RevolutionRace CEO Paul Fischbein reported in a October 23 letter to investors that the Sweden-based outdoor apparel company started the 2025/26 fiscal year with a strong first quarter ended September 30.

Fischbein said that net sales for the first quarter amounted to SEK 392 million ($41.2 mm, €35.3 mm), corresponding to a sales growth of 15 percent in local currencies (+12 percent in reported SEK currency), compared with SEK 350 million in the first quarter last year. EBIT amounted to SEK 75 million ($7.9 mm, €6.7 mm), an increase of 31 percent year-over-year (y/y) from SEK 57 million in the prior-year Q1 period.

“It is encouraging to deliver continued profitable growth, and we believe that we are increasing market shares in several markets, even though the overall market environment continues to be described as challenging,” Fischbein commented.

RevolutionRace and its parent company report in the Swedish krona (SEK) currency. All currency translations were set by the company at an average of SEK 9.52 per U.S. dollar and European Commission euros (€) at SEK 11.12 per euro.

Growth Across All Regions
The CEO said the company continues to grow across all regions. The report indicated that 73 percent of net sales were generated outside the Nordics regions for the quarter.

In the Nordics, sales increased by 19 percent in local currencies (+17 percent in reported SEK terms) to SEK 216 million ($22.7 mm, €19.4 mm) in the fiscal first quarter. In the company’s most mature market, Sweden, growth came in at 18 percent.

In the DACH region, which includes Germany, Austria and Switzerland, growth was said to be 18 percent in local currencies, or 15 percent in SEK terms to SEK 105 million ($11.0 mm, €9.4 mm) in the quarter. Switzerland was said to be the market with the strongest growth during the quarter, followed by Austria. Together with the growth of 14 percent in the company’s largest market, Germany, this resulted in a solid overall performance in the region.

The Rest of World (ROW) region grew 2 percent for the period, but declined 2 percent in reported SEK terms to SEK 71 million ($7.5 mm, €6.4 mm) in Q1. Fischbein said the company is strengthening its position in several ROW markets, such as Poland and the UK. In the U.S., he said they saw a sales decline due to higher tariffs, which contributed to lower growth for the ROW region as a whole.

Industry-Leading Margins
The gross margin for the quarter was 69.6 percent of sales, compared to 70.0 percent in the year-ago first quarter.

During the first quarter, EBIT amounted to SEK 75 million, or 19.0 percent of sales, compared to SEK 57 million, or 16.3 percent of sales, in the year-ago quarter. Fischbein said the recent strengthening of the SEK resulted in an unfavorable currency effect on net sales and result as income is presented in SEK, while the majority of income is generated in other currencies, primarily euros.

“For the coming quarters of the financial year, we have a positive outlook on goods for resale, driven by a weaker USD,” he added.

Financial Position and Inventory
Fischbein  said the company in maintaining “a solid financial position,” with a net cash position of SEK 163 million at the end of the first quarter and an undrawn credit facility.

“Ahead of the second quarter, we completed a planned inventory build-up to prepare for the peak season, and we are now well prepared for the seasonally strongest period of the year,” he noted. “Going forward, we expect that inventory levels will gradually decrease over the course of the financial year. During the quarter, we continued our share repurchase programme in line with the mandate from the Annual General Meeting, repurchasing shares for a total amount of SEK 32 million. Since the AGM in 2024, we have repurchased shares amounting to SEK 168 million in total, and the Board’s proposal to the upcoming AGM in November is to cancel all repurchased shares.”

New Brand Store in Swedish Market
At the end of September, RevolutionRace opened its first brand store in central Stockholm.

“During the first weeks we have seen great interest and engagement from customers,” the CEO shared “We are evaluating opportunities for additional stores, including potential establishments outside Sweden, but we remain selective in our choices and will expand step by step.”

Strengthened Organization
RevolutionRace has appointed Malin Kemi as chief product officer and Peter Jansson as chief technology officer. Malin brings extensive experience from leading positions at Ridestore, Axel Arigato, Lindex and NilsonGroup, while Peter joins the company from a position as CIO at XXL.

Outlook
While the market environment is still described by many as challenging, but RevolutionRace said it is well positioned ahead of the peak season.

“Our strong customer offering, leading margins and high customer satisfaction provide solid conditions for continued profitable growth,”  Fischbein commented. “With autumn and winter approaching, we hope for a cold and snowy season that provides excellent opportunities for outdoor activities and experiences in nature. We are now entering our most important trading season of the year. The second quarter has just started, and the real peak season lies ahead. Overall, we have a stronger market position than ever, and we are seeing continued sales growth at the beginning of the second quarter. I would like to thank everyone who has contributed to a strong start to the new financial year – our employees, customers, partners and shareholders. Together, we continue to develop RevolutionRace and create long-term value.”

RevolutionRace is a subsidiary of parent company RVRC Holding AB, a Swedish public company domiciled in Borås, Sweden. Net sales for the first quarter amounted to SEK 3 million and is attributable to intra-group services related to group management. The parent company’s profit for the first quarter amounted to a loss of SEK 3 million.

Niclas and Pernilla Nyrensten, an “outdoorsy couple” from Borås, Sweden, decided to shake things up in 2014 when they launched RevolutionRace with the mission to create fun, high-quality outdoor clothes at an unmatched value.

“No hiker should ever have to fear getting a blueberry stain on their expensive outdoor pants again,” they note in their About Us page on the company’s website.

Images, data and graphics courtesy RevolutionRace