Kid (1K) | Buy | Execution back on track

研报英文原文证据摘录

Kid (1K) | Buy | Execution back on track

Kid Buy | Target Price: NOK160.00

Q1

Kid’s Q1 report confirms a return to more normal operations after the warehouse-related

disruption in 2025. Warehouse capacity and throughput improved, deliveries to stores

normalised, and management stated that last year’s logistics issues did not materially affect

revenues in Q1. Processes are now stabilised, although further efficiency gains are expected

through 2026 and into 2027 as optimisation and system upgrades continue.

Commercial momentum remained solid, supported by seasonal execution, higher customer

traffic and online growth. Group revenues increased 9.1% YOY, with LFL growth of 6.1% in

constant currency. Management highlighted strong Easter, spring and summer assortments,

helped by earlier arrivals and a higher share of newness in stores. The lower basket size appears

mainly mix-driven, reflecting Easter-related sales of smaller items rather than weaker customer

momentum.

Online remains an important driver, with revenues up close to 25% YOY in constant currency and

reaching 14.1% of group sales, or 21.2% including click-and-collect. Management linked the

performance to both demand and improved execution, including website upgrades, better

product presentation and more inspirational content.

Progress on the old Lier warehouse also reduces uncertainty. Sublease agreements now cover

around 65% of capacity, with the new agreement effective from Q2. On the call, management

indicated that NOK12–13m of the previously communicated NOK20m 2026 cost impact is now

expected to be covered by subleasing, while the company continues to work on a longer-term

solution.

Store development remains a key growth lever. Kid completed seven store projects in Q1, opened