Björn Borg (BORG) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly sales, with Q3 2025 net sales reaching SEK 299.8 million, up 5.2% year-over-year, driven by 24% growth in sports apparel and strong brand momentum.

• EBIT increased by 7.3% to SEK 45.1 million, with net income for the quarter at SEK 36.9 million and year-to-date net income surpassing last year's full-year result.

• Brand consideration rose, ranking third among sports brands in consumer surveys, with increased awareness in Germany and strong offline activations.

• Strategic focus remains on transitioning to a global sports fashion brand, emphasizing multi-channel distribution, digital-first strategies, and European expansion.

• All key performance indicators improved in Q3 2025, reflecting solid progress.

Financial highlights

• Gross profit margin for Q3 was 52.5%, up 0.4 percentage points year-over-year, supported by favorable currency effects.

• Operating margin for Q3 was 15.1%, and earnings per share were SEK 1.47.

• Wholesale channel grew double digits, while e-commerce slowed due to selective discounting and changing digital marketing dynamics.

• Apparel sales grew 24% in Q3 and over 20% year-to-date; loungewear category up 57% year-over-year.

• Footwear segment underperformed, requiring further focus and team reinforcement.

Outlook and guidance

• No formal forecasts provided; focus remains on profitable growth in sports apparel, footwear, own e-commerce, and the German market.

• Long-term targets: annual sales growth of at least 10%, operating margin of at least 10%, dividend payout ratio of at least 50%, and equity ratio above 35%.

• Company aims to maintain a balance between growth and brand integrity, avoiding excessive discounting.

• Optimism expressed for continued growth in core categories and markets.