Source: Inderes & Pinpoint (retail consensus 05.08.26, 61 estimates)

Björn Borg will publish its Q2 report on Friday, August 14. We expect the company to deliver solid revenue growth, primarily driven by the sports apparel category and its own e-commerce, while the underwear segment normalizes after a strong Q1. We forecast a year-on-year improvement in profitability, supported by higher sales volumes and a favorable channel mix.

We expect good growth in own e-commerce and sports apparel

We forecast Björn Borg's Q2 revenue to reach 241 MSEK (Q2'25: 226 MSEK), representing a reported growth of 6.8%, largely in line with Retail Consensus (Pinpoint Estimates). We estimate that the company's own e-commerce segment will be a key revenue driver, returning to double-digit growth after a temporary Q1 setback, supported by a good momentum in sports apparel. We anticipate low-single-digit growth in the wholesale channel, mainly due to slower growth in the underwear segment as summer deliveries shifted into Q1, and continued weakness in footwear sales in the Netherlands and Belgium, where the company is currently working to improve distribution. However, we expect the footwear category as a whole to return to growth, as Björn Borg now faces easier comparison figures after four consecutive quarters of decline, and as performance is also improving within the company's own e-commerce channel.

In terms of geography, we estimate that Sweden will show solid growth, despite facing tough comparables, supported by good underlying market development (some 4% y/y average growth during Q2'26). In addition, we expect Germany to continue to show good growth, supported by increased sales to its large e-tailer Zalando that reported a strong Q2. However, as we have previously noted, the German market is not necessarily only about sales to German consumers, as Zalando sells across different geographies. We expect sales to German consumers to have been more challenging in Q2 due to weak underlying market data, where clothing sales decreased by an average of 4% in Q2. On the other hand, German consumers have faced headwinds for some time, despite this, Björn Borg brand has delivered strong sales growth towards German consumers.

Favorable mix and volume growth to support a slight margin expansion

The second quarter is typically Björn Borg's seasonally weakest period due to the ordering practices of its retail partners, with fulfillment and invoicing predominantly occurring in Q3. Nevertheless, we expect the company to demonstrate healthy operational leverage. We forecast an adjusted EBIT of 13.1 MSEK (Q2'25: 10.6 MSEK), corresponding to an EBIT margin of 5.4% (Q2'25: 4.7%), slightly below Retail Consensus. The expected profitability improvement is driven by higher sales volumes and a favorable channel mix, as the higher-margin own e-commerce segment continues to grow. On the other hand, we expect some cost pressure from higher energy prices to affect sourcing, production, and logistics. While the gross margin has previously been supported by currency tailwinds, we expect these to fade somewhat as they normalize in the comparison base. Furthermore, we anticipate marketing investments to remain relatively high as the company continues to drive brand awareness in growth markets such as Germany.

Focus on consumer sentiment and footwear integration

Björn Borg does not provide short-term financial guidance. However, the company's long-term financial targets include annual revenue growth of at least 10% and an annual operating margin of at least 10%. We will look for management's comments on the overall demand environment, as consumer confidence in Europe remains subdued due to geopolitical tensions.

In our view, achieving the 10% revenue growth target sustainably will require a stronger contribution from the footwear category, which has underperformed since its full integration into operations. We will therefore pay close attention to any commentary regarding the ongoing work to improve quality, design, and distribution within this segment. Additionally, we will look for updates on the performance of its own e-commerce channel, which we consider a crucial source of profitable growth and a key factor in expanding the brand's geographic reach.