Comps dictate Q2 performance

Research evidence excerpt

Comps dictate Q2 performance

Equity Research - 25 June 2026 08:21 CEST

Reason: Preview of resultsEmbellence Group

Comps dictate Q2 performance Commissioned research

• We forecast net sales of SEK 191m in Q2'26e Not rated

• DTC could weigh on Q2 EBITA, -7% y-o-y at SEK 24m Retail

• We reiterate our SEK 36-43 fair value range

Estimate changes (%)

We forecast EBITA -6% y-o-y in Q2 on elevated DTC efforts 2026e 2027e 2028e

We expect sequentially tougher comps to lead to a deceleration for Sales -0.3 -0.2 -0.2

Embellence Group. Compared to 3.5% organic growth in Q1, we expect EBIT -1.0 -0.5 0.2

deceleration to flat growth in Q2 for net sales of SEK 191m. By segment, EPS -1.1 -0.6 0.2

we expect the soft spell in Cole & Son to continue from Q1, following Source: ABG Sundal Collier

changes to the distributíon setup, and we forecast -6% organic growth for

EMBELL-SE/EMBELL SSthis segment. We also forecast a clear organic decline, -19%, for Artscape,

versus the same quarter last year in which it launched a product line with Share price (SEK) 24/6/2026 34.00

a large customer. On the other hand, we expect Pappelina to continue Fair value range 36.0-43.0

to perform well after the DTC platform update (+20% org. growth) and

its External Manufacturing segment to remain at the net sales level it

MCap (SEKm) 800reached in Q1, suggesting 16% growth. We expect stable gross margins

to continue from Q1, and a slightly lower absolute opex level as Q1 MCap (EURm) 72

contained more costs for trade fairs than is typical in Q2. All in all, we No. of shares (m) 23.5

forecast adj. EBITA of SEK 24m, -7% y-o-y, as the group ramps up its DTC Free float (%) 46.4

efforts. Av. daily volume (k) 25

Shift to DTC weighs on '26e EBITA growth Next event H1 report 21 July 2026