I am not making claims about Verkkis’s stock price being over- or undervalued. The comment only concerned the strong rise in the stock price due to that news:
Finland’s Amazon is going to Sweden, and here are Arttu’s comments on it. 
Verkkokauppa.com announced yesterday its intention to expand its business to Sweden. The expansion is part of the company’s strategy to grow international revenue. In our opinion, international expansion through partners is justified due to lower risk and high potential. However, success is not guaranteed, and achieving a significant level of results in Sweden will, in our view, take the company at least several years.
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If I interpreted the company’s statements correctly, both parties have had a common understanding that Verkkis’s entry onto the Amazon platform in Sweden is a good thing. This is because Amazon Sweden’s electronics selection is quite narrow, and local major players do not want to sell on the platform. Apparently, Amazon also has no desire to bring electronics into its selection with its own funding.
Why the company believes it can compete in the market:
- Finland’s current prices are very competitive in the Swedish market, meaning Verkkis would fight on price. Including commissions, the business would be profitable according to the company, as it ties up few resources and product margins would be better.
What I am most concerned about:
- Delivery speed is likely at the level of local operators or even slower, so a competitive advantage like in Finland cannot be achieved here.
The most important thing for an investor to understand is that, in my understanding, the cooperation does not bind Verkkis at all, so if the situation requires it, the company can return home with a milk train. I therefore see that the risks associated with this are very small because the business does not tie up resources (no one has been hired for this opening) and it is currently quite small (probably no large inventory to shut down).
The potential, on the other hand, is great if one believes that the company is competitive in the market, achieves a good reception, and in the future opens its own online store in the market. In Sweden, most electronics retailers (measured by market share) operate primarily with brick-and-mortar stores, so there might be room for a company operating primarily online. The risk, however, increases when opening one’s own platform, as this would likely involve opening an intermediate warehouse and hiring more staff for the market. More capital would be committed to marketing.
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We are not opening our own online store at this stage. So, entry will happen through Amazon. That verk.com is Verkkis’s ready domain, which can be used in the future, for example, for opening our own site in Sweden.
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Verkkis handles logistics itself with the help of partners (not Amazon’s FBA service).
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Doesn’t the Swedish consumer then know how to change the .se ending to a .de ending when typing the Amazon address into their browser? There goes the competitiveness of Finland’s current prices.
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Thanks for the clarification, I was busy yesterday and didn’t have time to go through the news in more detail.
Based on my own experience, I would say that Amazon’s strengths are largely related to Prime membership (Prime Day prices and free/fast deliveries). These cannot be achieved through Verkkis if deliveries happen via Finland. Amazon succeeds if prices are low, one invests in marketing, and you have skilled professionals to maintain the site so that visibility is guaranteed.
The fact that electronics have not been available in Sweden is not a major drawback today, as everything can be ordered through EU online stores, and Amazon.de is likely as fast with deliveries as the aforementioned concept. But of course, through this, the experiment is quite easy to do.
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Varis’s comments on Verkkokauppa’s inventory levels relative to turnover
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@Iikka has made a video about Verkkokauppa.
This video goes through Verkkokauppa.com as an investment. The company has experienced both speed and dangerous situations in both its stock and business operations.
However, an earnings turnaround has occurred, but is the stock attractive after a more than 50% price increase?
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Evli is taking a position in Verkkis. With 2.5 million shares, it is already the third largest owner. It seems all March block trades have gone there, and Evli Finland Small Cap has doubled its ownership this month.
Quite a nice sign also for us retail investors who are on board, as the fund’s and portfolio manager’s track record is at least good, if not excellent 
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Positive earnings warning from Gigantti’s parent company. Comparable growth has also been positive in the Nordics.
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@Arttu_Heikura has written a comprehensive report on Verkkis, and like other comprehensive ones, this one is also available for everyone to read without any paywalls.
The year 2025 will be an interim year for the company, as the threat of a trade war’s impact on the economy creates pressure on market turnaround and rising consumer confidence. In the medium term, however, the prerequisites for earnings growth are good in our view, driven by which the attractive return expectation of the share offers, in our opinion, a sufficient counterbalance to short-term uncertainties. We reiterate our “add” recommendation and a target price of 1.9 euros, due to a moderate valuation and an attractive risk/reward ratio.
Quoted from the report:
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Arttu and Tomppa chatted about Amazon in Finland.
The market tailwinds turned against Verkkokauppa.com after the corona pandemic. Although the situation is far from clear, the company has good prerequisites to return to earnings growth next year. However, the current year seems to be a transition year. Analyst Arttu Heikura discusses the market situation and the company’s expansion into the Swedish market.
Topics:
00:00 Introduction
00:31 Difficult years behind
02:45 Market recovery in sight
04:30 More efficient operations than competitors
09:52 Strategy and expansion into Sweden on the Amazon platform
13:59 Effects of tariffs
17:05 Forecasts predict a return to earnings growth in 2026
19:49 Despite uncertainties, valuation is attractive
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Trump to remove tariffs on smartphones, computers, and other electronics. This is reassuring for Verkkis. I had outlined the threats brought by a potential trade war in the recent comprehensive report on pages 33-34. However, this does not eliminate other indirect effects (global recession, general inflation), but it clearly reduces the risk that would affect the company’s own product range.
Official source: CSMS # 64724565 - UPDATED GUIDANCE – Reciprocal Tariff Exclusion for Specified Products; April 5, 2025 Effective Date.
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Here are Arttu’s pre-earnings comments as Verkkis publishes its Q1 results next Thursday.
We expect a significant improvement in the company’s results despite a slight decrease in revenue. We believe the company will reiterate its guidance, adapting to the still uncertain market environment. The consumer electronics market has shown slight signs of recovery, although uncertainty, low consumer confidence, and price-conscious consumers are likely to keep the competitive environment tight and reduce the probability of continued market growth in the coming months. From the earnings day, we expect comments on market outlook, the first steps and plans for internationalization in Sweden, and the effects of US customs policy on the industry.
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CEO Panu Porkka’s overview from this spring’s Annual General Meeting! 
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Results out, is the stock starting to look even cheap if the pace continues: Verkkokauppa.com Oyj osavuosikatsaus 1.1.–31.3.2025: Operatiivisen toiminnan tehostaminen johti merkittävään tulosparannukseen | Kauppalehti
January–March 2025 in brief
- Revenue increased by 2.4 percent to EUR 110.5 million (108.0)
- Gross profit was EUR 20.8 million (18.7), or 18.8% (17.3%) of revenue
- Operating profit (EBIT) was EUR 3.2 million (-0.4), or 2.9% (-0.4%) of revenue
- Comparable operating profit (comparable EBIT) was EUR 3.2 million (0.5), or 2.9% (0.5%) of revenue
- Profit for the period was EUR 2.0 million (-1.0)
- Earnings per share were EUR 0.04 (-0.02)
- Investments were EUR 0.3 million (0.3)
- Cash flow from operating activities was EUR -14.7 million (-13.0)
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A really strong result, especially compared to expectations. Traditionally, strong results have been achieved during H2 - and now, already after Q1, a lion’s share of the forecasted full-year result has been achieved. This is starting to look like the full-year adjusted EBIT target could be around 10 M - instead of the current approximately 5 M.
And so - will we see a really sharp rise today?
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This sentence caught my eye from that report:
“In addition, international trade grew significantly in the first
quarter of the year.”
It’s interesting to hear more about what this is all about. If this starts happening more often, it could turn out to be very interesting.
Also, the pure operating cash flow before changes in working capital is at a pretty staggering level (4.9M vs. FY24 7M).
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Here are Arttu’s comments on Verkkis.
Verkkokauppa.com’s Q1 result exceeded forecasts on all main lines. Revenue turned to growth for the first time in a long time. Profit, in turn, was boosted by efficiency measures taken at the end of 2024, volume growth, and an excellent gross margin %. The guidance expecting revenue and operating profit growth was reiterated, and in our opinion, the Q1 performance brought credibility to the guidance’s validity. Due to the clear forecast beat, our forecasts are subject to upward pressure. We anticipate the stock to open positively or outperform relative to the market open.
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