Björn Borg AB, listed on Nasdaq Stockholm since 2007, has started the new fiscal year with good sales and very good development in operating profit. “The fact that we increased our operating profit in the quarter to SEK 31.4 million [€2.76m], despite the continued weak krona and a troubled world, is a real statement of strength,” CEO Henrik Bunge said in the company’s quarterly report.
The Swedish group’s net sales increased 9.0 percent to SEK 246.9 million (€21.71m), compared to SEK 226.6 million (€19.92m) in the first quarter of 2022. All markets except Germany grew in the quarter, with Sweden, Finland and especially the Netherlands showing very strong growth.
Net sales for own e-commerce and e-tailer were SEK 93 million (€8.18m), compared to SEK 94.6 million (€8.32m) in the same period last year, a decrease of 1.7 percent. Owned e-commerce sales increased 33 percent to 33.4 million (€2.94m).
In terms of product, Bunge said all segments grew, “with our fastest growing category being sports apparel, which increased by 19 percent, followed by bags, which grew by 17 percent. Both underwear and footwear grew by 6 percent in the quarter. The strength of our sports collection becomes particularly clear when we look at the growth of our own e-commerce, where our sports collection grew by 102 percent in the quarter.”
The gross profit margin was 52.2 percent (prior-year period: 50.0%). Operating profit was SEK 31.4 million (€2.76m), compared to SEK 29.3 million (€2.58m), with an operating margin of 12.7 percent (12.9%). Profit after tax was SEK 24.8 million (€2.18m), up 7.4 percent from the previous year.
According to Bunge, Björn Borg will continue to achieve profitable growth regardless of developments in the world and will continue on its path to building a global sports fashion brand. It is the company’s policy not to make public profit forecasts.
Björn Borg AB is primarily engaged in intra-group activities. As of March 31, 2023, the company owns 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc, Björn Borg Services AB, Björn Borg Ltd, Baseline BV, Belgian Brand Management BVBA, Björn Borg Finland Oy and Björn Borg Denmark ApS. The company also owns 75 percent of the shares in Björn Borg (China) Ltd.
