Björn Borg announces its decision to seize full control over the design, development, and distribution of its shoe line across all markets. This strategic move follows Serve & Volley’s reorganization, prompting Björn Borg to take the reins of its footwear destiny.
CEO Henrik Bunge expresses the company’s forward-looking vision, stating: “Integrating design and product development is the next natural step in our journey to build a global sports fashion brand.”
Björn Borg aims to amplify its presence in Europe while solidifying its footing in Scandinavia. The termination of the licensing agreement with Serve & Volley marks a pivotal moment, allowing Björn Borg to enhance quality, innovation, and design control, according to the brand.
Though this transition may pose temporary risks to sales and margins, Björn Borg remains bullish on the long-term prospects, confident in its ability to maintain at least a 10 percent annual operating margin. While the Serve & Volley reorganization could dent earnings by 5 million SEK (€448,000) in 2024, Björn Borg sees this as a short-term setback amidst a larger trajectory of growth.
In 2023, the footwear segment contributed approximately SEK 73 million (€6.5m) to Björn Borg’s sales, with earnings (EBIT) totaling around SEK 17 million (€1.5m). As Björn Borg takes strides to control its footwear destiny, it signals a decisive shift towards a more integrated and ambitious future.
