WeSports Group, the Malmö, Sweden-based manufacturer of sports equipment and parent of specialty retailers, HockeySports, RunningXpert and other retailers supporting active sports lifestyle consumers, reported that third quarter net sales amounted to SEK 777.3 million, representing year-over-year (y/y) growth of 19.5 percent and organic growth of 18.5 percent compared to the third quarter 2024.

Currency effects reportedly had a negative 1.1 percent impact on third-quarter 2025 revenue.

The owner of the Bikester, Addnature, Cykelkraft, Løbeshop.dk, Tretorn, and Klubbhuset brands, and now the Nordic distributor for Nike Strength product, reported that it also recently conducted the acquisition of Sportsmaster, which it said “strengthens the company’s position in the Norwegian fitness equipment market and adds strategically important own and controlled brands.”

The Sportsmaster Group reported revenues of approximately NOK 240 million and will be consolidated as of October 2025.

Following the end of the reporting period, a strategic partnership was also established with Cycle Group Oy, the owner of Pyörävarikko, Finland’s leading specialist bicycle retail chain. The partnership entails close collaboration and includes an option to acquire a majority stake in the company over time

Growth during the quarter was reported to be driven by strong performance from most companies, with “good delivery” from companies active in running and cycling, complemented by a strong start to the season in hockey, international expansion and floorball, supported by “solid growth in existing channels.”  The company stated that this had a positive impact on the quarter’s sales.

Gross Profit
Adjusted gross profit amounted to SEK 283.5 million, or 36.5 percent of net sales in the third quarter, compared to SEK 234.3 million, or 36.0 percent for the corresponding prior-year quarter. The 50 basis-point improvement in Adjusted Gross Margin was attributed to several companies’ demonstrating strong margin development during the quarter, combined with the seasonal start in product areas with higher underlying gross margins.

Operating Costs

  • Personnel Costs increased by 13.7 percent y/y and amounted to SEK 78.1 million in Q3.
  • Other External Costs increased by 23.0 percent y/y and amounted to SEK 126.5 million for the quarter.

In relation to total sales, Personnel Costs decreased by 0.5 percentage points, while Other External Costs increased by 0.5 percentage points, compared to the third quarter of 2024. The increase in Other External Costs was attributed partly to higher consultancy fees, driven by an ongoing strategic review, as well as temporarily higher marketing expenses.

As of September 30, 2025, the total number of employees in the Group’s companies was 654, comprising 497 full-time employees.

Profitability
Adjusted EBITA increased by 20.0 percent to SEK 66.8 million (55.6), and the adjusted EBITA margin amounted to 8.6 percent (8.5). Strong net sales growth, combined with increased leverage on semi-variable costs such as outbound freight and inventory-related expenses, as well as cost control over more fixed costs, contributed to the increased adjusted EBITA margin for the third quarter.

Adjusted EBIT increased by 20.8 percent to SEK 62.5 million (51.8), and the adjusted EBIT margin amounted to 8.0 percent (8.0). Items affecting comparability during the quarter totaled SEK 18.5 million (12.6 million). These items primarily included the restructuring activities of the Group’s outdoor and cross-country skiing operations, which resulted in the merger of businesses and closure costs, affecting the quarter. In addition, part of a strategic review conducted since the second quarter was expensed, which also contributed to the increased proportion of items affecting comparability. During January to September 2025, adjustment items totaled SEK 26.4 million (16.3 million).

Operating income for the quarter totaled SEK 35.8 million (SEK 31.8 million).

Financial income consisted primarily of income from borrowed funds in the group-wide cash pool, which amounted to SEK 3.9 million (2.1).

Financial costs amounted to SEK 11.6 million (8.8) and primarily consisted of interest expenses on loans and lease liabilities, as well as the utilization of credit facilities.

Profit before tax amounted to SEK 28.1 million (25.1) and profit after tax for the period amounted to SEK 11.6 million (18.4). The higher tax expense for the quarter is primarily due to differences between accounting and taxable results, which affect profit after tax. This also impacts earnings per share, which amounted to SEK 6.24 (11.59) during the quarter.

The number of shares outstanding at the end of the period amounted to 1,863,407 (1,583,688).

 Image courtesy RunningXpert/WeSports Group