RVRC Holding Q4 2024/25 slides: modest growth amid challenging market conditions

Introduction & Market Context

RVRC Holding AB (STO:RVRC) presented its Q4 and full-year 2024/25 results on August 12, 2025, highlighting the outdoor apparel company’s performance in what management described as a "challenging international market." The Swedish-based direct-to-consumer brand reported modest growth for both the quarter and full year, while maintaining industry-leading margins despite some pressure from currency effects.

The presentation comes at a challenging time for the company, with RVRC’s stock down 7.67% following the earnings release, trading at 40.92 SEK. The stock has experienced significant volatility in recent months, with the price now sitting between its 52-week high of 51.20 SEK and low of 35.68 SEK.

As shown in the following overview of the company’s business model and key metrics:

Quarterly Performance Highlights

For Q4 2024/25, RVRC reported net sales of SEK 405 million, essentially flat compared to SEK 407 million in the same quarter last year when measured in Swedish kronor. However, in local currencies, the company achieved 4% growth, indicating that currency headwinds masked underlying sales momentum.

The company’s gross margin for the quarter was 69.4%, down from 71.9% in the previous year, with management attributing the decline primarily to "adverse currency effects and market mix." Despite the compression, these margins remain well above industry averages for the apparel sector.

RVRC’s adjusted EBIT for Q4 came in at SEK 63 million, representing a margin of 15.5%, compared to 18.3% in the same period last year. The company maintained strong cost control, with personnel and other external expenses as a share of net sales remaining in line with the previous year.

The following chart illustrates RVRC’s net sales development over recent years and quarters:

Detailed Financial Analysis

For the full fiscal year 2024/25, RVRC delivered net sales of SEK 1,925 million, representing growth of 5% in SEK and 6% in local currencies compared to the previous year’s SEK 1,840 million. This marks the fifth consecutive year of growth for the company, which has more than doubled its revenue since 2020/21.

Gross profit for the full year increased by 2% to SEK 1,344 million, while the gross margin declined slightly to 69.8% from 71.3% in the previous year. The company’s adjusted EBIT for the full year was SEK 383 million, translating to a margin of 19.9%, compared to 21.1% in FY 2023/24.

As shown in the following chart detailing the company’s gross profit and margin development:

RVRC’s EBIT performance over time demonstrates its ability to maintain strong profitability despite market challenges:

The company ended the fiscal year with a solid financial position, including a net cash position of SEK 177 million and an undrawn credit facility of approximately SEK 600 million. The Board has proposed a dividend of 1.35 SEK per share, representing a 13% increase from the previous year’s 1.20 SEK.

RVRC has been actively repurchasing shares, with 4.64 million shares repurchased during FY 2024/25 for a total of SEK 205 million. The number of registered shares has decreased from 112.9 million to 109.6 million.

The following chart shows the company’s cash flow and financial position:

Regional Performance

RVRC continues to expand internationally, with 75% of net sales generated outside the Nordic region during Q4. The company’s largest market remains the DACH region (Germany, Austria, and Switzerland), which accounted for 56% of Q4 sales.

Regional performance varied significantly during the quarter. The Nordic region showed the strongest growth at 15% in local currencies (12% in SEK), while the DACH region grew by 3% in local currencies but declined by 2% when measured in SEK. The Rest of World segment experienced a 5% decline in local currencies and a 10% drop in SEK.

The following chart breaks down RVRC’s regional sales performance:

Strategic Initiatives & Outlook

RVRC continues to build its customer community, reporting over 730,000 product reviews and more than 2 million social media followers. The company’s direct-to-consumer business model allows it to maintain close customer relationships while delivering what it describes as "affordable quality" through its factory-to-webshop-to-customer approach.

Management acknowledged that the "market environment remains challenging" but expressed confidence in the company’s preparedness, citing "strong margins, a solid financial position and a highly rated product range." Looking ahead to the new financial year, RVRC reported seeing sales increases in local currencies of "around ten percent" compared to the same period last year in the early weeks of Q1 2025/26.

However, investors should note that this optimistic early outlook contrasts with the company’s actual Q1 2025 results, which showed only a 2% year-over-year growth in net sales, according to a recent earnings report. That report also indicated that the stock dropped 17.14% following those results, suggesting continued challenges in translating early positive trends into sustained performance.

Inventory management remains a focus area, with inventory levels at SEK 521 million at the end of Q4, up from the previous year but down from Q3. Management described the inventory as "well balanced" and expects it to "gradually decrease during the current financial year."

As RVRC continues to navigate challenging market conditions, its strong financial position and established customer base provide a foundation for potential growth when market conditions improve. However, investors will likely be watching closely to see if the company can reverse the margin compression trend and deliver on its growth expectations in the coming quarters.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.