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Introduction & Market Context
Rusta AB (STO:RUSTA) shares rose 4.59% to 74 SEK on September 10, ahead of the company’s Q1 2025/26 presentation delivered by CEO Göran Westerberg and CFO Sofie Malmunger on September 11, 2025. The Nordic home furnishings retailer reported continued growth despite currency headwinds, with particularly strong performance in its core Swedish and Norwegian markets offsetting weakness in Finland.
Quarterly Performance Highlights
Rusta reported net sales growth of 6.0% excluding currency effects for Q1 2025/26, with like-for-like growth of 1.2%. The company’s gross margin stood at 42.6%, down from 43.8% in the same period last year, while EBITA margin decreased to 8.8% from 11.4% in Q1 2024/25.
As shown in the following chart detailing Q1 performance metrics:
The company noted that Q1 started with a soft May across all markets, but saw strong net sales growth in Sweden (7.1%) and Norway (10.4%), while Finland underperformed expectations. Online sales declined slightly by 1.3% compared to the same period last year.
The following chart illustrates the performance across Rusta’s largest segments:
Currency headwinds significantly impacted the company’s profitability, as detailed in this breakdown:
Despite these challenges, Rusta maintained strong profitability in its core markets, with Sweden achieving an EBITA margin of 19.0% and Norway 11.9% (excluding IFRS 16 effects).
Expansion Strategy
Rusta continues to pursue an ambitious expansion strategy across Northern Europe. The company currently operates 227 stores across four countries: 121 in Sweden, 53 in Norway, 43 in Finland, and 10 in Germany. The retailer has 47 signed or approved new locations and has identified 180 prioritized store locations for future expansion.
The company’s geographic presence and store pipeline are illustrated in this map:
Management indicated they are targeting the upper end of their previously announced range of 50-80 new store openings over the next three years, citing a favorable rental market and continued positive view on expansion potential. The company’s Club Rusta loyalty program has grown to 6.5 million members, representing a 12% increase year-over-year.
Strategic Initiatives
Rusta highlighted several strategic initiatives aimed at driving future growth and improving operational efficiency.
The company has begun implementing a concept renewal program across all stores between weeks 32-37, featuring improved store layouts and communication. Early performance data indicates the changes are delivering the expected 1.5-2% lift in like-for-like sales.
The renewed store concept is shown here:
Rusta is also expanding its product offerings with unique collections. The Elsa Form Kids line, which includes more than 30 items targeted at families with young children, has been "very well received" according to management:
Similarly, the company’s new Hotel Collection, described as "affordable luxury" for bedrooms and bathrooms, has reportedly sold well:
On the operational side, Rusta is implementing an automation system at its distribution center, expected to be completed by spring 2026. The project is on track and includes a bonded warehouse implementation, with anticipated annual cost savings of approximately SEK 30 million.
Forward-Looking Statements
Rusta reaffirmed its medium-term financial targets, including annual average organic net sales growth of around 8% and like-for-like growth above 3%. The company targets an EBITA margin of around 8% in the medium term, with earnings per share expected to outgrow net sales and EBITA due to business model scalability.
The company’s financial targets and dividend policy are detailed here:
The Board has proposed a dividend of SEK 1.45 per share, up from SEK 1.15 last year, representing 47% of net profit for the year.
Looking ahead, management noted that August sales were in line with Q1 performance, with Finland remaining challenging but gross margins improving. The company expects foreign exchange effects to have a net positive impact on gross margin during the second half of the fiscal year.
As summarized in this slide showing events after the quarter:
All current projects are progressing according to plan, including the distribution center automation, bonded warehouse implementation, and concept renewal rollout. The company remains optimistic about its expansion opportunities and is guiding toward the upper end of its 50-80 new store target range.
Full presentation:
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