Björn Borg operates in the fashion industry and focuses on the design, manufacture and distribution of sportswear and underwear. The company's products are aimed at private individuals looking for comfortable and stylish clothing. The business is global with a main presence in the Nordic region and Europe. Björn Borg was founded in 1984 and is headquartered in Solna.
Preliminary Swedish clothing market data for December sales up to the 16th were down 8.4%. Although we believe that the figures was relativley weak, the period is quite short, so it can be affected by various factors such as the timing of Black Week sales.
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 cost as gross margins (FX adj.) have declined in the past three quarters. At current valuations (2026 P/E: 17x and EV/EBIT: 13x), we would like to see clearer evidence that the company can successfully expand its footwear and sports apparel category while maintaining solid 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.
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Björn Borg delivered Q3 revenue that was only slightly below our estimates in absolute terms. While operational cost development was solid, the marginally lower revenue also led to Q3 operating profit coming in just below our expectations. Overall, the sports apparel category continues to outperform, but for the company to achieve higher growth in line with its targets, it needs to lift the shoe category as well, which has so far underperformed.
Björn Borg’s Q2 results were mixed. While the company reported strong revenue, it did not come without costs and profitability was lower than our expectations. 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 revenue while maintaining solid gross margins. As a result, we reiterate our Reduce recommendation and target price of SEK 55 per share.
Björn Borg's Q2 report delivered mixed results. While revenue slightly exceeded our expectations, profitability fell short, primarily due to lower gross margins. It is worth noting, however, that Q2 is seasonally the smallest quarter, accounting for only around 5% of full-year EPS on average over the past three years.
Björn Borg will report its Q2’25 results on Friday, August 15. We expect some revenue growth despite tough comparable figures and FX headwinds, and profitability to remain at good levels. Our focus in the upcoming report is on the company’s main growth categories, sports apparel and footwear, as well as demand-related information.
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.
