This report does not constitute a rating action. We expect challenging market conditions to continue pressuring the group’s top line and profitability. We foresee a material decline in the company’s reported top-line growth this year of 8.5%-9.5%, including about 6% is on a constant perimeter basis. This will be primarily because of continued softer volumes and low store traffic, especially in the wholesale and directly operated stores (DOS) channels, execution delay due to the Middle East conflict, and currency headwinds. We highlight the perimeter impact from the sale of Louis Poulsen to a Danish investing company on Sept. 21, 2026 on reported figures. We expect profitability to weaken following the disposal, given that Louis Poulsen had higher margins than the
