FOURLIS HOLDINGS S.A. (Bloomberg: FOYRK:GA - Reuters: FRLr.AT - ISIN: GRS096003009) announces the Consolidated Financial Results for the First Half of 2026.
According to the relevant announcement, the Fourlis Group maintained positive commercial momentum in the First Half of 2026, supported by the continued increase in market shares and the expansion of the network in its core retail activities.
Operating profitability was affected by seasonality, inflationary pressures in the main operating cost categories, the challenging market and business environment in Romania, as well as by strategic growth investments and selected network rationalization actions.
At the same time, the Group is accelerating the implementation of the transformation program and the structural actions aimed at simplifying the operating model, improving efficiency and strengthening future operating leverage.
Most of the related transformation and reorganization expenses are expected to be incurred in the Second Half of 2026, while significant recurring benefits are expected from 2027 onwards.
The sale of the Group's stake in Sofia South Ring Mall will further strengthen the Group's net debt position and will generate a net profit of €9.3 million, contributing positively to the Group's Profit Before Tax for the full year 2026.
A. Key Financial Figures for the First Half of 2026
- Sales: The Group's sales increased by 7.6% year-on-year, to €284.0 million, supported by positive like-for-like performance and network expansion.
- Gross Profit: Gross profit increased by 4.9% to €132.6 million, with the gross profit margin standing at 46.7%, reflecting the product mix, category dynamics, inventory rationalization and targeted promotional actions.
- Profitability: EBITDA amounted to €27.7 million, compared with €30.8 million in the First Half of 2025, while EBIT amounted to €(1.6) million, compared with €6.0 million in the First Half of 2025. Profitability was affected by seasonality, inflationary pressures on operating costs, the challenging market and business environment in Romania, the planned start-up and ramp-up costs associated with strategic growth investments, as well as non-recurring network rationalization expenses.
- Associates: The contribution of associates amounted to €12.8 million, supported by Trade Estates and SSRM.
- Capital allocation and returns to shareholders: Total capital expenditures for the First Half of 2026 amounted to €12 million, of which €4.4 million related to network expansion, €2.5 million was invested in digital transformation initiatives and €2.8 million in investments for the InterIKEA Distribution Center.
In July 2026, the Group paid a dividend of €0.15 per share for fiscal year 2025.
In addition, in July 2026, the Company initiated the implementation of the Share Buyback Program, which provides for the acquisition of up to 2,556,774 treasury shares of the Company, corresponding to 5% of its share capital.
B. Business and Strategic progress to date
Progress of transformation and creation of a unified retail platform
During the First Half of 2026, the Fourlis Group continued to advance the initial phase of its transformation program, aiming to create a simpler, more scalable and efficient regional retail platform. The Group is proceeding with the centralization of selected functions, the development of shared services, the implementation of new cross-functional processes and a unified systems and data roadmap across all business units and markets.
The program is moving into a more intensive implementation phase during the Second Half of 2026, which includes the implementation of the new organizational structure and the related centralization measures. These structural actions are designed to reduce complexity and improve productivity, with recurring efficiency benefits expected to become visible from 2027 onwards.
Profitability, transitional costs within 2026 and structural benefits
Profitability in the First Half of 2026 was affected by seasonality, inflationary pressures in the main operating cost categories, including personnel costs, energy, transportation and lease costs, as well as by the challenging market and business environment in Romania.
Profitability was also affected by the planned start-up and ramp-up costs associated with strategic growth investments, including the new InterIKEA Distribution Center and the ongoing expansion of Foot Locker.
Additionally, the results of the First Half of 2026 include approximately €1.6 million of non-recurring expenses, mainly related to the optimization of the Sporting Goods network in Romania. Most of the Group's transformation, reorganization and strategic action expenses planned for 2026 have not yet been recognized and are expected to be incurred during the Second Half of 2026.
These actions are expected to generate recurring annual benefits of more than €9 million from 2027 onwards, supporting a more flexible operating model, improved cost management and improved operating leverage.
Additional strategic actions to date
- Sofia South Ring Mall: As part of its strategic focus on core retail activities, the Group announced the sale of its indirect 50% stake in Sofia South Ring Mall, for a consideration of €49.35 million. Following the completion of the transaction, most of the remaining proceeds are expected to be directed toward reducing the Group's net debt. The transaction is also expected to generate a net profit of €9.3 million, contributing positively to the Group's Profit Before Tax for the full year 2026.
- H&B: The Group is at the stage of signing the definitive Subscription Agreement with the shareholders of DrP Group, within the framework of the strategic partnership to accelerate the development of Holland & Barrett in Greece through the pharmacy channel.
- InterIKEA Distribution Center: The development of the new international distribution center has been completed and the facility entered the start-up phase in July 2026, with activities ramping up gradually during the Second Half of 2026.
Estimates for 2026
Management confirms its estimates for 2026, based on current commercial conditions and market assumptions:
- Group sales of approximately €645 million, corresponding to an increase of approximately 8.6% year-on-year.
- Gross profit margin of approximately 46.5%.
- EBIT of €15-17 million, corresponding to an EBIT margin of approximately 2.3%-2.6%. EBIT includes the impact of non-recurring transformation and reorganization expenses of €10.7 million.
- Recurring annual benefits of approximately €9 million from 2027 onwards.
Management continues to implement cost control measures across the Group in order to mitigate inflationary pressures. The Romanian market remains the main pressure factor, as highlighted during the Annual General Meeting of June 2026, with an estimated impact of approximately €5 million for the full year. In this context, Management is accelerating structural actions aimed at improving productivity and strengthening operating leverage from 2027 onwards.
Performance from the beginning of the year to date
The Group's sales show an increase of approximately 6% from the beginning of 2026 through 05 September 2026, with sales in the Home Furnishings and Furniture segment increasing by approximately 2% and in the Sporting Goods segment by approximately 12%.
Management remains committed to disciplined execution, commercial discipline and cost control, while maintaining flexibility in an unstable macroeconomic and geopolitical environment.
C. Chief Executive Officer's Statement
Mr. Giannis Vasilakos, Chief Executive Officer of the Fourlis Group, stated:
«The first half of 2026 confirms the Group's positive commercial course, with sales increasing by 7.6%, thanks to the strengthening of market shares, resilient performance in most of our markets and the continued development of our network.
Profitability was affected by inflationary pressures and the particularly challenging environment in Romania. We are addressing these pressures with strict cost control and are accelerating actions for network rationalization, the centralization of functions and the development of the unified retail platform.
These actions burden 2026 with extraordinary costs, but are expected to generate recurring annual benefits of more than €9 million from 2027 onwards, creating a more efficient and flexible Group.
We confirm our estimates for 2026 and remain committed to the effective execution of our plan, cost control and maintaining the commercial momentum of our activities.
At the same time, the sale of our stake in Sofia South Ring Mall further strengthens our strategic focus and financial flexibility, as we continue to build the platform for improved scalability and long-term value creation.»
* See details in the Accompanying Material column.