Very, very welcome to the presentation of the Q2 and the first half year. I'm pretty happy with Q2, actually, where we show a growth in both sales and earnings, and it also feels a little bit for the first time in many years, actually, that the market starts to be a bit more positive.

It's only one point I'm not happy with in this report, and that is the organic growth, where I was hoping for more than 4%, 4%, 5%. I think we pretty soon will be there.

We should also remember that we have several things that is happening this fall. For example, Dallas will start selling from, or distribution from, 1st of October.

I think the costs on Dallas is around 10 million for the first six months, and it will continue to cost money in the coming quarter. Then hopefully, and what I believe is that, and that is one of our biggest investment in many, many years, it will start contributing sales-wise, of course, from October, and profit-wise, I think it will be three to six months, and we will be up running at least break-even there.

It's lots of interesting things in front of us. Today 2,877 employees, 28 countries, and three different segments, as you know.

Maybe there I should say also that Sweden is now down to 20% of the sales, and it will continue to decrease due to the investments we are doing and the acquisition of Cotton Classic that are not there yet. Here is not much to comment.

I think based on questions we had earlier today, we have maybe a small misunderstanding regarding the tariffs, because back to the result is only the tariffs on sold goods. The rest is deduction of the stock value that will strengthen the margins coming quarters instead.

If you look at the figures for half the year, it's not any big effect of it. The result in Q1 should have been better than it was, and the result in Q2 slightly lower, you know that.

One big investment we also have done that we have not talked so much about is Toppoint, our company that producing pens, water bottles, and so on, that's moved into a new, fantastic facility in which was opened up in May. Also pretty big investment.

I don't have the numbers in my head, but yeah, it's another 250 million SEK in investment there. The quarter, net sales +14.6%, 12.3% are coming from Cotton Classic, and the integration there is going pretty well.

That include also what they sell of our own brands today, that are also increasing all the time, and 2.2% from organic growth. Again, there I'm not really happy yet.

We should be higher on the organic growth, especially due to all investments we have done and all the products we have launched last years and so on. If we look at the different countries, you can say I'm actually happy with all countries right now excluding UK, that has been very, very tough, and it continues to be very, very tough.

We also know that our competitors there have decreased their volumes, actually most of them more than we, but it's not a good development there. Operating profit, 295 million.

There I must say, due to all these investments we are doing with Dallas, with Toppoint, and so on, I'm very, very happy. The underlying profitability is very, very good, I would say.

We should also remember here that the second quarter and the first half of the year, we didn't had Cotton Classic last year. When we compare, we are taking in acquisitions on roughly 1 billion in a yearly turnover with an operating margin on 6%, 7% approx.

If we look at, to say, the old group excluding investments, I think those results are very, very good and could have been much, much worse, actually. What's holding it up is also, of course, a very strong gross margin.

I think I've said that for a few years now when it has been tough times that we will keep our gross margin, we will not use the price to deduct margin to increase sales. That, of course, sometimes it can be tempting to do that to blow up the growth, but I also know based on those 40 years that it's very, very difficult to raise again if you once have start cutting.

8 billion, yeah, 14.5%, 2.6 billion. Currency was negative with only 1% this report.

When it was as worst, we discussed that before, for example, in January this year, US was contributing -19% in currency, then it's a bit hard to show growth, actually. Promo 17.5%, and the main reason of that they are going very strong is, of course, the Cotton Classic, the acquisition that are in that channel.

Also retail sales up 5%, which I think is pretty good. I'm a little bit afraid actually on a backlash in Middle and South Europe in the third quarter due to that it has been very, very warm.

I don't have any figures to base that on, but when I talk with retailers there, it has been quite empty in the shops when it has been those really warm conditions. Cutter & Buck continue to grow well, and I think that that growth will really increase.

We also launched Tenson in US through Cutter & Buck right now. When Dallas open up, it gives us a very, very good chance to serve that part of US.

As an example, you can say if I take a simple example, all the sales before Thanksgiving, for example, that we have on the net, we have to quit three days earlier or cut order taking three days earlier in South US today than we do in North US because we can't deliver before. That will means a lot, and I think they will actually continue to increase, and they have a very good growth.

In retail, it was in this quarter mainly Craft, but also Clique. We were a bit lucky there.

We were not involved in any way, you can say, in the World Championships of football. We had, unfortunately, yet no national teams playing in Craft either.

What we did and what really shows the strength again about stock is that Sweden was qualifying so late, the chains couldn't pre-order, or they didn't dare to pre-order in time, and we could supply from stocks. Actually, we sold into Swedish merchandise, you can say, to Intersport, Åhléns, Team Sportia, yeah, everybody excluding Stadium.

That was very, very good, and it's nice to don't pay the sponsoring fee and then get the merchandise. Here you also see the different segments.

In one way, I'm also pretty happy there that all three is growing, even if it was very little, 2.7% on Gifts & Home Furnishing. It's at least a growth.

Sales per geographic area: North America increased, and Sweden was a very nice increase, I must say, because if you look at the market share as we already have and continue growing, it's very strong development. Benelux slightly up.

Nordic up, and there are Norway going quite strong. Now we finally see the effect of all the national teams we have in Norway.

It took longer time than we thought, but now it's paying off. Rest of Europe heavily up, and that's mainly due to Cotton Classic, that acquisition.

Others quite heavily down, and that's only trading. As we have said every report, trading is extremely volatile up and down, you can have two weeks coming in with weekly sales +100%, and then you have one week -70%, and so on.

That's how that business is. It's still very profitable for us, and it's a very good cash flow, we want to continue this.

There you have to get used to that it can come a very good quarter, and next quarter can instead be looking bad, and then good again, it will continue that way. The reason is, of course, that it's quite few number of clients compared with other channels, and it's very big orders.

Here it's more or less if you are unlucky to or lucky to deliver in the right quarter if you look at shorter. As the margin we have talked about, and there we should also remember that the majority, I think 65 million SEK if I remember correctly, is right down on the stocks due to the tariffs, which give us a good chance to hold a strong margin in the US market the coming quarters.

We will continue the same way. We will not use discounts and so on to blow up sales.

Very good gross margin the coming quarters that we have in front of us. We should also remember that, again, Cotton Classic came in in the figures you compare with more than 1 billion in sales with a gross margin on what is it now?

It's having increased a little bit, but 27%. It was 25%, if you take away acquisition, I think actually it's the strongest gross margin we ever had.

External and personnel costs continue to increase, and they will continue to increase. I think also that we will see a more normal cost increasing, especially investments that are taking a cost from latest third quarter, maybe next year.

It's a little bit hard to say. Then I talk also about existing business.

If we do more acquisitions during that time, and so on, or we decide to establish one more new big warehouse, which I don't think we will do within one year, but if we do, it can of course affect. If you look at the normal business, it will come down.

There we maybe should point out once again, because I had some question on that, too, that the difference in the past, when you change ERP systems, you put it into the balance sheet, and then you write it off on five years. Now it's in the cloud, and you have to take a big part of it as cost day one.

If you look for the coming years, we will have quite much lower depreciations of that. I think those changes in the bookkeeping, it's really not good, because it's very difficult sometimes for analysts and investors to compare.

I think with the old, do you dare to guess, Anna, if it was working the same way as in the past, you took it as an investment in the balance sheet, the results so far this year would improve?

I don't dare to say, but it's a big difference, because we have already started to use the system in two entities, and we have a majority of the cost for the entire template. It's a huge difference.

It's more than... So.

Therefore again, I say if we can hold an operating margin on this level due to all this investment at the same time, I take it as a proof that 20% is absolutely reachable. Again, excluding acquisitions.

That we love to buy companies for 1 SEK, and 1 SEK companies is not very profitable when you buy them. We want to continue the same type of acquisitions if we can and if we find them.

You can say that all those kind of acquisitions has been quite successful over time, excluding Orrefors Kosta Boda. We are continue to look at companies that are in problem.

It's of course not easy to buy them, and especially not to find them. Excluding that, I think the margins are very, very good.

Yeah, 11.3% in operating, and you can say you see on Corporate since Cotton Classic is 100% into the corporate sector, it's lower there. Sports & Leisure increased quite good.

There also the minority of the money we came back from tariffs is in Sports & Leisure. That's also one reason.

Gifts & Home, at least finally a positive margin and not negative. There, I think that in that area, we will never reach any 20%.

We should manage 20% in average anyhow. I'm very happy if we can actually come up to at least 10% so we can quit consider it as a problem.

Cash flow is also quite okay, I think, due again to the investments we're doing. I think it's even strong.

In the cash flow, the effects is not yet seen by the tariffs either. I'm quite pleased with that.

Yes. Also in addition, Torsten mentioned the ERP investments.

They are not shown in investing activities in cash flow, but in the cash flow from operating activities. That's why that's...

Balance sheet continue to be, I would say, very strong, which we are very happy for. We still have room for more acquisitions and later on more establishments, which I think is also very, very important to have a strong balance sheet.

Dallas: 10 million units we can store there, and it's the most advanced in automation and technology in the whole group, including autostore, embroidery direct to garment decoration, and so on. The main reason is, of course, that we have a lot of actually also existing clients that we don't serve in a good way today in that part of US.

I think it will go quite quick to come up to break-even. If we can reach break-even six months or something on that fulfillment center, I think it's very good, and it will really means a lot for the future growth in the US market.

I got the question earlier today how big we can be in US or what is the level we can take, and we should remember that we are still extremely small in US. I haven't counted the market shares because I don't have enough zeros in my calculator.

If we really succeed there, nothing is easy, but theoretically, if we can at least do 10 times of what we're doing today within six, seven, eight years. It's a very interesting market, and it's also interesting because I was misjudging US, as I said in an earlier report, because I thought that US should be our most difficult market due to all things with everything from tariffs to Trump's different decisions to the war in Iran, and so on.

I repeat that it seems that Americans have some kind of gene in the body that we don't have in Europe, that they just continue buying whatever happen. That's actually a feeling.

US, I think, ever have been one of the strongest markets also in general the last years. It will be a very interesting, and I'm quite excited to this.

I go to US on Saturday morning and will meet the people responsible on Monday. Toppoint, we have not talked so much about before, but it's a company we have doing hardware located from the beginning a Dutch company, but located with their production nowadays in Poland since quite many years.

There we start up 45,000 square meter big production facility, started in May. It has also cost a lot of money, also in actually decreased sales for a short while.

It's very modern, 25 different printing techniques that we are quite alone about. Many products available in 24 hours, which do that we are at the same level or better than the competition after this.

This will also be very, very interesting to see what we can do there. You can say we have still two areas on the corporate that we in a European perspective are quite small, and Toppoint and hardware is one of them, and the other one is workwear.

It would be theoretically easier for us to continue taking market shares in this area than it is on corporate in most European countries. This I mentioned.

Without stock, we have lost all the sales, just so you know. This is again a proof that especially on merchandise and happenings and those things, it's speed to market that are absolute most important thing.

Now we hope that in more of our big countries in the future, the countries qualify, but very late. Too early is not good.

For the first time also, we have a champion playing in Craft. It was Aarhus that won Danska Superligaen, which we are very happy for.

Craft is really moving forward on the teams. Another nice example was that you had the first game, I think the second game is still left to play, between IFK Göteborg and KAA Gent.

I think it was the first time it was two teams playing in Craft in a European Cup. It's really moving.

Here we can also see sometimes it's very, very difficult for us to also give forecasts on some things, because if Aarhus wouldn't win, then we probably have sold merchandise for 20, 20 million lower. This is also quite important.

I have nothing against Sirius, but now I hope that Hammarby is forcing. It would have been very nice to have both Danish and Swedish champions as well.

This is one of the biggest events we ever have supplied: Royal Run in Denmark, 112,000 runners. I think it was in six cities, or eight cities maybe even.

All of them, those 112,000, run in a Craft T-shirt. It's fantastic also, not only fantastic for the sales, it's also fantastic for the exposure of the brand.

It's happened quite a lot in those areas. Half year: it's not very much to say there in one way, because it's more or less following Q2, and you don't have any big effect of tariffs if you look at half-year figures.

As I said before, Q1 would be a bit better, Q2 a little bit worse. Half a year is quite correct.

Yeah, 4.9 billion, million, not billion yet. 10 10.2% up in sales, Corporate 14.4, and Retail 2.0.

Again, the big difference there is also that Cotton Classic, of course, was not in first half of year last year. Not too much to say here.

Geographically, you have pretty much the same picture: North America -2% is due to currency, and the currency effect there for first half-year, I don't have in my head, but do you have that, Anna? Soon.

Okay. Sweden +6%.

There I must say that if I'm a little bit negative surprised in, for example, Great Britain, I'm positively surprised in Sweden, because to have that growth rate with the big market shares we have here is very good, and especially when you don't use discounts and so on, you really grow on full margins.

-8.6%.

On half a year, the local currency US is +6% then. Benelux +5%, and there we now start see positive effect of the automations we did in New Wave Netherlands last year.

We have been operating there since May last year, and for a while we lost sales due to bad service when we had all the movement, and so on. Now we start increasing again.

That's good. Other Nordics 5%, and rest of Europe +43%.

The reason for +43%, the main reason, I should say, not the only reason, but the main reason is, again, Cotton Classic then. Others -23%, and that's one single reason, and that's trading came in low in Q2.

Corporate -33 million, Sports & Leisure +57, and Gifts & Furnishing an improvement of 17 million. Cash flow also pretty happy with that, also if you look at half a year.

That's, of course, also one of the reasons we continue to have a strong balance sheet, which we will keep strong even if we do acquisitions.

That's more or less that. I think we open up for questions instead.

Yes. Do you want a microphone?

Yes, you should.

Thank you. Andreas Lundberg with SEB.

If I start on the outlook comments, it seems that you turned somewhat more positive versus previous quarters. What are you seeing?

Where do you see it and where do you don't see it? Thank you.

We see more positive clients, more positive comments. We see better figures.

Again, I'm a little bit scared without having figures how it was in Mid Europe during this summer. Otherwise, sport retail, for example, the index there have improved.

The clients are more positive when I talk with them, and it feels also more stable. Then I should maybe add that it can still be surprises, because I go to bed in the evening and I don't know what I'm doing during the night when I wake up.

I think it can still be a little bit up and down, but it feels much better than six months ago. Also the first time we really will see if I'm right is pretty soon, because we start doing the pre-sales in sport retail right now, and do it for six, eight weeks in forward.

Then we will see if the chains really also act as they say, that they are more positive and increase the pre-ordering. Because if you look, for example, if the sports index is good in Q2, we will notice that in Q3 when they place pre-order, and it will get into our P&L in Q1, Q2 when we deliver the pre-orders.

Also that corporate market feels more stable. People are also there talking more positive.

Then you can say sometimes it's difficult to judge if it's of that they are more positive because we are launching new products and do all this investment or if they are more positive in general. I feel more confident than six months ago.

Different topic: you mentioned a few things about the Dallas factory. Can you more broadly talk about what it will mean for your distribution or logistics in the US, and how will the other facilities be affected?

Thank you.

I don't think it will be affected so much. I should also say now we will not invest in any new big warehouse in US, at least for coming three, four years.

If the outcome is what we think on the Dallas warehouse, we need another two facilities in US, to really cover the country. That will be earliest in three, four years.

We don't think it will hurt so much, because we really give a poor service in that part of US. We are covering down to I shouldn't say South US, because we are pretty fast down to California, but if you come to Southeast or South Mid, we are very, very slow.

We have several competitors there with warehouses in that area, and they are today much better than we are. They will not be better than we are three months from now.

If I may, a last one, and I will let someone else in. Speaking about the US and then the teamwear, can you give us an update on teamwear or club in the North American business?

Thank you.

It's moving forward. I could say that it's a little bit less than I expected, takes a little bit longer time, and it's also some differences we really need to learn.

For example, I think you all know that most of the teamwear business is running through schools and not through teams, and so on. You have that in several sports, the whole league is blocked because they sell the league, they don't sell the teams, and so on.

It's a positive development, and I still believe in it on the same level as I did from the beginning. It's working due to service, and so on, that really have been one of our weapons in Europe.

The competitors is not better in US than they are in Europe. Yeah.

Before you ask, I can also comment that the shoes also continue to increase, but a bit slower there, too.

I'll take the chance to jump in. Karl-Johan Bonnevier, DNB Carnegie.

You mentioned that you would have expected 4%, 5% organic growth in the quarter, and still Craft looks good and a couple of other things. Where do you see the shortfall compared to your expectations?

Mainly, you can say it's actually trading. It's also if you look geographically, Great Britain.

There I thought we should have a better effect also on the launches or the merge of our two companies there. I don't know the organic growth if trading had delivered the same, have you checked that?

3.8%.

Looking in UK, is that B2C that is not really working compared to your expectations?

Yes. You can say that Cotton Classic is actually doing at least what we thought, and maybe even better.

It's going quicker. B2C are going slower.

You are correct.

Looking at the custom duties refunds, you mentioned most of it's coming through Sports & Leisure as I understand it.

Yeah. I should be clear there: as a segment.

This is very tricky, because if you look at channels, Cutter & Buck that have received most is in the segment Sport and Retail, but their main sales is to channel Corporate. It's a difference between those, and it's this bloody IFRS.

We can agree on that, I think, all of us. A table there is in the report.

Looking at both the inventory impact and the cost of goods sold impact, when would you see the similar kind of effect on cash flow? Because I guess there's a delay there compared to what you see in the P&L.

When you look now at the inventory levels at the end of the quarter, you had a continued inventory build-up in Q2, what kind of growth rates do you see that being able to sustain if the market is there in the second half?

Organic, we can at least go up to 10% if we can sell so much. The stock is not the problem.

Excellent. Thank you.

Don't take that as we will have 10% organic. That's how we could.

Daniel.

Emanuel Jansson, Danske Bank. Moving forward to the organic then, given that you are in this heavy investment phase, is it fair to assume that you need to grow by double digits organic in order to sustain higher EBIT margin at the moment?

We have a very big, to say, fall-through in the P&L, we don't need to go up to the 10. If we really should be able to deliver a high operating margin, 5% organic.

We should also remember that, sorry to say Dallas all the time, but we can take Toppoint also, when you open up something, Dallas, we take the cost every day, and we have not started sending out one single garments from there. Start will be October.

Toppoint decreased sales for the first time in many years during the period when they had all the moving and everything. I think we can be there.

We also have now launching Tenson in US. It will not be any big effect this fall, but hopefully next fall.

We also have new products and lines we will launch in January on Corporate. Craft is coming with indoor shoes, which we think is actually in one way an easier market than expensive running shoes.

We have a lot also in pipeline there. We have taking a lot of costs in the P&L that we have no income at all on yet.

That's how we have done in many, many, many, many years.

Did I understand you correctly that that will continue until the third quarter as of next year?

Some of them will, of course, always continue. We need to develop new products all the time.

It's just that we have done it more than normal the last two years with both movement and all those things. We can never stop that, because then we will probably have a negative growth three years later.

Some of the costs, for example, automations of warehouses, a lot of warehouses is done. Then it's another story if we, for example, make an acquisition and say that we need to automate that warehouse.

We are a bit keen on the coming two years, maybe, establish a warehouse in Germany that are automated for Cotton Classic. Most of them, can it be, Anna, 75%, 80% of our warehouses is now done where we actually need automation.

It's much less investments in future in that perspective than it has been the last years.

You're happy if you're able to defend the EBIT margin from this level until next year?

I think we can start and really see an improvement again. Again, excluding acquisitions, we will see an improvement from second half next year in operating margin as well.

If we can hold it until then through those investments period, I think it's very good, because if you can look at the underlying profitability, it's really nice.

Perfect. Thanks.

That's very clear. Just curious, we have seen several other retail names reporting Q2 numbers describing the weak German market: RevolutionRace, Fenix Outdoor, H&M, and also I think Klarna also mentioned the weak consumer sentiment.

You don't experience that or what do you feel?

We do, but not so bad as we write in the report. Germany, I think as a country, is under a lot of pressure, and the consumers there are in one perspective weak.

I can take one example: we had the former CEO in Intersport with us on a trip to, I met them in Germany. Me and Göran was down to Poland afterwards.

There you have a thing that I was a little bit surprised of. You can see how fast things are changing, because the German Intersport dealers on the border to Poland just a few years ago had the problem that consumers in Germany was buying in Poland instead because it was cheaper.

Now the shops in the border in Germany is going very well because it's Polish people coming over and buy in Germany. It's really fast changes.

I think with everything with car industry, and so on, in Germany, it will be a tough market. We should also remember it's a market that everybody wants to be because it's so big, the competition there are much, I would say, much tougher than in many other countries.

Perfect. Finally a question: you mentioned Craft and is it fair to assume that both the teamwear, running business doing well, but also the retail business within Craft?

Retail business in Craft has not done well for some years. It's not like we are losing shares to other, but as the sport retail has been terrible in several countries the last, I think it's three years.

It's still not doing well in this quarter, the retail business? No.

Again, before you see it in our figures, just everybody knows that if, for example, Q2 comes out strong for the retailer, they will increase the buying, the pre-orders they place to us in Q3, which we will deliver Q1 and Q2 the year after. You always have this lead time.

Before we really would see a positive effect in general from better retail sales, it will take 6 to 9 months. Then, of course, sometimes we can have a small effect that they need to buy in season if they are doing very, very well, but so good is it not yet.

I guess the cold weather in Q1 and also sport index that was quite good in Q2 as well, the inventory levels should be quite good.

Lower than before is what we expect, and we expect higher pre-orders. You never know.

Now in one way, I hope that they don't place too much for the winter, I would say, is most sensitive, because in the past, it has been many, many times that they do a good winter, then they think the next winter will be even better, and then they place too big orders. Then that winter is not so good, and then you have a bad effect the year after, yeah.

Yeah.

Thank you.

Hi, Alice Beer from ABG here. Just a few questions.

First on Cotton Classics: what's the gross margin like for Q2 compared to last year for it? How's that earnings development going inside of Cotton Classics?

I don't have, actually.

I have. We don't release that.

Okay.

On that, but it's improved a little bit. Yeah.

What we actually measure all the time is how many percentages of Cotton Classics' total sales is turning into New Wave brands?

New brands.

So.

I was just about to ask that. Has that increased in the pace that you expected or how much would you say that's now?

I would say at least in the same as we had expected, maybe even faster especially on some brands. That's also product groups that don't have any competition with the external brand.

For example, Craft is doing very good in Cotton Classic, but they didn't have any sportswear before, and the competitors don't have any sportswear either. The teamwear, for example, is doing very, very good in Cotton Classic.

Great. Then a more general question: there are a lot of moving parts affecting both sales and EBIT, and some things you can control, some things you can't.

Short-term, looking at maybe H2, what are your priorities for increasing or stabilizing margins or increasing organic growth out of the things you actually can control?

I think goal number one to do that is to keep the gross margin on a high level, because you can calculate yourself if we would have discounted more and be down on 46%, 47%, it wouldn't have been looking so good. We will really do everything we can to keep the gross margins up.

Then I don't think we can do so much more than we already are doing to increase the organic growth, actually. Of course, it will help with the launches we are doing in US and Tenson, and so on, but again, it takes 6 to 12 months at least before you see any effect in it.

Hopefully also we have done a lot this first six months that hopefully will pay off better last half of the year.

Perfect. That was it for me.

Nicklas Skogman, Nordea. Did you raise prices in the US to offset the impact from tariffs and markedly?

Do you then expect...

It's so much depending in total, I don't have any good picture, because it depends so much on what products that get hit. If the tariff hit a one-color T-shirt, it's extremely difficult to take a price increase on that, because the competition is extremely, extremely hard.

If it's hitting a Craft jacket, the consumers really don't know if the price should be $90 or $99. How that has spread out in average, I can't answer.

All right. You don't expect sort of prices going down in the US market then?

No.

No.

Okay. Then going back to the Corporate segment: so if you strip out trading, it was -3.8% organic growth, right?

Yes. Yeah.

No, what are you saying, Niklas? It was +3.8%, not minus.

Trading is down.

Yeah.

Yeah. If you strip out the trading impact...

Organic growth is, as I politely, excluding trading.

Okay. All right.

Then I miscalculated that one.

Or we.

I want a correction if you're on. In the first half, underlying cost increases are around 12% for external and personal costs, stripping out acquisitions and FX.

Do you expect that level also in second half, external and personal?

In the first half the year that will reduce H2, because in 2025, we had very little costs in external expenses referring to the ERP. As from Q3 in 2025, we had started taking costs for the ERP, and so when we compare now in Q3 2026 to Q3 2025, it would be more comparable.

Okay. That's it for me.

Stefan Stjernholm, Handelsbanken. A question on the Gifts & Home Furnishing segment: you said long-term you could reach 10% margin.

I hope.

Yeah. Apart from recovered market, what is needed?

Is it time for another structure measures or...

Probably also some more cut downs in our own production, which we are working with.

There will be more outsourced?

Yeah. If we really to strengthen the gross margin, it need to be that.

At the same time, it's no plans to close production, because it still means a lot in the total. We have two big production capacity today that we gain too low margins on.

It's also certain product difference in different product groups. If you look at art glass, we have fantastic gross margin.

If you look at a hand-blown wine glass made in Sweden, it's very bad. Excluding, actually, the new line that Björn Frantzén is behind.

It's there you can hold a pretty good margin even if it's produced in Sweden.

Karl Andreas at SEB again. Some confusion maybe from my side on the temporary costs that you partly will normalize next year.

If you look at the last 12 months and look 12 months forward, how will that figure change in absolute terms? Thank you.

I don't think it will change so much the coming 12 months. I think we calculate and I wrote that it will starts to go down the second half of the next year, if I remember correctly from my head.

The

ERP, and I would also like to mention for Dallas now, we have third-party warehouses that we keep having until we have moved the stock completely into Dallas and some other additional costs.

It's also depends a little bit how you mean, because according to sales and turnover, it will hopefully be down, because again to repeat Dallas, we spend a lot of money there, both in investments and cost, with not one single extra income in sales. If you look at, yeah, in percentage of sales, it will hopefully start going down earlier than second half next year.

Right. Meaning that your organic growth and gross margin will be the drivers of your operating margin in next year's quarters.

Thank you.

Yes. We got some questions from the web.

First: the Kosta köpmanshus, which New Wave Group owns with Lessebo municipality, has been valued at a potential sale. Are you interested in increasing your ownership stake in the property?

No.

Thank you. Yes.

Computer software in your intangible fixed assets continued to increase in 2025. Should we interpret your statement about the transition to cloud computing as that this figure in the balance sheet should start declining in 2026 and onwards?

That tended to Anna or Göran.

I can repeat: computer software in your intangible fixed assets continued to increase in 2025. Should we interpret your statement about the transition to cloud computing as that this figure in the balance sheet should start declining in 2026 and onwards?

The thing about the cloud solution is that we don't get this as an intangible asset. It is the small part that is put in the balance sheet is put there as a prepayment and dissolved over the license period.

The rest is going directly into the P&L as expense day one, even though we consider this as an investment. It's something that we do that we will have use of for 10 at least 10 years.

The cost is upfront, even though we're not even using the system yet.

The answer is yes, on the question. Maybe you will not see any big effect 2026, I can't say, but the result again when you take a lot of ERP systems as costs instead of putting into balance sheets is that we will have in one perspective lower depreciations in future than we would have with the old bookkeeping system.

Yes, we won't even get in a depreciation. All will be in the external expenses instead, it's a shift in that perspective as well between the lines.

Yes. Perfect.

That was all the questions.

Okay. Any more questions around the table?

Good. Thank you very, very much.

Thank you.