Björn Borg (BORG) Q4 2024 earnings summary

Executive summary

• Achieved record net sales in Q4 2024, up 19% year-over-year to SEK 235 million, and full-year sales reached SEK 989.7 million, driven by strong growth in Footwear (+57%) and Sports Apparel (+44%).

• Successfully integrated the Footwear business after a partner bankruptcy, managing operational challenges and maintaining profitability despite temporary margin dilution.

• Brand strength and consumer awareness increased across key markets, especially in Germany, Sweden, and the Netherlands, with new shop-in-shop openings and strong marketing activations.

• Wholesale channel grew 28% in Q4, own e-commerce up 10%, while own retail declined 2% due to strategic store closures; comparable store sales rose 5%.

• Board proposes a dividend of SEK 3.00 per share (104% of net profit), split into two payments, and seeks authorization to repurchase shares.

Financial highlights

• Q4 sales grew 19% year-over-year to SEK 235 million, with full-year net sales up 13.5% to SEK 989.7 million, both record highs.

• Gross margin for Q4 was 53.3% (down from 56.8%), and full-year margin was 52.6% (down from 54.0%), mainly due to one-off discounts and integration costs.

• Full-year operating profit rose 1.3% to SEK 101.8 million, but Q4 operating profit fell 16.7% to SEK 16.8 million due to integration and marketing costs.

• Profit after tax for 2024 was SEK 72.7 million, down 4.4% year-over-year; Q4 profit after tax dropped 33.3% to SEK 10.0 million.

• Net debt at year-end was SEK 8.5–9 million, with equity ratio at 49.7–50%.

Outlook and guidance

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

• Expectation of continued margin improvement in Footwear and steady gains in 2025, with a focus on expanding in Germany and Europe.