Pierce; Interim report January - June 2026

April – June 2026

• Net revenue increased by 3%, totalling SEK 537 (523) million. In local currencies there was growth of 2%.
• EBIT was SEK 32 (26) million, corresponding to an operating margin of 6.0% (4.9%). Adjusted EBIT was SEK 34 (32) million and the adjusted operating margin was 6.4% (6.2%).
• Cash flow for the period was SEK 40 (13) million and the cash position at the end of the period was SEK 319 (188) million.
• Earnings per share before dilution was 0.44 (0.29) and after dilution, SEK 0.44 (0.29).

January – June 2026

• Net revenue increased by 4%, totalling SEK 958 (925) million. In local currencies there was growth of 6%.
• EBIT was SEK 28 (11) million, corresponding to an operating margin of 2.9% (1.2%). Adjusted EBIT was SEK 36 (21) million and the adjusted operating margin was 3.8% (2.3%).
• Cash flow for the period was SEK 76 (‑108) million and the cash position at the end of the period was SEK 319 (188) million.
• Earnings per share before dilution was 0.36 (‑0.14) and after dilution, SEK 0.36 (‑0.14).

Significant events during the reporting period

Series C share issue
In April 2026, Pierce Group AB (publ) carried out a directed issue of 850,000 Series C shares to Nordic Issuing AB to ensure the delivery of performance shares to participants in the LTIP 2025/2028 performance-based share program.

Exercise of long-term incentive program 2023/2026
In June 2026, a total of 199,437 ordinary shares were transferred to participants in the long-term incentive program 2023/2026 (LTIP 2023/2026), in accordance with the resolution adopted by the 2023 Annual General Meeting. To facilitate the transfer, Pierce Group AB (publ) converted 199,437 Series C shares into an equal number of ordinary shares.
Following this conversion, the total number of shares is 82,199,100, comprising 79,573,537 ordinary shares and 2,625,563 Series C shares. The total number of votes amounts to 79,836,093.3.

Warehouse Management System implemented
In June 2026, Pierce Group AB (publ) reached a key strategic milestone with the implementation of a new warehouse management system (WMS) at its central warehouse, marking an important step in the Company’s transformation of its IT infrastructure. The new WMS establishes a scalable platform for future growth and is expected to enhance inventory accuracy and traceability while improving warehouse efficiency over time. The implementation itself progressed largely as planned, although the transition created temporary operational challenges. Fulfilment was paused during the migration, and lower warehouse productivity during the subsequent ramp-up resulted in a shipment backlog equivalent to approximately two days of sales, which carried over into the third quarter. With the new system now in place, the focus is on stabilising warehouse performance and progressively realising the benefits of the investment.


CEO comments
Our Adjusted EBIT for the second quarter edged higher, amounting to SEK 34 million for the quarter, compared with SEK 32 million in the corresponding quarter last year. Net revenue increased 3 percent to an all-time high of SEK 537 (523) million, or 2 percent in local currencies. This was achieved despite a challenging Warehouse Management System (WMS) transition. Profit after variable costs was SEK 118 (120) million, corresponding to 21.9 (22.8) percent of net revenue, reflecting a somewhat lower gross margin combined with higher outbound freight costs.
During the quarter, we implemented our new Warehouse Management System, a major milestone in our strategic development that will provide meaningfully improved warehouse operations once fully ramped up. Deploying a platform of this scale inevitably affects day-to-day operations, and it impacted both our top line and costs during the second quarter. We expect to return to normal productivity and costs at the end of the third quarter.
At the end of June, we finalized the rollout of our 13 new localized markets, meaning these markets now have local-language websites, local delivery options, and local payment methods. These new markets have gotten off to a very promising start. Our mountain bike and scooter/moped verticals also continued to develop well. While still relatively small, we see meaningful long-term potential in these new markets and adjacent verticals as we leverage our existing customer base, technology platform and infrastructure to broaden Pierce's addressable market.
Our previous e-commerce platform lacked the stability and scalability to support this kind of expansion, so having the new platform in place is an important milestone as it enables growth through expansion both geographically and into new categories.
Out of our 16 previously localized markets ("established markets"), we have migrated Belgium and Spain onto our new e-commerce platform. We have experienced a significant temporary sales decline in these markets after migrating them to the new platform, but we expect sales to recover and stabilize over the coming months. During the first months following platform migration, traffic and conversion typically decline as search engines re-index new URLs and page structures. This normally recovers gradually as search engines learn the new site structure.
During the third quarter, we will roll out several additional, smaller established markets onto the new platform. The pace of migrating our larger markets will then depend on how these initial migrations, including Belgium and Spain, develop, as we want to safeguard sales during the important November and December trading period. This is later than planned, we had originally expected to complete the rollout during the second quarter.
Transformation costs mainly relate to external consultants and temporary parallel license fees during the transition to our new cloud-based systems, and, as they cannot be capitalized, are expensed directly as incurred. During the quarter, transformation costs amounted to SEK 6 (8) million. We expect these costs to decrease gradually during the coming quarters as we stabilize the WMS and continue the rollout of our new e-commerce platform, somewhat later than we previously communicated. We continue to expect Pierce 2.0 to deliver a further annual EBIT improvement of approximately SEK 20–30 million, of which a portion has already been realized through reduced depreciation and amortization, with the remainder to follow as transformation costs are reduced.
With this, we are approaching the end of our transformation program, Pierce 2.0. Since the launch in the third quarter of 2023, we have reduced our white-collar workforce by approximately 40 percent, from 256 to 157 FTEs, while the last twelve months net revenue has grown by 17 percent to SEK 1,849 million, and net revenue per white-collar FTE has grown by 90 percent. Over the same period, the last twelve months Adjusted EBIT has improved from SEK -47 million to SEK 61 million.
Our financial position remains very strong. Cash at the end of the quarter amounted to approximately SEK 319 million, providing us with significant strategic flexibility.
The European motorcycle gear and equipment market remains highly fragmented, and scale advantages are significant. As one of the largest players, the only truly pan-European platform, and the only listed company in the sector, we are well positioned to lead a market consolidation. Our multi-category offering and high private label share create a strong foundation for synergies and value creation, and we see potential to take an active role as opportunities arise.