Stockholm-based sports fashion group Björn Borg published its 2025 annual report on Friday. This shows record profitability and sustained sales growth. For the full year, the group’s net sales rose by 5.5 percent to 1.04 billion Swedish crowns (around 98.1 million euros). In the previous year they were 989.7 million Swedish crowns. Adjusted for currency effects, annual sales growth reached 7.8 percent.
Operating profit for the 2025 financial year rose by 9.5 percent to 111.5 million Swedish crowns. Profit after taxes increased by 26.7 percent to 92.1 million Swedish crowns. Chief Executive Officer (CEO) Henrik Bunge emphasized that the fourth quarter was the best in terms of sales and profitability during his 11-year tenure. Quarterly operating income jumped 28.5 percent.
Sportswear drives product performance
The group’s clothing collection was a key growth driver throughout the year. The sportswear product segment grew by 24 percent for the year as a whole. This was supported by a 31 percent increase in wholesale and 30 percent growth in the company’s own e-commerce.
Annual sales for the underwear category remained relatively stable. They fell by one percent, mainly due to a reduction in the number of physical stores. Net sales from the company’s own e-commerce platforms rose 19.7 percent to 216.6 million Swedish crowns for the full year.
Sales of shoes and bags recorded slight declines of one percent and five percent respectively for the year as a whole. This prompted management to increase focus and investment in these categories for the coming year.
Market and channel development
Sweden remains the group’s largest market. It grew by 13 percent for the year as a whole. This is followed by the Netherlands, which also recorded an increase in the wholesale segment. Finland and Germany performed particularly strongly in the fourth quarter; they grew by 25 percent and 21 percent, respectively. Belgium and the Norwegian distribution market, however, recorded weaker demand.
The group continued to optimize its retail network. It ended 2025 with 11 company-owned stores, down from 13 at the end of 2024. This reduction was part of a strategic shift to close unprofitable locations.
Based on the strong results, the board has proposed a dividend of 3.00 Swedish krona per share. This corresponds to the previous year and represents 82 percent of net profit. The Board of Directors has also requested approval for a share buyback program.
Looking ahead to 2026, Bunge expressed confidence in the brand’s clear direction. He expressed confidence that the company can navigate ongoing geopolitical and macroeconomic uncertainty.
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