Reima, the Finnish maker of outerwear, activewear, footwear and accessories for children, reported sales in the second quarter reached €11.1 million ($12.8 mm), up 14 percent year over year and led by continued strength in North American direct-to-consumer sales. The adjusted EBITDA loss was reduced slightly due in part to cost savings.

Sales
Sales growth in the second quarter, Reima’s smallest quarter, was driven by earlier wholesale deliveries in Europe and strong DTC performance in North America and partially offset by a decline in Asia, as Reima continued to streamline its own retail network in China. The strong performance in North American DTC sales continued, with Reima’s own digital channel in the region growing 52 percent, compared to 2025, or 46 percent in local currency.

In the six months, revenue increased 6 percent compared to previous year and was at €27.7 million. Growth in Europe and North America was partially offset by decline in Asia due to store closings in China. Reima’s own digital channel in the North American region grew 26 percent, compared to 2025, or 34 percent in local currency. European DTC sales, especially in the Nordic countries, were positively impacted by, among other things, the cold weather in the first quarter.

Profitability
Reima’s gross profit in the second quarter increased slightly to €3.9 million from €3.6 million in 2025. Gross margin decreased to 35.5 percent from 37.3 percent in 2025. The decrease was driven mainly by channel mix. Adjusted EBITDA improved due to higher gross profit as well as cost savings initiatives and amounted to €-3.0 million (€-4.1 million).

In the half, Reima’s gross profit increased slightly to €10.0 million from €9.7 million in 2025. Gross margin decreased to 35.9 percent from 37.1 percent in 2025. The decrease was driven mainly by channel mix and slightly higher logistics costs in early part of the first quarter. Adjusted EBITDA improved due to higher gross profit as well as cost savings initiatives and amounted to €-5.2 million (€-6.2 million). Reima’s business is seasonal and adjusted EBITDA is typically clearly smaller in the first half of the year than in the second half of the year

Management Commentary
CEO Heikki Lempinen said, “Reima’s first half of 2026 showed positive development in revenue, gross profit and adjusted EBITDA, supported by growth in Europe and North America. Revenue for January to June increased by 6 percent year-on-year to €27.7 million. Growth in Europe and North America was partly offset by lower sales in Asia, where we continued to adjust our own retail store network in China in line with our digital-first omnichannel strategy. This supports our focus on scalable channels, disciplined resource allocation, and long-term profitable growth.

“The second quarter developed particularly well, with revenue increasing by 14 percent year-on-year to €11.1 million. Growth was supported by continued good development in direct-to-consumer sales in North America and partly due to timing of wholesale deliveries in Europe. Reima’s own digital channel in North America grew by 52 percent compared to the previous year, or 46 percent in local currency.

“Gross profit and adjusted EBITDA improved compared with the previous year, although gross margin was impacted by channel mix and somewhat higher logistics costs in the early part of the year. In January to June, gross profit increased to €10.0 million from €9.7 million, and adjusted EBITDA improved to €-5.2 million from €-6.2 million, which was in line with expectations and seasonality of the business.

“For the remainder of the year, our focus remains on executing the business activities for the coming Autumn & Winter season, managing working capital carefully, and strengthening Reima brand’s position in its key markets.”

Balance Sheet
The consolidated balance sheet total was €108.7 million (€109.4 million) at the end of June 2026. Cash and cash equivalents totaled €3.4 million (€5.8 million) at the end of June 2026. Inventory balance at the end of June was at €30.9 million (€26.8 million), increase was due to planned earlier inbound of autumn and winter goods.

Cash flow and financing Cash flow before change in net working capital was €-5.6 million (€-2.2 million), driven by Reima’s typical business seasonality. After change in net working capital and finance items, the cash flow from operating activities was €-9.7 million (€-12.7 million). Reima’s business is highly seasonal and working capital typically is lowest at the end of first quarter, increases in the second quarter and decreases in the second half when winter products are delivered from inventory to customers. At the end of June 2026, senior net debt (as defined in the bond terms) was €25.3 million. Under the terms of the bond issued by Reima Group’s parent company, Reima Group Holding Oy, Reima is subject to maintenance covenants regarding minimum cash and net leverage. Reima is in compliance with all covenants.

Image courtesy Reima