Björn Borg (BORG) investor relations material

Executive summary

• Net sales in Q2 2025 increased 6% to SEK 226m, marking a quarterly record, with own e-commerce up 26% and sports apparel up 45%, reflecting strong brand momentum and digital strategy.

• Growth was broad-based across most markets, especially in Sweden (+23%), Denmark (+32%), Germany (+21%), and Finland (+15%), while Belgium and Netherlands declined due to footwear.

• Wholesale sales rose 9–10%, while own retail declined 17–20% due to store closures and absence of prior year support.

• Underwear and bags contributed to growth, up 11% and 38% respectively; footwear declined due to distribution changes.

• Brand strength increased, especially in Germany, with brand consideration ranking third behind Nike and Adidas.

Financial highlights

• Q2 gross profit margin declined to 50.6% (down 1.2 ppt); currency-neutral margin was 47.5%.

• Operating profit increased 11.5% to SEK 10.6m, but profit after tax fell 39.4% to SEK 4.0m due to FX and margin pressure.

• Q2 operating margin was 4.7%; profit margin dropped to 2.2%.

• H1 2025 net sales up 7.6% to SEK 505.9m; profit after tax up 43.8% to SEK 39.9m.

• Equity/assets ratio at 46.8–50%; net debt/EBITDA at 0.71.

Outlook and guidance

• Long-term targets: annual sales growth ≥10%, operating margin ≥10%, dividend ≥50% of net profit, equity ratio ≥35%.

• Strategic focus on sports apparel, e-commerce, and expanding in Europe, especially Germany.

• Margin pressure expected to persist short-term due to discounting and product mix, but FX tailwinds may support gross margin.