Björn Borg (BORG) Q2 2025 earnings summary

Executive summary

• Net sales in Q2 2025 increased by 6% to SEK 226m, marking a quarterly sales record, with currency-neutral growth at 8.9%.

• Own e-commerce sales surged 26% year-over-year, and sports apparel grew 45%, highlighting digital and product strategy strength.

• Brand strength improved, ranking third in consumer consideration in Europe and showing strong momentum in Germany and Sweden.

• Wholesale channel rose 9%, while own retail declined due to store closures and absence of prior year government support.

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

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 higher costs.

• Net debt/EBITDA ratio at 0.71; equity ratio at 46.8%-50%.

• Working capital as a percentage of rolling gross sales rose to 22%, expected to stabilize around 20%.

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

Outlook and guidance

• Long-term objectives: 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.

• No formal guidance provided, but optimism for further market share gains and top-line growth.