RVRC Holding AB (publ)

come to this conference call where we will address the report for the third quarter of the financial year 2025 and 26. Our financial year starts 1st of July and ends 30th of June. So Q3 means the period from January 1st to March 31st. My name is Paul Fischbein and I am the CEO of Revolution Race. And joining me today for this conference call, I have the company's CFO Jesper Alm. And for those of you who are new to the Revolution Race story, I will start by giving you a brief introduction. Revolution Race is an international auto brand offering auto products, mainly clothing, but also shoes, bag and other auto products. Everything started with pants and that category is still the largest product category. We operate with a D2C business model, meaning that we skip the middleman and sell our products directly to our customers. And we do this mainly via our own website, but also through marketplaces such as Amazon. And with our D2C business model, which is important to understand, we can secure our competitive offering and at the same time also maintain industry leading margins. As a digital player, our brand is very much built together with our community on social media. Today, we have 2.4 million followers on the social media platforms and over 800,000 reviews on our website. And the company Revolution Race was founded in 2013 and launched in 2014. And we have been listed on Nasdaq Stockholm since June 2021. um if we continue this picture illustrates our international presence we have today customers in around 40 countries with 19 localized web shops however we do focus our efforts in 10 countries in europe and also on top of that operate three physical stores in sweden We design all our products in-house and work together with more than 25 suppliers for the production in Asia. Now let's take a look at the performance and sales development for the third quarter. Net sales for the third quarter amounted to 487 million Swedish kronor, resulting in growth of 5% in local currencies compared to last year. Despite the continued uncertain market environment, we continue to gain market shares and strengthen our market positions in many markets. During the quarter, net sales, margins and earnings, they were negatively affected by FX, as the majority of our sales are generated in currencies other than SEC. That's around 75 to 80% is generated in euro, while the reporting currency is Swedish krona. And at the same time, gross margin improved, which is partly related to the weaker US dollar versus the Swedish krona. Let's have a look at the net sales development by region looking at that. Sales increased by 7% in local currencies. Austria and Switzerland continued to perform very well and grew more than Germany. And Austria was our third largest market in the quarter. In Germany, which is our largest and most important market, we continue to grow, strengthen our market position, but also note signs of overall weaker consumer confidence. In the Nordics, sales increased by 6% in local currencies and Sweden, the biggest country in the Nordic region, grew by 12%. And in the mature, we believe Sweden is a mature market, we see this as a clear sign of strength. And in the rest of the world region, sales decreased by 4% in local currencies. But bear in mind that sales in US peaked during a Q3 last year and have since then been negatively affected by changing market conditions, including tariffs. And if we in fact exclude North America, the rest of the world region would have grown instead by 2% in local currencies. And for the total group, sales would have increased by 6% if we exclude North America. The quarter, I've been eventful and during the quarter, We completed the relocation of our Nordic warehouse operations to a new automated logistics center just north of Stockholm in Sweden. This new warehouse will make it possible to facilitate and handle higher future volumes. And it also strengthens our customer promise and lays a good foundation for continued future growth. The relocation was carried out without any major disruption to operations, apart from some temporary impact on product availability during a few days. And I would like to take the opportunity here to thank our staff and partners for a very well executed project. Let me now also move on to product development and our latest launches. We continue to develop and broaden our product range, driven by customer feedback and with the aim of creating more opportunities for continued sales growth. During the quarter, we further developed and expanded the Nordband series. These are our best-selling pants. The updates include an improved fit, some additional models and a broader range of lengths and early feedback from customers have been very positive. We also launched our first dedicated cycling collection covering everything from mountain biking to road cycling and our Alpine category which we launched a few years ago, continued to develop well. Sales remained strong during the recent season, and we see good potential for continued growth in the coming seasons. Let's continue to look a little bit closer at the third quarter. We continue, as I said, to combine growth with higher profitability and again show that we are one of the most profitable players in the outdoor industry. Adjusted EBIT in the quarter amounted to 105 million Swedish krona. This corresponds to an adjusted EBIT margin of 21.4% and this is in line with our target to maintain a 20% EBIT margin. Gross margin for the quarter was 71% and as we've said earlier we saw negative currency effects compared to last year from the strongest Swedish krona as most of our revenues are generated in other currencies while we at the same time report in SEC. But at the same time a weaker US dollar has had a positive impact on purchasing costs and we continue to have a positive view on the development of the gross margin in the coming quarters. We continue to have a strong financial position with a net cash position of 351 million Swedish krona and a 600 million Swedish krona credit facility which was unutilized at the end of the quarter. During the quarter we received 56 million in cash from the exercise of warrants under our incentive program and we also continued with our share repurchases program. Repurchasing shares for 62 million in the quarter and we maintain a long-term approach to the share repurchase program. If we continue, we note that in April we opened our third store, this time in Haparanda, just on the border between Sweden and Finland. And just after some weeks, we can say that the store is outperforming our expectations and we will continue to selectively look for more store opportunities also outside of Sweden. But we will come back when we have more news on this topic. And with that, I would like to hand over to the company CFO Jesper Alm who will present and walk through the financial performance. So with that Jesper please go ahead.

Well thank you Paul and good morning everyone. I will briefly cover the financial performance during the third quarter of the financial year 2025-26. starting with gross profit, which amounted to 345 million SEK for the quarter compared to 337 million a year ago. And this equals a gross margin of 71% compared to 69.4% last year. The slight increase in gross margin is mainly attributable to currency effects on net sales and goods for resale and product mix. Personal expenses are slightly higher compared to the same quarter last year and the number of full-time equivalents was 145 compared to 132 last year. The increase includes six full-time equivalents for our retail operations. Personal expenses as share of net sales were higher than last year. Other external expenses were 204 million SEK compared to last year of 200 million SEK and as a share of net sales of around 42%. The number was approximately in line with that of last year. Adjusted EBIT for the quarter amounted to 105 million SEK compared to 101 million SEK a year ago. and EBIT for the quarter amounted to 105 same as adjusted but compared to 80 million a year ago and this translates to an adjusted EBIT margin of 21.4 percent and it was 20.8 last year as well as an EBIT margin of 21.4 the same obviously and compared to 16.4 percent last year Adjusted EBIT last 12 months amounts to 422 million and the adjusted EBIT margin LTM is 21%, so above the financial target of 20%. The balance sheet remains stable, no news really, major changes within Major changes within current assets with lower inventory and higher amount of cash and cash equivalents. The financial position is strong and we have a solid cash position of 368 million at quarter end or a net cash position of 351 million when adjusting for lease liabilities of 17 million SEK. Credit facility 600 million SEC is available and undrawn. Cash flow from operating activities came in at 18 million and that should be compared to a negative 110 million for the same period last year. Inventory amounts to 409 million, of which 369 was goods in warehouse, compared to 543 million a year ago. Goods in transit has decreased from 38 million last year to 21 million this... Yeah, to 21 million. To mitigate the delivery risk in uncertain environment and to maintain a balanced inventory position, we assess that inventory levels will need to increase somewhat from current levels. Networking capital decreased to 148 million compared to 295 million a year ago. And this is primarily driven by lower inventory levels. We continued our repurchasing of shares in line with the AGM mandate during the quarter acquiring shares for a total of 62 million SEK and this brings the repurchase amount to a total of 90 million under the current mandate of 200 million SEK. The current holding of treasury shares amount to 1.6 million shares and that is equivalent to 1.4% of outstanding shares. And with that, it's over and out from me, Paul.

Thank you Jesper. So to sum things up, we have shown over the years and in this quarter that we can continue to grow even in challenging market conditions with an industry leading profitability. competitive outdoor offering combining high quality with attractive prices we are in a strong position we have also a strong financial position and a loyal customer base which gives us a solid foundation for continued profitable growth over time and we note also continued sales growth during the first weeks of april And that concludes our comments on the result. Before we finish, I would like to thank everyone who has contributed to our performance during the quarter. That includes our employees, customers, partners and shareholders. And with that, we are now happy to answer questions. I asked the operator, do we have any questions?