Fenix Outdoor International AG

Interim / Quarterly Report • Jul 22, 2025

FENIX OUTDOOR INTERNATIONAL AG

Interim condensed consolidated financial statements for the period ended 30 June 2025

Second quarter 2025-04-01 – 2025-06-30

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Period 2025-01-01 – 2025-06-30

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Holding of own shares

Financial information

Contact person

COMMENTS BY THE EXECUTIVE CHAIRMAN

Another struggling quarter.

The second quarter did not come in as expected and was full of challenges. The specialist outdoor retail market is still facing some challenges. The weather made the quarter volatile from a sales perspective, furthermore price pressure from web dealers offering discounts from day one on new products.

When talking to dealers, especially in Europe and analyzing the sales of Frilufts both support the hypothesis that Brick-and-Mortar shops performed better compared to the web versus last year. The warm weather was also supporting that dealers with a broader sports and lifestyle assortment performed better. In terms of our operation this had the consequence that sales were negatively impacted in several ways, slightly lower gross margin in the Frilufts, and lower direct orders in the Brands and Global sales segments. Global sales and Brands where also hit because Fjällräven, due to the unpredictability in the market, bought less goods for reorders, which created a lack of goods for delivering direct orders. This means that the market has changed. It seems that dealers are depending more on reorders than before due to the markets unpredictability and we must change accordingly and thereby slightly increase the inventory risk. We also had lower inventory of old goods this year, which meant we were not selling out through many of our channels compared to last year.

The US market showed a decrease in sales, but as in Europe mostly in the wholesale segment, whereas the lower direct-to-consumer sales was up on like for like basis, especially in some key areas. The bottom-line in North America line did improve somewhat due to the savings we implemented last year. The weaker USD also affected our sales presented in EUR.

Net sales for the quarter ended at 144.9 MEUR vs last year 149.6 MEUR, a decrease of 3.1% driven by the factors as explained earlier. The operating result was -7.2 MEUR vs last year -6.5 MEUR. It was down primarily due to two factors: Devold was showing a seasonal loss not in the comparable numbers last year. They were however better than last year. The sales were also lower for Brand and Global sales in general.

Brands

The increase in external sales was related to the transfer of Fjällräven wholesale operations in USA and Canada from Global sales to Brands during last quarter, but also from the acquisition of Devold. The lower internal sales negatively affected the gross and operating profit. The strong sales to Frilufts in Q1, sold by Frilufts in Q2, resulted in a positive release of internal profit in stock accounted in common. The total lower sales of the Brands segment were also driven by the weaker US Dollar. The direct-to-consumer business showed a decrease especially on the web, however last year sales on the web included a boost due to clearance of goods which was not needed this year as our inventory is more accurate.

Global Sales

The European part of Global Sales showed decreased sales of 6.0% and was driven by the reorder situation. Asia was further hit by slowdowns in South Korea and Taiwan, both countries decreased in local currency as well as Euro. On the positive side the wholesale business to the rest of Asia was up as was our Chinese operation which showed growth both in sales and in profits in local currency but due to the RNBs connection to the USD and accounting rules on JVs it shows up as a loss in our accounting.

Frilufts

Sales in the Frilufts operation showed an increase of 1.5%, from 82.1 MEUR. This was driven by increases predominantly in Norway, Finland and Sweden. These markets where less effected by the weather, but the market was volatile. In terms of result, this meant a positability mainly in Germany driven by the lower costs. The Norwegian business is showing reasonable improvement but still has a way to ഉറ.

Digital/Channel. Development from a Group perspective

Our brick-and-mortar sales decreased from 77.8 MEUR,-5.1%. Our digital sales decreased from 30.7 MEUR to 28.3 MEUR, -7.9%. If we consider the closure of six shops the data shows that brick and mortar performed even better in the quarter than the digital sales. The challenges are that the primary driver of digital traffic/sales is discount/red prices, which we use restrictively. On the good side our brands outperformed many of the external brands in Frilufts. We there there is a good chance that our brands are doing better than the market in general.

Going forward

In terms of our expectations for Q3, it looks good. There is a more than solid order book in Brands and Global sales this year. However, given what we just experienced during Q2 as well as last year, weather and the relative weak economy may jeopardize the situation. I therefore once again refrain from making any predictions.

There are also some challenges. We are facing an unpredictable situation in the US due to the trade and custom discussions. We are therefore still not able to finally set prices for summer 2026 and even though agreements are politically agreed upon for some of our supply markets, it is still not confirmed with instructions for the customs offices.

What are we doing? I have mentioned in earlier letters that we have been investing in a new warehouse operation in Ludwigslust, and we are almost finished and expect to see positive effects on the costs under Q3 and Q4. We are also launching a new ERP system for Brands and Global Sales during H2 2025, which will enable us to improve operational efficiency. Besides that, we are also expecting positive effects from facilitation of our part ownership in Viomoda for closer to home production during 2026. We are also implementing further savings and efficiency programs, and we have already seen improvements as we have started seeing effects in this quarter on a like for like basis.

MEUR	Apr-Jun 2025	Jan-Mar 2024	Jan-Jun 2025	Jan-Jun 2024	Jul/Jun 2024/2025	Jan Dec 2024
Net sales	144.9	149.6	302.6	313.5	674.8	685.6
EBITDA	6.6	7.2	24.6	34.4	85.5	95.3
Operating profit	-7.2	-6.5	-2.0	6.3	29.2	37.4
Profit margin, %	-4.9%	-4.4%	-0.7%	2.0%	4.3%	5.5%
Result before tax	-9.4	-7.4	-5.7	4.0	25.5	35.3
Net result for the period	-10.0	-7.5	-9.9	-0.6	5.3	14.6
Earnings per B-share, EUR *)	-0.72	-0.56	-0.70	-0.05	0.32	1.08
Solvency rate, % *)			53.5%	58.5%		60.2%

*) Earnings per share are calculated on outstanding shares. Solvency rate are calculated as Equity as a percent of total assets.

Net sales, MEUR

Operating profit, MEUR

THE OPERATION

Brands

	2025 (2024)	2025 (2025)
External sales	Q2 40.5 (35.0) +15.7%	Q1-Q2 97.4 (80.2) +21.5%
Operating profit	Q2 -5.1 (0.2)	Q1-Q2 9.0 (13.1)

The increase in external sales is related to the transfer of Fjällräven wholesale operations in North America from Global sales to Brands, but also from the acquisition of Devold. The lower internal sales negatively affected the gross and operating profit.

Frilufts

External sales	2025 (2024)	2025 (2024)
	Q2 83.5 (82.1) +1.6%	Q1-Q2 149.8 (153.2) -2.2%
Operating result	Q2 -1.9 (-3.6)	Q1-Q2 -11.5 (-10.9)

Sales was stable, but the gross margin was slightly lower vs last year. The improvement in operating result is mainly related to the lower costs.

Global sales

External sales	2025 (2024)	2025 (2024)
	Q2 20.8 (32.4) -1.3%	Q1-Q2 55.3 (80.0) -30.9%
Operating result	Q2 -0.5 (-1.3)	Q1-Q2 5.3 (6.6)

The main decrease of sales is related to that the Fjällräven North American wholesale operation was reported in Brands last year. The like for like sales in Europe and Asia is also on a lower level compared to last year. The Chinese market, the JV, was the strongest market, but the positive consolidated effect in operating profit (equity method) was limited by a weaker Chinese currency

Common, Liquidity and financial standing

	2025 (2024)	2025 (2024)
Operating profit	Q2 0.3 (-1.8)	Q1-Q2 -4.8 (-2.5)

The Group's financial position remains strong. Consolidated cash equivalents amounted to MEUR 56.0 (MEUR: 75.5) per the end of the Group's interest-bearing liabilities amounted to MEUR 87.5 (MEUR: 50.3). Lease liabilities amounted to MEUR 133.8). Consolidated equity attributable to shareholders was MEUR 383.7 (MEUR: 398.1), corresponding to a solvency rate of 53.5% (58.5%).

THE OPERATION

External sales and operating result per segment

Global sales

	3 months		6 months		12 months
CONSOLIDATED INCOME STATEMENT
MEUR
Total income
Operating expenses
Operating profit
Profit before tax
Net profit for the period

Consolidated Statement of	3 months	6 months	12 months
Comprehensive Income
MEUR
Net result for the period
Total other comprehensive income for the period
Total comprehensive income for the period

CONSOLIDATED STATEMENT OF
FINANCIAL POSITION, MEUR
Assets
Non-current assets
Total non-current assets
Current assets
Total current assets
Total assets
Equity and liabilities
Total equity
Liabilities
Total non-current liabilities
Total current liabilities
Total Liabilities
Total equity and liabilities

Consolidated statement of changes in equity

				Foreign
		Other	Cash flow	currency				Non-
	Share	contributed	hedge	translation	Treasury	Retained		controlling	Total
MEUR	capital	capital	reserve	reserve	shares *)	earnings	Total	interests	Equity
01-01-2024	12.4	39.8	-0.2	-12.6	-11.2	389.1	417.2	0.0	417.2
Net profit for the period						-0.6	-0.6	0.1	-0.6
Other comprehensive income for the period			0.7	-2.2			-1.5	0.0	-1.5
Total comprehensive income for the period	0.0	0.0	0.7	-2.2	0.0	-0.6	-2.1	0.1	-2.1
Transactions with non-controlling interests						0.1	0.1	-0.1	0.0
Dividends resolved at Annual General Meeting						-17.1	-17.1		-17.1
Transfer of cash flow hedge reserve to inventories			0.1				0.1		0.1
30-06-2024	12.4	39.8	0.5	-14.7	-11.2	371.4	398.2	0.0	398.1

				Foreign
		Other	Cash flow	currency				Non-
	Share	contributed	hedge	translation	Treasury	Retained		controlling	Total
MEUR	capital	capital	reserve	reserve	shares = )	earnings	Total	interests	Equity
01-01-2025	12.4	39.8	-1.0	-10.1	-11.2	387.2	413.2	0.0	413.2
Net profit for the period						-9.4	-9.4	-0.5	-9.9
Other comprehensive income for the period			-3.4	-3.0			-6.3	-0.1	-6.4
Total comprehensive income for the period	0.0	0.0	-3.4	-3.0	0.0	-9.4	-15.7	-0.5	-16.2
Transactions with non-controlling interests						-0.5	-0.5	0.5	0.0
Share based payments ** )						0.2	0.2		0.2
Own shares as payment, purchase of subsidiary *** )					9.6	-4.1	5.5		5.5
Dividends resolved at Annual General Meeting						-18.6	-18.6		-18.6
Transfer of cash flow hedge reserve to inventories			-0.3				-0.3		-0.3
30-06-2025	12.4	39.8	-4.6	-13.0	-1.6	354.8	383.7	0.0	383.7

Consolidated statement of cash flows
MEUR
OPERATING ACTIVITIES
Cash flow from operating activities before changes in working capital
Cash flow from operating activities
INVESTING ACTIVITIES
Cash flow from investing activities
FINANCING ACTIVITIES
Cash flow from financing activities

Notes to the financial report

Note 1 Accounting principles

Note 2 Right of use assets

30.06.2025, MEUR	Brands	Frilufts	Global sales	Common	Total	31.12.2024, MEUR	Brands	Frilufts	Global sales	Common	Total
Right-of use assets	24.2	95.1	1.5	3.3	124.1	Right-of-use assets	26.8	92.2	1.6	2.4	122.9
Lease liabilties	-26.1	-96.7	-1.6	-3.8	-128.3	Lease liabilities	-28.6	-94.3	-1.7	-3.6	-128.2

	Brands	Frilufts	Global sales	Common	Total		Brands	Frilufts	sales	Common	Total
Depreciation	-4.0	-11.6	-0.5	0.0	-16.0	Depreciation	-9.0	-24.1	-1,0	-1.4	-35.5
Interest cost	-0.4	-1.0	0.0	-0.1	-1.5	Interest cost	-0.8	-2.1	0,0	-0,1	-3.0

Note 3 Exchange rates

			Balance sheet closing rate
Apr-Jun 2025	Apr-Jun 2024	Jan-Dec 2024	2025-06-30	2024-06-30	2024-12-31
11.8380	11.4236	11.4498	11.1465	11.3595	11.4590
1.0048	0.9647	0.9532	0.9347	0.9634	0.9412
1.1728	1.0791	1.0803	1.1720	1.0705	1.0389
11.7812	11.8418	12.0123	11.9252	11.7911	12.1749
			Average rate

Note 4 Risks

Note 5 Hedge accounting

Market value, TEUR
FX Forwards

Note 6 Segment reporting – sales and operating result

Second quarter 2025-04-01 – 2025-06-30

		Brands	Frilufts		Global sales		Common and elimination		Group
	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
External Sales, MEUR
Internal Sales, MEUR
Sum Net Sales, MEUR
EBITDA, MEUR
Operating result, MEUR

	Brands		Frilufts		Global sales		Common		Total
External sales per market, MEUR	Apr-Jun 2025	Apr-Jun 2024	Apr-Jun 2025	Apr-Jun 2024	Apr-Jun 2025	Apr-Jun 2024	Apr-Jun 2025	Apr-Jun 2024	Apr-Jun 2025	Apr-Jun 2024
Switzerland
Sweden
Other Nordic countries
Germany
Benelux
Other Europe
Americas
Other World
Total

Period 2025-01-01 – 2025-06-30

	Common and
	Brands		Frilufts		Global sales		eliminering		Group
	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
External Net sales, MEUR
Internal Net sales, MEUR
Total Net Sales, MEUR
EBITDA, MEUR
Operating result, MEUR
Number of Stores
of which are franchise
Non-current assets
Cap. Expenditures

	Brands			Frilufts	Global sales		Common		Total
External sales per	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun
market, MEUR	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Switzerland
Sweden
Other Nordic countries
Germany
Benelux
Other Europe
Americas
Other World
Total

Note 7 Outstanding options from acquisitions

Note 8 Acquisitions

Note 9 Transactions with related parties

Note 10 Events after period closing

Alexander Koska	Martin Nordin	Susanne Nordin	Mats Olsson
Ulf Gustafsson	Rolf Schmid	Sebastian von Wallwitz

Calendarium