Good morning, everybody. Welcome to Q3 Presentation. My name is Tor-André. I am the CEO of Outlet Group. Together with me, I have CFO Christer Jacobsen. Please feel free to post questions during the presentation, and we will try to answer in the Q&A session. We are going to have a presentation in both English and Norwegian, so the Q&A session will be after the Norwegian presentation. First, I will talk about highlights from Q3. Outlet Group had a strong Q3. NOK 740 million in revenue is a growth of 16.4% compared to Q3 2025. The group delivers an adjusted EBIT margin of 20.3% in the quarter. We have two segments, Sport Outlet and Kids Outlet. Kids Outlet opened its first store in September 2025, so comparable number is not relevant this year. For Sport Outlet, we had a revenue growth of 9.5% this quarter. Like-for-like growth were 5.2%.
We had an EBIT of NOK 150 million with an EBIT margin of 21.5%. Kids Outlet had NOK 45 million in revenue, with an EBIT of NOK 1 million and an EBIT margin of 2.6%. Operational highlights. At the end of third quarter, we had 145 stores. If we look at Sport Outlet, we opened one new Sport Outlet store in Poland this quarter. We had two relocations in Norway, so we have a total of 122 stores, with three of them in Poland.
We increased our own brand share from 54.3% to 60.5%. We had growth across all product categories, and new categories also contributed to our growth. We launched dog supplies in end of June. This has been very well received in the market, so we think that this category will be important for us in the future. When it comes to Kids Outlet, we opened four new stores in Q3.
E nd of Q3, we had a total of 23 stores. We will open an additional seven stores in fourth quarter, so end of 2026, we will have 30 stores. We are still developing the concept and the operations. It is a new concept, but even though we had profitable store operations, so that is a validation of the concept. Logistics. In Q3, we have successfully tested centrally managed replenishment instead of store-managed . We have tested it for some categories. By the end of this year, we will implement it for all categories. This is done for all products that run through our central warehouse. Next year, we will also try to do it for all products from third-party suppliers. We believe this will have a strong positive effect on both sales and inventory across all stores. We are building a new warehouse. Groundwork has started.
The project will be finished in 2029. A new warehouse will enable more optimized logistic in existing stores, better capacity for further growth, support for online sales, and a change from manual to a more effective automated warehouse solution. If we look at history of Outlet Group, we can start with where we are today. The group has a total, the last 12 months, revenue of about NOK 2.5 billion. We had a growth of 18% compared with the same period earlier. We have our own brand share of 60% and an adjusted EBIT margin at 14.8% for the last 12 months. The company's history goes back to 1992 when we opened our first specialist sports store. For the first 20 years, our only focus were specialist sports stores. In 2009, we started to produce our own products under our own brands for the specialist stores.
First Sport Outlet store opened in 2012. The period from 2012 till 2025 has been a period with strong revenue growth every year, combined with strong profitability. If we look at the market, the Norwegian sport retail market is around NOK 21 billion. We have around 10% market share of that. We have introduced some new segments. Nutrition and supplements is one segment, and pet care and food. The total addressable market with these two segments is now NOK 31 billion. We have a lot of headroom to grow in the Norwegian market. Kids Outlet have an addressable market for about NOK 5 billion. What is our secret to success? The features are the same for both concepts. We are a pure player on price. We compete aggressive pricing on all price level, but majority of items are priced below NOK 300.
We avoid trend products and try to buy products with multi-year relevance. This keeps the inventory risk low. Another key factor for us is direct sourcing. Own production or products sourced by third parties, we try to source the products direct from factory to our warehouse. Fewer parties involved allow more margins to be retained within the Outlet Group, supporting lower customer price and attractive gross margins. Private label has been a key to success for Sport Outlet. It gives us a unique assortment, it gives value for the customers, and it gives us higher gross margins. We have invested a lot in developing our own production in-house. We have designers with extensive industry experience. We have set up a tailor and pattern constructors department where their only goal is to secure good fitting and good details and the quality of production.
We have also set up a laboratory to do quality tests for breathability, waterproofness, and other quality measures. We have also introduced expertise from specialists on different sport to help us develop the products so we can deliver really high-quality product at really good price. We own about 15 brands ourself, and we have recently introduced exclusive deals, rights with celebrity brands. We do not only use their name for the production, we also use their know-how. They are testing and helping us to find the right way to produce really good products. We have multiple opportunities for expansion and growth. First, we have Kids Outlet. End of this year, we have 30 stores of Kids Outlet. We are planning on open 15 to 20 new stores each year. We have already signed 11 new stores for next year. For Sport Outlet, we have today 119 stores in Norway.
We believe that we can easily fit 180 stores, so we will continue to open new stores. We have already signed for five new stores next year. Even though we have been running this business since 2012, we still have a lot of potential to develop existing categories and the celebrity brands and new categories. Here we have a lot of headroom to grow in. For the e-com, the revenue is about 4.5% of the total revenue on e-com. We believe that this can be lifted to 10%-15%, so we will invest a lot in this area the coming years. Warehouse, we have already talked about. We need to have the warehouse in place to be able to expand capacity for further growth. In Poland, we have set up three pilot stores. These stores will, in the first quarter next year, be evaluated.
Then they have run for a year, and when we do the evaluation there, we will then see what more we will do in the Polish market. Then I leave the word to Christer, who will take you through the financials.
Thank you, Tor- André. I will go through the third-quarter financials, starting with revenue. Strong revenue growth of 16.4% in Q3, NOK 740 million, and year-to-date 22%, NOK 1.8 billion. We see that the growth is supported by positive like-for-like in Sport Outlet and also the continued store expansion. For Sport Outlet, the revenue growth was 9.5% in Q3 and 15% year-to-date. Like-for-like of 5.2% and 10.9% year-to-date. The growth has been volume-driven and also across all core categories. Our main categories being apparel, shoes, and outdoor, where apparel is making the highest contribution to the growth in third quarter. We also see that the nutrition and supplements and also the newly launched dog supplies categories are making a good contribution during the quarter. Our online share of sales in Sport Outlet was 3.6% in Q3 and 4% year-to-date, with a decrease then from last year at 4.3% year-to-date.
The campaign activity has been broadly in line with the prior year. For the Polish pilot, we had NOK 4.8 million in Q3 with NOK 13 million year-to-date. The third Polish store opened in the end of August, meaning that it did not fully contribute to the third quarter. For Kids Outlet, the rapid expansion of stores generated now NOK 45 million in third quarter with NOK 100 million or NOK 99 million year-to-date.
We see that the early store performance is broadly in line with the communicated revenue expectations, and also important to note that Q4 will be a significant quarter for Kids Outlet with the Christmas demand. Moving on to gross margin, we had a strong increase of 1.6 percentage point in Q3, with a gross margin at 52.7% on group level. We see that the improvement is driven by the higher own-brand margins and also the increased own-brand share.
For Sport Outlet, the gross margin was 52.5%, up from 51.1% Q3 last year. The own brand share, as Tor- André talked about, was at 60.5% for third quarter and 54% last year. This reflects the strong and dedicated work that has been done on the own-brand department, developing new own brands, but also new categories within those brands, making a contribution to revenue, but also to gross margin. For Kids Outlet, the gross margin was 55.6% in Q3, 54.6% year-to-date, and we see an improvement quarter-to-quarter due to improved or a higher degree of direct sourcing from factories and also improved purchasing terms. It has also been done work on the product mix and pricing to further support the gross margin in Kids Outlet.
Kids Outlet has a higher margin profile than Sport Outlet, meaning that as Kids Outlet scales, we will also see an uplift on the gross margin at group level. Looking at OPEX is naturally increasing as we expand our store network. We also see a higher OPEX-to-sales. Looking at the adjusted OPEX-to-sales was 25.9% in Q3 compared to 24.2% last year. The adjusted items for Q3 was NOK 8.2 million in the IPO costs and for year-to-date basis NOK 14.8 million, including then a reorganization cost.
It's important to notice that Kids Outlet is now a bigger part of the cost base for the Outlet Group and has a different sales profile than Sport Outlet, meaning that Q4 is a higher weight on the sales for Kids Outlet, which of course is affecting the comparability now on OPEX compared to last year, where it was only Sport Outlet segment operational. Looking at the personnel expenses, we had 16.8% against the 16% of revenue in the third quarter last year. The increase is mainly salary adjustments, general salary adjustments, and also the contribution from Kids Outlet. For Sport Outlet, personnel expenses was broadly in line with last year. Looking at the group level, we also see that personnel expenses are on the same level as last year. Other OPEX is, we had adjusted OPEX-to-sales of 9.1% against 8.1% last year, reflecting higher activity.
For Sport Outlet, we had higher variable lease payments and premise expenses and also higher marketing cost this period. For Sport Outlet year-to-date, other OPEX is broadly in line with last year. Also here in this figure, you get the Kids effect of a larger part of the cost base in other OPEX. For OPEX on the segment, Sport Outlet 24.8% up from 23.7% in Q3, 29.8% against 29.7% year-to-date. Kids Outlet at 41% for Q3 and 47% year-to-date, reflecting the rollout establishment costs and also the overhead cost from the organization which has been built around Kids Outlet, and then also the seasonality related to sales. As we move along, the fixed costs related to organization of Kids Outlet, which is now largely established, will scale as we move on with the expansion.
For EBIT, we see an adjusted EBIT up 11.4% in Q3 to NOK 150 million. For year-to-date, NOK 262 million, 28% increase. For Sport Outlet, the EBIT margin was 21.5% against 21.6% last year, with NOK 150 million in Norwegian kroners in EBIT. Year-to-date, Sport Outlet has managed to lift the EBIT margin 1.3 percentage points to 15.3%. For Kids Outlet, we're delivering a positive EBIT of NOK 1.2 million in third quarter with a margin of 2.6. Looking at the profitable underlying store operations, this provide validation of the concept. Looking at the underlying profitability without then the allocated overhead costs, which is of course affecting the year-to-date segment profitability together with some expansion costs. For Kids Outlet, as mentioned, it's important to remember that Q4 will be a significant part of the revenue for the annual revenue. Cash flow and net working capital.
We had a strong operating cash flow in Q3, with cash flow from operation at NOK 327 million, up from NOK 270 million. The change in the working capital has been positive, and specifically, I would highlight that we have a lower inventory buildup in Q3 compared to last year. This is also prominent on our balance sheet, looking at inventories being broadly in line with last year's inventory level, despite us having expanded our store network with 30 stores. This reflects dedicated work on the purchasing budgets, but also the inventory planning for each store in Sport Outlet, and we managed to reduce the inventory in the Sport Outlet stores significantly, meanwhile optimizing the mix of the inventory. Also, as Tor-André has talked about, there is still room for improvement on the inventory for Sport Outlet through the initiatives that we are now rolling out.
For investment activities, CapEx at NOK 18 million in Q3 and NOK 80 million year to date is mainly related to the store expansion. Some growth CapEx on central warehouse to keep up with the growth, and also then the new warehouse project, which has commenced groundworks, are included in this figure with the cash effect.
On the financing activities, we had a cash flow from financing activities, an inflow of NOK 171 million compared to NOK 262 million in Q3 last year, primarily then driven by the proceeds from primary share offering related to our IPO of NOK 481 million, then offset by a dividend in July at NOK 163 million. Last year, the dividend of NOK 150 million was paid out in June, and this year in July, so that also affects the comparability. For the financial position, we have a solid liquidity and the capital structure at quarter end.
The cash and cash equivalents of north of NOK 500 million at quarter end, and a total credit facility, including the seasonal credit at NOK 1.5 billion, with roughly NOK 1 billion in undrawn credit facility at quarter end. The cash position, of course, strengthened by the NOK 481 million in net proceeds from primary offering. We see that the NIBD EBITDA is below zero compared to NOK 490 million last year. That is excluding IFRS 16. Looking at net debt, including IFRS 16, and also including the seller credit for our plot at Lyseparken, is NOK 573 million compared to the NOK 981 million same period last year. Solid equity ratio at 42.5%, up from 27.1%, and a leverage ratio below one times EBITDA compared to 1.6 times EBITDA last year. That concludes the financial update for the quarter.
We will also use the opportunity to reiterate the financial targets that has been communicated through the IPO, which remains unchanged. Thank you.