Q3 2025 Rusta AB (publ) Earnings Call Transcript
Key Points
- Rusta AB (publ) (OSTO:RUSTA) reported a net sales growth of 7.3% for the third quarter, with a like-for-like growth of 4.3% in local currencies.
- The company successfully opened new stores, expanding its network to 220 stores, with plans to open 50 to 80 more stores in the next three years.
- Rusta AB (publ) (OSTO:RUSTA) experienced a significant increase in customer footfall and higher ticket item purchases, particularly in Sweden, indicating regained consumer confidence.
- The company has a strong balance sheet with a low net debt, allowing it to finance its growth internally without the need for bank loans.
- Rusta AB (publ) (OSTO:RUSTA) is launching an updated store concept across all its stores, expected to boost like-for-like sales by 1.5% to 2%.
- The company faced currency headwinds due to the strengthening of the Swedish crown against key trading currencies, impacting sales and gross margins.
- Rusta AB (publ) (OSTO:RUSTA) reported a lower gross margin of 43.5% in Q3, down by 0.9 percentage points from the previous year, due to negative currency effects and planned campaigning.
- The German market remains challenging, with underperforming stores and a hesitant market development affecting sales.
- Freight costs presented headwinds in the third quarter and are expected to continue into the fourth quarter before potentially decreasing.
- The company anticipates a delay in reaching its gross margin target range of 44% to 45% due to current exchange rate volatility.
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And welcome to the presentation of Rosta's third quarter, the important months from November until January, including of course the Christmas sales. As usual, it will be myself, Göran Westerberg, CEO, Rosta presenting together with Sophie Malmunger, our CFO.
We have a quite simple agenda today. I will take you through a business update where we will go through the results, but also TRY to explain what has happened during the quarter and also what we believe is ongoing. Sophie will take you through a deep dive in the financial performance and after that we will summarize, we will talk a little bit about the current trading and the outlook and then open up for questions and answers.
Right, let's start with the business update and as usual, I think it's a good idea to have a look at the store network. We're now up to 220 stores in, all our markets. We added a new store actually yesterday here in Peru outside Stockholm, and we also open up one new store during the quarter.
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