RevolutionRace, the Swedish performance apparel maker, reported a quarter of continued profitable growth in Q1 and said it continues to strengthen its market positions. During the third quarter, sales increased by 5 percent in local currencies year-over-year (y/y). Net sales in the third quarter amounted to SEK 487 million, a slight improvement versus the 2025 Q1 period. Company CEO Paul Fischbein said profitability remains at industry-leading levels.

Sales in the DACH (Germany, Austria, Switzerland) region increased 7 percent y/y in local currencies. The company said Austria and Switzerland continued to show a positive trend, and Austria was overall the third largest market during the quarter. The company noted that in Germany, reports indicate that overall consumer confidence has weakened. “Despite this, we continue to grow and we assess that we are strengthening our market position in this, our largest, market,” Fischbein commented.

In the Nordics region, growth amounted to 6 percent in local currencies, while in the Rest of the World region sales decreased by 4 percent in local currencies.

Sales in the United States were at their highest in the year-ago quarter and have since been negatively impacted by changing market conditions, such as the introduction of tariffs. Excluding North America, the Rest of the World region would have increased sales 2 percent y/y in local currencies, and grew 6 percent y/y for total sales across all markets.

Profitability
The company said it continues to combine growth with high profitability, reinforcing its position as “one of the most profitable players in the industry.”

During the quarter, net sales were said to be negatively impacted by currency effects due to a stronger Swedish krona, as the majority of company revenues are generated in other currencies, primarily euros, while reporting is in SEK currency. The company said the weaker U.S. dollar had a positive impact on purchasing costs, and it continues to have a positive view on the development of the gross margin in the coming quarters.

The gross margin in the quarter amounted to 71.0 percent of sales, improving y/y from 69.4 percent in Q1 last year.

Adjusted operating profit (EBIT) for the quarter amounted to SEK 105 million, or an Adjusted EBIT margin of 21.4 percent of sales, compared to SEK 101 million, or 20.8 percent of sales, in the year-ago period.

Operating profit (EBIT) for the quarter amounted to SEK 105 (80) million, corresponding to an EBIT margin of 21.4 (16.4) percent. The result in the corresponding quarter last year included items affecting comparability of SEK -21 million.

Goods for resale decreased to SEK -141 (-149) million. Other external expenses amounted to SEK -204 (-200) million.

Personnel expenses in the quarter amounted to SEK -35 (-51) million whereof SEK -21 million in the corresponding quarter last year was related to items affecting comparability.

Net other operating income/expenses amounted to SEK 1 (-4) million.

Profit before tax amounted to SEK 105 (79) million. Profit for the quarter was SEK 83 (63) million.

Earnings per share before and after dilution amounted to SEK 0.77 (0.57).

Adjusted EBIT in the quarter amounted to SEK 105 million, or an Adjusted EBIT margin of 21.4 percent of sales, compared to SEK 101 million, or 20.8 percent of sales, in the year-ago period. The gross margin in the quarter amounted to 71.0 (69.4) percent.

Warehouse Relo
During the quarter, the company completed the relocation of its Nordic warehouse to the automated logistics center in Stockholm.

“Following the relocation, we are better equipped to handle higher volumes,” Fischbein suggested. “This strengthens our customer promise and creates favourable conditions for continued growth. The warehouse move was carried out without any direct disruptions to operations, except for some negative impact on product availability during isolated days.”

Financial Position
RevolutionRace said it continues to have a strong financial position, with an inventory of good quality, a net cash position of SEK 351 million and a credit facility of SEK 600 million, which was unutilized at the end of the quarter.

“During the quarter, we continued share repurchases in accordance with the mandate from the Annual General Meeting and repurchased shares for SEK 62 million during the period,” Fischbein said. “We continue to take a long-term view of the share repurchase programme. Further, we received SEK 56 million in cash during the quarter as a result of the exercise of warrants under LTIP 2022/26.”

New Products
In March 2026, RevolutionRace also launched its first collection of dedicated cycling products, designed to cover everything from mountain biking to road cycling. The launch was said to be part of testing new outdoor verticals to meet customer demand for a broader product range and to increase sales over time. The alpine category was launched a few years ago and has reportedly developed well. Sales of alpine products continued to show strong performance during the most recent alpine season and have the potential to continue growing in the coming seasons.

Stores
Following the establishment of the company’s first two physical stores in Stockholm, Fischbein said they continue to evaluate opportunities for additional store openings.

“In April, we opened our store in Haparanda, located near the border between Sweden and Finland. The opening day was very well attended, with customers from Sweden, Finland and Norway, clearly highlighting Haparanda’s role as a cross-border retail destination,” the CEO noted. “We will continue to selectively evaluate further locations, including outside Sweden.

He said the physical stores are meant to complement e-commerce by strengthening the brand, deepening customer relationships and contributing to increased sales, both directly in-store and indirectly through increased traffic and conversion online.

Outlook
Fischbein said the external environment remains uncertain, but he feels the brand is well positioned with a strong outdoor offering, combining high quality with attractive prices.

“Combining a strong financial position, satisfied customers and a competitive offering, provides a solid foundation for continued profitable growth over time and we note continued sales growth during the first weeks of April,” the CEO concluded.

Image courtesy RevolutionRace