Björn Borg (BORG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 net sales of SEK 301 million, up 7.3% year-over-year, marking the 21st consecutive quarter of sales growth and 15th consecutive quarter of double-digit Sports Apparel growth.

• Operating profit increased 37% year-over-year to SEK 47 million, with a strong operating margin and gross margin improvements.

• Growth driven by strong performance in Sports Apparel and Underwear, with Underwear up 15% and Apparel up 12% year-over-year.

• Strong sales momentum in Germany (+38%), Denmark (+67%), and Finland (+27%), while Belgium and Netherlands saw declines.

• Wholesale channel grew by 11%, own e-commerce by 2%, while own retail declined by 29%.

Financial highlights

• Net sales reached SEK 301 million, a 7.3% increase year-over-year; currency-neutral growth exceeded 10%.

• Gross margin improved by 4.1 percentage points to 54.0%.

• Operating margin rose by 3.4 points to 15.3%; EBIT at SEK 47 million, up 37% year-over-year.

• Operating expenses increased 8% to SEK 220 million.

• Equity asset ratio increased to 53.5%, up 1.5 points year-over-year; net debt decreased by SEK 15 million.

Outlook and guidance

• Continued focus on double-digit, currency-neutral growth, with Germany as a new market expansion.

• Ongoing efforts to rebuild and grow the Footwear category, particularly in Holland and Belgium.

• Ambition to return own e-commerce to double-digit growth, leveraging AI and reduced discounting.

• Long-term objectives include 10% sales growth, 10% operating margin, 50% dividend payout ratio, and 35% equity/assets ratio.

• No formal forecasts provided.