Discussion about Björn Borg in Swedish, luckily you can get decent subtitles in other languages if you don’t know Swedish.
Björn Borg’s Henrik Bunge was interviewed by @lucas.mattsson.
Björn Borg published its Q4 report today, which shows strong growth but a decreased operating profit. Head Coach Henrik Bunge is interviewed by analyst Lucas Mattsson, where they discuss the full year 2024, focus on growth or profitability, how consumers are doing, and what investors should keep an eye on in 2025.
Topics:
00:00 Intro 00:57 The Consumer 2024 02:19 Growth in Q4 03:52 Operating Margin 04:54 The Shoe Segment 07:08 Financial Goals 08:27 Growth vs. Profitability 09:17 2025
EDIT:
The Inderes Nordic channel also has many English videos, and the channel will soon reach 1,500 subscribers
Björn Borg delivered weak Q4 earnings due to a lower gross margin and higher operating expenses, which more than offset the benefits of strong revenue growth. The company’s earnings multiples for this year are at the upper end of our acceptable valuation range, with a P/E ratio of approximately 18x and an EV/EBIT of ~14x. At current valuations, we would like to see clearer evidence that the company can successfully expand its footwear category while maintaining solid profitability. Based on our updated estimates, we believe the stock is relatively fairly valued. As a result, we lower our recommendation to Reduce (prev. Accumulate) and adjust our target price to SEK 62 per share, primarily due to revised estimates.
Linkin takaa on hyvin tiiviis analyysi kalsareista.
Björn Borg (“Björn Borg”, “the Company” or “the Group”) is a well-established and renowned company with a rich history spanning decades, earning the place as a favored brand among a broad consumer base. Nevertheless, the predominant association of Björn Borg with underwear presents a compelling challenge: to transition consumer perception from an underwear brand to a sports fashion brand. This strategic shift, central to the Company’s vision since 2014, has already yielded noteworthy progress, as amplified marketing investments and a strengthened brand have driven strong growth in Sports Apparel and Footwear. Analyst Group estimates an attractive growth trajectory on the horizon, supporting a gradual improvement in margins. The forecasted EBIT for 2025 stands at SEK 124m (131), and by applying a forward EV/EBIT multiple of 12.0x (12.0), this presents a potential value of SEK 58.4 (61.3) per share in a Base scenario.
We have lowered our estimates in response to expectations of slower economic growth and weaker consumer confidence. Despite these downward revisions the current valuation offers an attractive risk/reward profile, as the share price has fallen by around -17% and the expected return exceeds our required return. Consequently, we raise our recommendation to Accumulate (prev. Reduce) but lower our target price to SEK 55 per share (prev. SEK 62), mainly due to lower estimates.
I’m keeping an eye on this shop. Underwear is selling at such a price per kilo that it’s no wonder the return on equity is over 20%. What prevents me from jumping on board with this is that Marimekko seems like a higher quality company, at least in terms of numbers
@lucas.mattsson on tehnyt tuoreen yhtiöraportin Björn Borgista.
Björn Borg delivered a solid Q1 report, broadly in line with our expectations. As a result, we are maintaining our estimates largely unchanged. However, despite the good Q1 performance, the share price has risen nearly 20% since our last update. At current valuation levels, we view the risk/reward profile as less attractive. Consequently, we turn to a Reduce recommendation (prev. Accumulate) but maintain our target price of SEK 55 per share.
Lucas Mattsson has provided his preliminary comments as Björn Borg publishes its Q2 results next Friday.
Björn Borg will publish its Q2’25 results on Friday, August 15. We expect some revenue growth despite difficult comparison figures and currency headwinds, and profitability to remain at a good level. In the upcoming report, we will focus on the company’s key growth categories, sportswear and footwear, as well as demand-related information.
Here is Lucas Mattsson’s company report on Björn Borg after Q2.
Björn Borg’s Q2 report was mixed. While the company reported strong revenue, it did not come without costs, and profitability was lower than our expectations. The company’s valuation multiples for this year are at the upper end of our accepted valuation ranges, with a P/E ratio of approximately 18x and an EV/EBIT of approximately 14x. At current valuation levels, we would like to see clearer evidence that the company can successfully grow its revenue while maintaining a stable gross margin. As a result, we reiterate our Reduce recommendation and a target price of SEK 55 per share.
Hi! My name is Lucas and I cover, among other things, Björn Borg. Since our forum has now switched to multilingual mode, you can ask me questions and I will participate in the discussion here.
@lucas.mattsson has written preliminary comments as Björn Borg announces its results next week Friday.
We expect strong revenue growth, primarily driven by strong sales to larger retailers in mature markets. We anticipate that sales growth, combined with positive currency effects on gross margins, will maintain profitability at a good level. In the upcoming report, we will focus on the company’s key growth categories, sportswear and footwear, and ensure that the company can successfully grow its revenue while maintaining stable underlying gross margins.
And here are Lucas’s quick comments on the morning’s results.
Björn Borg’s Q3 revenue was only slightly below our absolute forecasts. Although operational cost development was stable, slightly lower revenue than our expectations also led to Q3 operating profit being slightly below our expectations. Overall, the sportswear category continues to outperform, but for the company to achieve the higher growth in line with its targets, it must also boost the footwear category, which has underperformed so far.
And here is the new company report on Björn Borg by Lucas.
Björn Borg’s Q3 report was overall roughly in line with our estimates. In our view, the company continues to show good revenue growth, but it does not come without costs, as gross margins (FX adj.) have decreased over the last three quarters. At current valuation levels (2026 P/E: 17x and EV/EBIT: 13x), we would like to see clearer evidence that the company can successfully expand its footwear and sportswear categories while maintaining stable gross margins. As a result, we reiterate our Reduce recommendation, but raise our target price to SEK 57 per share (prev. SEK 55), mainly due to a slight increase in short-term earnings estimates.
Here are Lucas’s comments on the performance of the Swedish clothing market in early December.
Preliminary December sales figures for the Swedish clothing market up to the 16th fell by 8.4%. Although we consider the figures to be quite weak, the period is relatively short, so it can be influenced by several factors, such as the timing of Black Week sales.
Here are Lucas’s preview comments as Björn Borg reports its Q4 results on Friday, February 13 : )
Björn Borg will release its Q4’25 results on Friday, February 13, 2026. We expect the company to report moderate revenue growth, as it faces tough comparison figures in its largest market, Sweden, as well as an unstable retail environment. While we expect the sportswear category to remain the growth driver, reported total revenue growth is likely to be slowed by a strengthening SEK. We anticipate profitability to remain at a stable level, supported by good cost control and favorable currency exchange rate effects on gross margins.
