to get the word out as several reps took to LinkedIn to let the world know of the new opportunity.

One post from Cutter & Buck’s Michigan rep Ryan Steiner read:

“For more than 70 years, Tenson has built a reputation for Scandinavian craftsmanship, innovation, and performance. Now, that legacy joins the Cutter & Buck family, giving customers even more premium options for the outdoors and beyond.

Here’s what to expect:
• New Tenson products will continue launching throughout the rest of 2026.
• Launch dates are listed under each product’s Availability & Add to Cart section on CBCorporate.com
• Dedicated product pages with marketing assets and resources are also available to help bring the collection to life.

This is another exciting milestone as Cutter & Buck continues expanding its premium portfolio. With recent launches like Prospect, Forge, Adapt, Pike, Skyline, Clique, and now Tenson, we’re giving customers more innovative, sustainable, and performance-driven apparel than ever before.

As the Michigan representative for Cutter & Buck, I’m excited to introduce this collection to distributors and partners across the state. If you’re looking to elevate your apparel program with premium brands that combine craftsmanship, performance, and timeless style, let’s connect.”

Obviously, the first question here will be about the seriousness of the launch if it is led by a road team that is focused on corporate branding and apparel embellishment, rather the complexities of technical outdoor gear. While there may be a parallel strategy to open a line of communication with outdoor specialty or the outdoor chains that has not been discussed publicly at this point. With Helly Hansen coming on strong with a re-energized U.S. focus and strategy, it could open the door for a Tenson with its history of design and technical fabrics that could play well in the States.

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

Channel Summary
During 2026, just over two-thirds of sales were generated through the Promo channel, while the remaining third came through the Retail channel. Both sales channels were said to be negatively affected by currency changes during the quarter, with a total effect of negative 1.0 percent. In North America, Retail was said to be the strongest, while Europe is stronger on Promo. Gifts & Home Furnishings are the largest in Sweden.

  • Promo channel sales amounted to SEK 1,840 million (~$196 mm) in Q2, an increase of 17.5 percent.
  • Retail channel sales increased 5.0 percent y/y and amounted to SEK 771 million (~$82 mm).

Segment Summary

The Corporate segment saw sales increase 19.1 percent y/y to SEK 1,424 million (~$152 mm) for the quarter, representing ~53 percent of the Group’s sales. The increase was said to be mainly attributable to acquisitions. In comparable units, sales decreased, mainly due to lower sales in the trading operations in Asia compared with the Q2 period last year and a negative currency translation effect.

Sports & Leisure segment sales grew 8.5 percent y/y to SEK 987 million (~$105 mm) in Q2, representing ~40 percent of Group sales, said to be mainly driven by growth in the Cutter & Buck and Craft brands.

Gifts & Home Furnishings segment sales increased 2.7 percent y/y to SEK 200 million (~$21 mm), or the remaining 7 percent of Group sales in the quarter

Region Summary
New Wave Group has operations in 28 countries, with sales mainly in Europe and North America. During the quarter, sales in all regions except Sweden were said to be negatively affected by currency translation effects compared with the Q2 period last year. North America saw the biggest impact at nearly negative 3 percent impact. Adjusted for currency, NWG said it achieved growth in all geographical markets where it has sales.

Cutter & Buck is investing in a new warehouse and logistics center in Dallas, Texas, scheduled to open in October 2026, with 10 million units of storage capacity and advanced automation technology, including AutoStore, embroidery and Direct-to-Film decoration. Designed to support growing inventory needs and faster order fulfillment, the facility is expected to improve service levels for a larger customer base, expand in-house decoration capabilities and increase flexibility for holiday deliveries during the peak season.

The trading operations in Asia, which are said to be characterized by few and large orders that make sales volatile, had a positive contribution during the quarter with SEK 152 million, compared to SEK 186 million in the year-ago quarter.

Toward the end of 2027, the pace of investment in automation of existing warehouses will decrease and move toward a more normal level.

Goods for Resale
The quarter’s goods for resale is a total of SEK 49 million lower as a result of one-off effects, which impacts comparability with the previous year. The largest part refers to the repayment of previously paid U.S. custom duties attributable to goods that have already been sold to the customer.

Profitability & Expenses
Gross profit and gross profit margin are the result of many factors, both internal and external, and are mainly affected by decisions made by New Wave Group based on its strategy of having the best combination of quality, price, service level and sustainability.

Gross profit for the second quarter was 18.2 percent higher than in the same quarter last year and amounted to SEK 1,305 million (~$139 mm), corresponding to a gross profit margin of 50.0 percent of sales in Q2, compared to 48.0 percent in Q2 2025. The quarter was said to be positively affected by non-recurring effects, mainly related to the repayment of previously paid U.S. customs duties. The non-recurring items had a positive 190 basis-point impact on gross margin. In addition, a lower share of trading operations had a positive effect on the quarter’s margin, while acquisitions reduced the margin.

Growth in comparable operations mainly came from Cutter & Buck and Craft.

“The gross profit margin was strong and amounted to 50.0 percent,” offered Jansson. “It was positively affected by refunded customs duties in the United States and by a lower share of trading operations. At the same time, it was negatively affected by Cotton Classics’ lower gross margin.”

For the quarter, other operating income and other operating expenses mainly consist of foreign exchange gains and foreign exchange losses. For the quarter, the net amount of currency effects within other income and expenses is SEK -1 million, and the net amount of total other operating income and other operating expenses is SEK 10 million.

New Wave Group’s target is to achieve an operating margin of 20 percent per year over a business cycle. Operating profit for the second quarter amounted to SEK 295 million (~$31 mm), corresponding to an operating margin of 11.3 percent, up 80 basis points y/y. Acquired operations, including sales of New Wave brands added after the acquisition, contributed approximately SEK 23 million positively to operating profit during the quarter.

“I am very pleased with this, especially considering that we continue to take significant costs for investments in IT, warehouses and other future-oriented initiatives,” Jansson said.

Net financial items for the quarter amounted to SEK -33 million, mainly due to increased net debt.

The effective tax rate amounted to 22.9 percent for the quarter.

Profit for the quarter amounted to SEK 202 million (~$22 mm), and earnings per share amounted to SEK 1.52 per share, compared to SEK 1.26 per share last year.

Image courtesy Tenson/New Wave Group