Kid stock closed at NOK129.60 after a flat month and only a modest 7 day gain, even as the latest earnings put margin strength back in focus. The headline this quarter is simple: stronger gross profitability and operating leverage returned, helped by a 63.2% gross margin and double digit EBITDA growth, while like for like sales and online revenues pulled their weight.
Short term traders may see a fairly quiet price chart. Long term investors will likely pay more attention to how this mix of solid sales growth and firmer margins compares with a P/E of 20.3x and a debt load that still matters.
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Q2 2026 Earnings Summary
- Revenue, Q2 2026 vs. Q2 2025: NOK918.987m vs. NOK856.371m (up about 7.3%)
- Net Income, Q2 2026 vs. Q2 2025: NOK36.638m vs. a loss of NOK2.72m (returned to profit from a loss)
- Basic EPS, Q2 2026 vs. Q2 2025: NOK0.90 vs. a loss of NOK0.07 per share (returned to earnings from a loss)
- Same Store Sales Growth, Q2 2026 vs. Q2 2025: 6.1% vs. 4.6% (indicating faster like-for-like growth)
Prefer clean charts instead of another wall of earnings tables and footnotes? Get a full visual read on Kid, including how its P/E and valuation compare, in the interactive company report for Kid.
Kid earnings back the margin-upgrade story
Bulls argue that Kid can turn logistics and systems investments into higher quality growth and fatter margins. Q2 goes a fair way to backing that up. Revenue grew in the mid single digits, but like for like sales including online landed at 8.3%, which shows existing stores and digital channels are pulling more than their weight. Gross margin moved up to 63.2% and EBITDA expanded roughly 15.2%, which points to real operating leverage rather than just cost cutting. Online sales rose about 43% and now represent 15.9% of sales, or 20.4% including Click & Collect. That supports the idea that omnichannel can scale without crushing profitability. Management also reported a 25% uplift in warehouse labour productivity and confirmed the POS system rollout is complete, both clear milestones for the margin upgrade narrative.
Bear worries on debt, costs and execution
The bear story on Kid centers on execution risk in logistics, underused warehouse capacity and rising leverage. Q2 does not close these files, but it narrows some of them. Warehouse operations are now described as stable, product availability is high and labour productivity is up 25%, which lowers the risk of repeated disruption. At the same time, net interest bearing debt has increased and gearing of 2.06 times, excluding IFRS 16 lease effects, keeps leverage in focus. Operating expenses rose 5.4% with higher wages, IT and last mile distribution costs, even if the cost to sales ratio improved. Freight is another open risk. Management still buys on the spot market and flags higher freight rates as a potential drag on margins. Early Hemtex Germany losses are modest and in line with plan, but they remind you that expansion projects can consume cash before they add profits.
Compare Kid's internal margin gains and online growth with what the street is pricing in today. See the consensus price target analysis for Kid to check how current analyst targets stack up against the latest earnings story.Take Control Of Your Next Move
If Kid's mix of firm gross margins and like for like growth has your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a more attractive entry point. Once you own Kid or other holdings, use the Portfolio Command Center to cut through noise and focus on the key business and valuation updates that matter. For long term context and fresh angles, lean on the Community to see what other investors are watching and why. By spotting potential catalysts and risks early, you give yourself a better chance of staying ahead of the market.
Curious About Alternatives Worth Exploring
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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