Björn Borg

We continue to see good opportunities for the company to get back on track and deliver profitable growth and solid value creation. As a result, we continue to view Björn Borg as an interesting investment opportunity, given the attractive combination of expected earnings growth and dividend yield.

Gross margin surged to 56.2%, cushioning the impact of a 12% revenue decline driven by wholesale timing shifts.

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.

In our view, Björn Borg has made good progress executing its strategy of expanding its core product categories and own e-commerce channel, which we expect to keep driving profitable growth.

Björn Borg’s Q1 results came in above our expectations, and we view the share price reaction following the report as justified. While we have raised our short-term estimates following the Q1 beat, our mid- to long-term estimates remain largely unchanged. In our view, given the ongoing uncertainty in the operating environment and lack of clear evidence that the company can successfully scale its footwear segment, we believe the stock is already fairly priced for its expected earnings growth (2026e P/E: 17x). As a result, we reiterate our Reduce recommendation and target price of SEK 67 per share.

Björn Borg's Q1 revenue growth was better than our expectations, which in combination with increased gross margins resulted in a strong earnings beat. In our view, we view positivley on that sports apparel category contniues to show double-digit growth, however, there were yet no clear signs of an overall turnaround in the footwear category, which we belive will be key for the company to accelerate its revenue growth going forward.

We have lowered our near-term estimates to reflect softer end-market demand than previously anticipated.