Investing.com — Swedish eyewear retailer reported second-quarter core earnings above analyst expectations on Friday, with shares rising as much as 13% after strong subscription growth and a new partnership with footballer Erling Haaland helped underpin demand.
EBITDA rose to 513 million Swedish crowns, above the 497 million crown average forecast in a company-compiled poll, while net sales of 2.05 billion crowns also topped estimates of 2 billion crowns.
The EBITDA margin was 24.6%, above the 24.48% consensus average compiled by Modular Finance on behalf of Synsam from five contributors. The consensus estimate did not include a high/low range.
Net sales increased 11.3% year-on-year from 1.841 billion crowns, with organic growth of 9.8%, up from 9.1% a year earlier. Net sales from spectacles subscriptions rose 16.6% during the quarter.
Gross margin improved to 73.6% from 73.1%, which the company said was driven by sales mix, including a higher share of Synsam Lifestyle subscription extensions, reduced discounts and operational improvements in the ordering process.
EBIT rose to 290 million crowns from 267 million crowns, with the EBIT margin at 13.9%, down from 14.2% a year earlier. The company said the earnings performance reflected increased sales and a higher gross margin, partially offset by a large number of new store openings in 2024 and 2025. Depreciation for the quarter increased due to a higher pace of greenfield expansion in previous quarters.
Profit after tax increased to 192 million crowns from 114 million crowns, while earnings per share rose to 1.35 crowns from 0.79 crowns. Synsam said one of its group companies received a positive ruling from the Swedish Tax Agency during the quarter regarding historical interest deductions, resulting in a total positive tax effect of 35 million crowns for the quarter.
Cash flow from operating activities increased to 435 million crowns from 413 million crowns. Net debt totalled 3.180 billion crowns at the end of the period, compared with 3.040 billion crowns a year earlier and 2.975 billion crowns at year-end 2025. Synsam said its share buyback programme increased net debt by 200 million crowns in 2026.
During the quarter, Synsam announced an exclusive strategic partnership with Erling Haaland, including the launch of an eyewear, sunglasses and sports eyewear collection with a sales period of approximately two years. The partnership also marked Synsam’s launch of online sales in select European markets.
Eight directly owned stores were opened during the quarter. After the end of the period, 761,000 Synsam shares were purchased for 42 million crowns under the company’s share buyback programme, aimed at adjusting its capital structure.