Fourlis Holdings H1 2026 Revenue Hits EUR284 Million Despite EBIT Loss

Fourlis Holdings SA reported first-half 2026 revenue of EUR284 million, a 7.6% year-on-year increase driven by like-for-like sales growth of 3% and network expansion. While top-line figures improved, the group recorded an EBIT loss of EUR1.6 million, attributed to seasonality, inflationary costs on personnel and energy, and expenses related to network rationalization. According to GN markets/earnings (en-US), these results reflect a period of transition where investment in growth and restructuring temporarily weighed on operating profitability.

The sporting goods segment emerged as the primary growth engine, with revenue rising 14.2% to EUR109.5 million. This expansion was fueled by the opening of seven new Foot Locker stores and strong performance in other markets, although Romania continued to present challenges. Conversely, the home furnishing division saw revenue increase 3.7% to EUR172.9 million, but its EBIT declined to EUR4 million from EUR8.3 million in the same period last year, citing market stagnation and pressure on basket size.

Transformation Costs Impact Operating Profit

The negative EBIT result was significantly influenced by one-off network rationalization costs totaling EUR1.6 million in the first half, primarily incurred in Romania. The company plans to recognize approximately EUR10.7 million in transformation and reorganization costs across the full year 2026, with EUR9.1 million expected in the second half. These expenditures are part of a broader strategy to streamline operations, including the closure of two Intersport stores in Romania and the relocation of another, as well as the conversion of the Rhodes IKEA store to a new generation format.

Management stated that these investments are on track to generate approximately EUR9.1 million in annual recurring benefits starting in 2027. To date, EUR2.9 million of these benefits have been secured, including a subscription agreement with DrP Group that locks in EUR2.2 million in annual savings from 2027. The company also initiated a share buyback program for up to 5% of its capital and paid a dividend of EUR0.15 per share in July, signaling confidence in long-term value creation despite short-term margin pressures.

Asset Sale Reduces Net Debt

Fourlis Holdings completed the sale of its indirect 50% participation in the Sofia South Ring Mall for EUR49.3 million. The majority of these proceeds will be used to reduce net debt, while the transaction is expected to generate a one-off net gain of EUR9.3 million in full-year 2026 pre-tax profit. This capital release supports the group’s balance sheet strengthening efforts amid ongoing operational investments in digital transformation and the new Inter IKEA distribution center, where EUR12 million in capital expenditure was directed in the first half.

Full Year Guidance Maintained

Looking ahead, the company maintains its full-year 2026 guidance, projecting group sales of approximately EUR645 million and a gross profit margin around 46.5%. The EBIT guidance stands at EUR15 million to EUR17 million, inclusive of EUR10.5 million in non-recurring transformation and restructuring costs. Post-first-half trading data through September 5 indicates group sales are up approximately 6% year-to-date, with sporting goods growing around 12% and home furnishing up roughly 2%, suggesting momentum continues despite the challenging macroeconomic environment in certain regions.