RVRC Holding AB, the parent of the Swedish outdoor brand RevolutionRace, reported slight gains in sales and profits in the fiscal fourth quarter ended June 30. Paul Fischbein, CEO, said in a statement, “Market conditions were weak, particularly in Germany.” North America also saw declines.

Net sales in the fourth quarter reached SEK 414 million ($43.5 mm) against SEK 405 million a year ago, representing an increase of 3 percent in local currencies and 2 percent in SEK.

Sales in the Nordics increased by 7 percent both in local currencies and in SEK during the quarter to SEK 108 million. Sweden recorded the highest growth in the region, at 12 percent, “which is a strong performance in a mature market,” according to Fischbein.

Sales in DACH increased by 3 percent in local currencies to SEK 231 (226) million, with weakness in Germany offset by double-digit sales growth in Austria and Switzerland.

Sales in Rest of the World decreased 3 percent in local currencies during the quarter to SEK 75 million. Excluding North America, sales in Rest of the World would have increased by 2 percent in local currencies, while total sales across all markets would have increased by 4 percent.

EBIT in the fourth quarter amounted to SEK 66 million, up from SEK 63 million a year ago, corresponding to an EBIT margin of 15.9 percent against 15.5 percent the prior year. Gross margin improved in the fourth quarter to 72.2 from 69.4 percent. Fischbein said, “During the quarter we invested in IT projects aimed at strengthening our platform for the future. This led to temporary increased IT-related expenses in the quarter and the projects continue into the next quarter.”

For the full financial year, net sales amounted to SEK 2,018 million against SEK 1,925 million, corresponding to an increase of 8 percent in local currencies. Sales increased in all regions. DACH grew by 10 percent in local currencies, the Nordics by 9 percent and Rest of the World by 1 percent.

Fischbein said, “It should be noted that sales in the United States were relatively high in the comparison period and have since been negatively impacted by changing market conditions.” Excluding North America, sales in Rest of the World would have increased by 6 percent in local currencies, while total sales across all markets would have increased by 9 percent.

Adjusted EBIT for the full year amounted to SEK 425 million compared with SEK 383 million, corresponding to an adjusted EBIT margin of 21.0 percent versus 19.9 percent a year ago.

Acquisition of Icaniwill (ICIW)
On July 10, RVRC announced the acquisition of Icaniwill (ICIW), a “fast-growing and profitable sportswear brand” that marked RVRC’s first acquisition. RVRC acquired 90.1 percent of ICIW, with an option to acquire all remaining shares. Fischbein said, “Through the acquisition of ICIW, we are taking an important next step in the development of RVRC Holding as a group. We are adding M&A to our strategy and strengthening the group with a fast-growing and profitable brand that complement RevolutionRace’s offering. We have developed an M&A framework and ICIW meets all our criteria. Adjusted to RVRC Holding’s 2025/26 financial year, ICIW reported net sales of SEK 470 million and adjusted EBIT of SEK 73 million.”

Financial Position and Capital Allocation
Fischbein said, “We remain in a strong financial position, and the acquisition of ICIW demonstrates how we can use our financial strength to create new opportunities for profitable growth. We maintain a disciplined approach to capital allocation, with investments in organic growth as our focus, while acquisitions, dividends and share repurchase are complementary tools that can be used to create long-term shareholder value.”

At the end of the fourth quarter, net cash amounted to SEK 313 million. Following the end of the quarter, RVRC Holding has increased its credit facility by SEK 300 million for working capital purposes, and the credit facility now amounts to SEK 900 million. As a consequence of the acquisition of ICIW, RVRC Holding is drawing on the credit facility and has per the date of acquisition a net debt position.

Sellable inventory was lower than at the corresponding point in the previous year, while the value of goods in transit was higher. Deliveries have increased since the end of the quarter, and inventory will be “well positioned ahead of the important autumn and winter season.”

The Board of Directors proposed a dividend of SEK 1.50 (1.35) per share. Fischbein said, “This is in line with the company’s dividend policy, and we are pleased to be able to continue increasing the dividend.”

Outlook
Fischbein said, “We are excited about the future and, through the acquisition of ICIW, we are taking an important next step in the development of RVRC Holding. RevolutionRace and ICIW are two complementary brands and, together, the group now has a stronger foundation, with annual net sales of approximately SEK 2.5 billion and adjusted EBIT of close to SEK 500 million.

“ICIW will continue to operate as an independent brand, with its existing management and its own identity. At the same time, our experience of geographical expansion provides good opportunities to support ICIW’s continued growth, particularly in DACH. ICIW will be consolidated from the acquisition early in July.

“For RevolutionRace, we will enter the peak season of the year from September with a healthy inventory position and attractive new products. It should be noted that the strong sales growth reported in the first quarter last year was supported by outlet sales and favorable weather in Germany. Market conditions, particularly in Germany, were weak in Q4 and continue to be challenging. Despite this, we note that RVRC Holding continued to deliver sales growth in local currencies (pro forma) in July.

Finally, I would like to extend my sincere thanks to our employees, customers, partners and shareholders, while also warmly welcoming ICIW’s employees to RVRC Holding. Together, we are now entering an exciting new chapter.”

Image courtesy RVRC Holding