Swedish flooring giant Kährs Group reported mixed first-quarter results, with sales declining 8% organically while maintaining stable order intake and strengthening cash flow amid increased geopolitical uncertainty affecting global markets.

The company posted sales of $53 million [SEK 541 million] for the period ending March 31, 2025, down from $67 million [SEK 643 million] in the same quarter last year, representing a 16% total decrease. However, when adjusted for currency effects, the organic decline was a more modest 8%.

Despite the sales drop, Kährs demonstrated operational resilience with order intake decreasing only marginally by 1% year-over-year, while the order backlog grew by 1%. Cash flow from operating activities improved to $4 million [SEK 41 million] from $3.75 million [SEK 36 million] in the previous year.

President and CEO Johan Magnusson noted encouraging developments in consumer markets despite broader challenges. "Consumer sales are showing signs of recovery, driven by increased interest in home renovations," he said. "The segment in Europe is strengthening thanks to lower inflation and interest rates, which promotes purchases of durable goods such as flooring."

The company has continued gaining market share in several key regions, particularly within the renovation segment, while the project market in the Nordics and USA remains challenging due to low construction activity in new builds.

Magnusson highlighted the impact of geopolitical tensions on market sentiment: "The market for residential newbuilt and commercial properties remains cautious, given the uncertain geopolitical situation, which poses a risk of increased trade barriers in the form of tariffs that could lead to increased uncertainty."