Knit Store in Karmøy: An Analysis of Companies, Economics, and Outlooks

Industry Overview

Karmøy has a relatively small but diverse knit store industry (knitting shops and similar businesses). There are 9 companies registered in the municipality, with a mix of AS (limited liability companies) and ENK (sole proprietorships). In recent years, the industry has been marked by significant fluctuations in revenue and labor costs, with both strong and weak years. Some companies have recently started operations and have not yet reported revenue, indicating a dynamic but unstable market.

Key Figures:

• Total number of companies: 9
• Number of employees (2025): 9
• Annual revenue (2025): NOK 3.8 million
• EBITDA margin (2025): -15.4% (average for the industry)

Economic Development

Revenue and Employees:

• Annual revenue experienced a sharp decline from 2017 (NOK 67.4 million) to 2018 (NOK 4.6 million), followed by a gradual increase since then. In 2025, revenue stood at NOK 3.8 million, which is lower than in 2021 (NOK 6.5 million).
• Number of employees has varied significantly, peaking at 37 in 2017 and declining to 9 in 2025. This development reflects both company startups and reduced activity.

EBITDA and Labor Costs:

• Most companies have negative EBITDA, with an average margin of -10% for AS and -14% for ENK. This indicates that the industry has very high operating costs relative to revenue.
• Labor costs account for an average of 54% of revenue for AS and 0% for ENK (which are often newly established or have no employees).

Companies in the Industry

There are 9 companies registered in Karmøy, distributed across the following organizational forms:

Key Companies:

• Perlestrikk AS (Åkrehamn): 7 employees, NOK 1.8 million revenue, but with a negative EBITDA of -258,000.
• Klompelompe AS (Karmsund): 1 employee, NOK 1.9 million revenue, but with a low EBITDA margin of -5%.
• New companies such as 4seasons By A Kvilhaugsvik and Hobbyhjørne Rønstad have not yet reported revenue or employees.

Observation: Most companies have a very low number of employees, indicating a large share of small, single-person businesses.

Geographic Distribution

Prominent Locations:

• Åkrehamn: 1 company (Perlestrikk AS) with 7 employees and NOK 1.8 million revenue.
• Karmsund: 1 company (Klompelompe AS) with 1 employee and NOK 1.9 million revenue, but with a low EBITDA margin.
• Stol: 1 company (Garnpånett AS) with 1 employee and NOK 199,000 revenue, but with a negative EBITDA of -19%.
• Kopervik: 1 company (Garnhuset Ester Nymann Vea) with 2 employees, but no revenue.

Observation: There is no clear geographic dominance, but Karmsund and Åkrehamn have the most active companies. Stol and Kopervik have companies with low revenue or no activity.

Operational Dynamics and Risks

Bankruptcies and Financial Challenges:

• There are no registered bankruptcies in the industry in Karmøy, indicating that companies are currently avoiding bankruptcy. Nevertheless, several companies have negative EBITDA and high debt levels:
• Perlestrikk AS: NOK 2.6 million debt
• Garnpånett AS: NOK 357,000 debt
• Klompelompe AS: NOK 302,000 debt

Conclusion: Although there are no bankruptcies, there are clear signs of financial challenges. Companies have high operating costs relative to revenue, and many have low or negative EBITDA. This may signal that the industry is marked by high operational challenges.

Outlook for Entrepreneurs

Opportunities and Challenges:

• Opportunities: There is room for new companies, especially in areas with high revenue such as Karmsund (Klompelompe AS). There are also opportunities to develop companies with a focus on digitalization or key competencies in the textile industry.
• Challenges: The industry has a low EBITDA margin and high operating costs. Entrepreneurs must be prepared to work on cost optimization and efficiency improvements.

Recommendation: Entrepreneurs should consider establishing themselves in areas with existing activity (such as Karmsund or Åkrehamn) and focus on achieving higher operational efficiency than current companies.

Comparison with the Broader Industry

Creative, Arts, and Entertainment Activities:

• This industry has 70 companies in Karmøy, showing that knit stores are a small subgroup within a larger sector. The broader industry had a revenue of NOK 122.1 million in 2025, while knit stores had NOK 3.8 million.
• Peer companies in the broader industry include large clothing stores such as H&M, Lindex, and Dressmann, which have higher revenue and better EBITDA margins.

Conclusion: The broader industry has higher volume and more stable companies, while knit stores are a smaller, more uncertain sector. Entrepreneurs should consider learning from larger companies in the broader industry but be aware that knit stores have unique challenges.

Conclusion

The knit store industry in Karmøy is a small but diverse sector with both opportunities and challenges. There is room for new companies, especially in areas with existing activity, but entrepreneurs must be prepared to work with high operating costs and low EBITDA margins. The broader industry (creative, arts, and entertainment activities) has higher volume and more stable companies, which can provide inspiration.

SmartGrunder can help entrepreneurs find suitable locations and evaluate potential development opportunities in Karmøy. We recommend a thorough analysis of operating costs and the market before establishing a business.