My comments on X (Twitter) regarding the report 
https://x.com/StockBrain247/status/1884865424593916349
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I am currently considering returning as an owner of the company. The price would be good if growth continues and profitability holds.
However, I am concerned about Germany’s significant weight in the business. Germany indeed still has room to grow if things progress well. At the same time, the probability of growth stopping or turning negative is also, in my opinion, reasonably high. Revolution Race still has a very short history in Germany and has seen very strong growth in recent years. In the apparel world, the direction can change quickly for small players without clear competitive advantages. Perhaps in Germany, they are approaching a milestone where RVRC is becoming a somewhat known player. The risk is mitigated by the fact that growth has occurred in a very difficult market environment, but it is still a clear risk in my opinion. This happened, for example, in Finland, at least in the short term, where the market share was admittedly larger than in Germany.
Another thing that holds me back is the significantly slowed growth in the Rest of World (RoW). This indicates that the company would have little competitive advantage in new markets. Will new growth markets still be found, and will the marketing machine still work as effectively? There is certainly more competition now than when the company started.
What are your thoughts on these points, @Arimatti_Alhanko
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Good thoughts and questions.
GERMANY
As you mentioned, Germany has a very large weight in the business. Almost half. And if one looked at the graph below before the Q2 25 report, surely many wondered if growth would end here. I, for one, was surprised by such a rapid slowdown in growth. The management, of course, spoke about market challenges in the Q1 call and discussed the same things with me at the end of last year.
Q2 growth, on the other hand, clearly accelerated. The market was still difficult. It would be interesting to know how much of the growth was simply due to the strong sales growth of the Alpine collection. Didn’t the management mention even 300% growth in today’s call? On the other hand, they might have mentioned 3x at one point, so figure that out The Alpine collection is expected to bring in about SEK 100m in revenue this year, and naturally, most of this was attributed to the second quarter. Germany grew by SEK 38m in absolute terms. Could it be that most of the growth came solely from the Alpine collection? Will growth slow down again in Q3 as the significance of the Alpine collection decreases? For example, in the UK, its significance is presumably negligible.
REST OF THE WORLD
Yep, growth was still very sluggish. I believe that management will in the future direct most of its growth investments to the UK. The British market is currently already the largest part of this segment, and the British outdoor apparel market is roughly 75-80% the size of the German market. On the other hand, if the UK grew faster than the group’s overall growth, other markets couldn’t have performed very well. It must also be remembered that management very strictly follows the operating profit margin. Growth investments are limited if the margin is not at the target level, and vice versa if the margin is above the target level. This quarter, management surely wanted to show that the Q1 25 margin was an outlier and wanted to return to profitable growth. The growth of this segment could be much faster if management decided to invest more in marketing. However, management is very positive when it comes to the UK. If they succeed here, it could become a very important pillar alongside Germany.
The market has been very challenging. And despite this, RVRC has performed excellently. If the market provides any tailwind, the company should at least have the ingredients to achieve double-digit growth at the group level for a longer period. If the British market slows down and growth relies solely on Germany. Well, the case isn’t nearly as interesting.
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The online store is getting a physical store. Revolutionrace is opening a store in the Stockholm Outlet Village. Revolutionrace öppnar sin första butik: “Testar och ser hur det känns” - Breakit
The CEO estimates the store’s sales to be less than one percent of total turnover, but surely the fitting room will also bring customers to the online store.
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Q3 2025 report out. Weak development in both DACH and Rest of World segments.
https://x.com/StockBrain247/status/1919635643073810794
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Indeed, growth is sluggish everywhere now.
It remains to be seen how the first physical store in Stockholm’s outlet world will start to perform. It has been open for about a month now. Presumably, they will test how things work there and possibly reduce inventory levels by selling them in the outlet. At the same time, of course, the brand gains visibility among brick-and-mortar shoppers.
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The physical store has apparently worked very well, as a new store will open in the autumn on Kungsgatan in central Stockholm.
“We are excited to establish ourselves on one of Stockholm’s most central shopping streets. We want to get closer to our customers, and the new store is a step in the company’s strategy to complement e-commerce with strong customer experiences in selected locations,” says Paul Fischbein, CEO of RevolutionRace.
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Right or wrong, I have personally considered Halti, owned by Ingman Group, to be RevolutionRace’s Finnish counterpart. That company’s last year looks quite grim; revenue is down 25% and the result also turned to a loss for the first time in a long time.
RR’s online sales-based concept clearly works better than the old brick-and-mortar store sales-based model.
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Agreed. I myself am surprised that more brick-and-mortar stores are opening now. Indeed, they have their own advertising and experiential value for consumers, and if the idea is just that such a thing will come to a few larger locations and not actually dozens of stores, then I understand the idea.
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The report is out.
Financial development & significant events during the fourth quarter
• Sales growth in local currencies amounted to 4 percent.
• Net sales for the period amounted to SEK 405 (407) million.
• Gross profit amounted to SEK 281 (293) million, corresponding to a gross margin of 69.4 (71.9) percent.
• EBIT and adjusted EBIT amounted to SEK 63 (74) million.
• EBIT margin and adjusted EBIT margin amounted to 15.5 (18.3) percent.
• Earnings per share before dilution amounted to SEK 0.46 (0.54) and after dilution to SEK 0.46 (0.53).
Financial development & significant events during the full year
• Sales growth in local currencies amounted to 6 percent.
• Net sales for the period amounted to SEK 1,925 (1,840) million.
• Gross profit amounted to SEK 1,344 (1,312) million, corresponding to a gross margin of 69.8 (71.3) percent.
• EBIT amounted to SEK 357 (386) million.
• EBIT margin amounted to 18.6 (20.9) percent.
• Adjusted EBIT amounted to SEK 383 (389) million.
• Adjusted EBIT margin amounted to 19.9 (21.1) percent.
• Earnings per share before dilution amounted to SEK 2.55 (2.73) and after dilution to SEK 2.55 (2.72).
• The Board of Directors proposes a dividend of 1.35 (1.20) SEK per share.
I personally expected a rather soft Q4, knowing that consumers in the Nordics are not celebrating much at the moment. Apparently the same problem also in German-speaking countries. The actual figures in the report are still perhaps a disappointment, but not, in my opinion, an insane catastrophe. The dividend is rising as expected. #dividendparty
Also, the following from the CEO’s comment:
At the beginning of the new financial year, and quarter to
date, we note a sales increase in local currencies at around
ten percent compared with the same period last year.
^That’s a bit reassuring.
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Ravolutionin ensimmäinen kvartaali meni minun mielestäni yllättävänkin positiivisesti.
Financial development & significant events during the first quarter (1 Jul – 30 Sep)
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Sales growth in local currencies amounted to 15 percent.
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Net sales for the period increased by 12 percent and amounted to SEK 392 (350) million.
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Gross profit amounted to SEK 273 (245) million, corresponding to a gross margin of 69.6 (70.0) percent.
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EBIT and adjusted EBIT amounted to SEK 75 (57) million, corresponding to an increase of 31 percent.
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EBIT margin and adjusted EBIT margin amounted to 19.0 (16.3) percent.
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Earnings per share before and after dilution amounted to SEK 0.53 (0.40)
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@artuzo and I are not the only ones; the market also seems pleased with RVRC’s good sales in the past quarter. I like RevolutionRace’s earnings audiocasts. The company openly discusses the quarter’s events. The good quarter was partly influenced by a weak comparison period last year due to poor market sentiment and a late autumn. However, market shares have still been gained, even though full market and competitor data is not yet available. I was very pleased that after a few weak periods, the DACH region again achieved a solid 14% growth. US tariffs, in particular, caused US sales to shrink significantly. The US share of total sales is about 3%. The growth of the Rest of the World segment remained at about 2%, and without the US impact, it would have been 5-6%.
Revolution launched a new ultra-series for demanding consumers for winter sports. The price category is clearly higher than the company’s previous products. ultra-series. The company stated that they are eagerly awaiting how the products will be received. They have been satisfied with the opening of the brand store in Stockholm and plan to open stores outside Sweden as well.
The current year’s main quarter has also started with growth, but the most interesting times are yet to come when Black Friday and Christmas seasons begin. Let’s hope for suitable winter weather for the season. Growth and one of the industry’s best profitability rates provide a good foundation for the future.
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RevolutionRace is performing excellently. The pre-Christmas and Black Friday quarter had poor outdoor weather, but despite that, RR achieved record results and sales. Steady growth was seen across all reported regions, even though currency exchange rates were not favorable. The outdoor clothing market has generally been under pressure, but Revolution has managed to gain more market share..
To the delight of Finns as well, they are opening a new store in Haparanda next to IKEA and Systembolaget. New product launches are also expected.
Since the beginning of the year, the weather has favored winter sports and growth has continued further.
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The previous quarter went excellently for RevolutionRace, even though outdoor weather didn’t favor that period in practically any of RR’s sales regions. CEO Fischbein mentioned that the company loves freezing temperatures because they have a positive impact on demand. I would also think that the cold increases the average order value as customers choose padded trousers and winter jackets instead of fleeces. The most important sales month for this period is the current March, and although the freezing weather loved by the company has eased—and Central Europe in particular has seen very spring-like and even summer-like temperatures—the outdoor weather has been quite favorable this month as well. Northern Europe’s long cold spell in January-February and the good skiing conditions in Central Europe seem to have influenced interest in RevolutionRace. I wasn’t able to fetch website visitor numbers from Similarweb, but I asked Copilot to compare Google search volumes to a year ago, and these figures give plenty of reason for optimism regarding this quarter’s sales.
Recruitment for the Haparanda store is underway, and the store is set to open during the spring. Hopefully, many travelers’ ski trips to Lapland will pass through the store in the future.
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