WS 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, is reporting that net sales for first quarter increased 51.8 percent year-over-year (y/y) to SEK 960.5 million, compared to  SEK 632.9 in the 2015 Q1 period. Organic currency-adjusted (ca) growth increased 14.7 percent y/y.

The growth was attributed to, among other things, strong sales in cross-country and alpine equipment during the beginning of the quarter, as well as a strong end to the quarter with good turnover in cycling and running, together with full-year effects from companies acquired after March 2025.

“The snowy winter created good opportunities for our specialist winter sports companies, with companies like Pölder Sport and Skicom (Bromma Skidsport and Udens Sport) succeeding well in planning, inventory management and sales to meet the high demand,” stated company CEO Ted Sporre in the company’s quarterly report. “The winter climate led to lower demand for e.g. our cycling companies, but this changed in March when warmer temperatures contributed to a strong end to the quarter. Among others, Cykelkraft, the companies in benefit bikes (Bikelease and BENY Local), as well as RunningXpert within running, contributed to strong growth during this early part of the spring season. This illustrates the benefit of our diversification across different sports and companies, where we meet customers’ needs regardless of the season and weather conditions.”

During the quarter, WeSports Group acquired shares and obtained a controlling influence over NG Partners AB which operates e-commerce and retail stores within golf, Renew Group Sweden AB which owns and operates the floorball brands Unihoc and Zone, and Greenspire Invest AS which operates bicycle stores in Oslo under the Birk Sport brand.

Since the end of the quarter, the company has increased its ownership stakes by acquiring the remaining shares in Bikelease Sweden AB in which the ownership stake has increased from 60 to 100 percent, and in Skicom Sweden AB (Bromma Skidsport and Udens Sport) in which it has increased from 51 to 80 percent.

Since the end of the quarter, Vartex AB has acquired the racket sport specialist TennisShopen Scandinavia AB, which will be integrated with WeSports Group’s specialist retailers within racket sports. During 2025, the company generated sales of around SEK 15 million.

Profitability
Adjusted gross profit amounted to SEK 341.8 million, or Adjusted gross margin to 35.6 percent of net sales, in Q1, compared to SEK 218.1 million, or 34.5 percent of net sales, in the year-ago quarter. The 110 basis-point y/y improvement in the gross margin was partly driven by increased sales of seasonally strong products during the beginning of the quarter, combined with an increased share of own and controlled brands. In addition, newly added companies contributed a positive mix effect compared to the previous year, which offset the negative impact of the distribution business during the previous first quarter 2025.

Personnel costs increased by 53.4 percent y/y and amounted to SEK 115.2 million during the quarter. Other external costs increased by 46.6 percent and amounted to SEK 162.9 million. Personnel costs in relation to total sales increased by 10 basis points, while other external costs decreased by 60 basis points compared to the first quarter of 2025. During the quarter, costs were reallocated from other external costs to personnel costs as a result of parts of the Group’s warehouse management being taken over in-house. This, along with acquisitions of companies with what are, to some extent, different cost allocations explains the change between personnel and other external costs. Overall, the quarter was said to be characterized by strong cost control along with a general increase in leverage in efficiency, which contributed to the decrease in total operating expenses in relation to revenue.

Adjusted EBITA increased SEK 18.8 million to SEK 38.4 million. or 4.0 percent of net sales in Q1, compared to Adjusted EBITA of SEK 19.6 million, or 3.1 percent of net sales, in the prior-year Q1 period. Strong sales growth with increased gross margins, combined with increased leverage on both variable costs such as outbound freight, marketing and warehouse handling costs, together with a lower fixed cost base in relation to sales reportedly contributed to the increased profitability. Additionally, acquired companies were said to have contributed a changed margin mix to the increased adjusted EBITA margin in the quarter.

Profit for the period amounted to SEK 7.8 million, compared to SEK 4.3 million in Q1 2025. Earnings per share before dilution amounted to SEK 0.28 in Q1, compared to SEK 0.27 in Q1 2025.

“During the quarter, we continued our focus on profitability and cash flow,” Sporree continued. “Inventory build-up ahead of the upcoming high season is typical for the first quarter, but also a deliberate prioritization to secure supply and capture growth opportunities in an uncertain macro environment. Given this, it is natural that the cash flow during the first quarter is negative, but above all we achieve a major improvement compared to last year. This, together with an improved inventory turnover rate, demonstrates that our initiatives are yielding results.”

Balance Sheet and Cash Flow Summary

  • Net cash amount to SEK 11.9 million at quarter-end.
  • Cash flow from operating activities amounted to negative SEK 11.9 million in Q1, compared to negative SEK 65.3 million in the year-ago period.
  • Cash conversion amounted to negative 68.3 percent of adjusted EBITDAaL, compared to negative SEK 352.7 million in the 2025 first quarter.

Outlook
Sporre said the geopolitical situation and uncertainty in the Middle East currently have no material impact on the Group’s operational activities or supply chains.

“Thanks to a high degree of diversification and a strong Nordic base, WeSports Group is well positioned in the current market environment,” he noted. “Historically, periods of reduced travel and changing mobility patterns have also driven demand shifts to our advantage. We continue to see potential for increased penetration within our mobility businesses – particularly in bicycles, e-bikes and cargo bikes – as consumers prioritize local activities and cost-efficient transportation alternatives. We are closely monitoring the development and maintain a high level of operational preparedness to manage different scenarios. We remain committed to driving our strategy with a focus on profitable growth, while currently maintaining a strong financial position with net cash. In addition, we continue to see a sports and health trend that remains strong.”

He said that together, this lays the foundation for reaching the company’s financial targets – net sales of SEK 10 billion in 2031 and an adjusted EBITA margin of 7-8 percent.

Image courtesy WS WeSports Group


See below for additional recent SGB Executive coverage of WeSports:

EXEC: WS WeSports Group AB Expands Stakes in SkiCom Sweden AB and Bikelease AB