The Swedish sportswear provider Björn Borg AB has recorded the strongest first quarter in the company’s history. The company announced on Wednesday that record levels were achieved in both net sales and operating profit. The Group has experienced continued momentum in the sportswear category and has now reported double-digit growth in this area for 15 consecutive quarters.
In the period from January 1st to March 31st, group sales amounted to 300.6 million Swedish crowns (27.7 million euros), which corresponded to an increase of 7.3 percent compared to the same quarter of the previous year. Adjusted for currency effects, revenue grew by 10.9 percent.
Operating profit increased by 37 percent to 46.9 million Swedish krona. The gross profit margin improved from 49.9 percent to 54 percent. This development is attributed to earlier deliveries of underwear and sportswear, which allowed more time for sales on the sales floor. Net profit after tax amounted to 36.9 million Swedish kroner (3.4 million euros). Earnings per share reached 1.47 Swedish krona.
The wholesale business remains the engine of growth
In the underwear category, which remains the group’s largest product area, quarterly sales grew by 15 percent to 140.3 million Swedish krona. The sportswear segment also developed positively, with an increase of twelve percent to 90.4 million Swedish krona. However, the group faced challenges in other areas: revenue from shoes fell by 20 percent to 35.4 million Swedish kronor, while the bags category reported a 19 percent decline to 11.7 million Swedish kroner. Total sales of other products such as swimwear and socks increased by 14 percent.
Among the sales channels, the wholesale business remains the largest revenue generator. It grew by eleven percent to 233.6 million Swedish krona. Within this channel, e-tailers recorded particularly strong growth of 20 percent. In its own retail sector, the results were mixed: While its own e-commerce grew by two percent to 52.5 million Swedish kronor, sales in its own stores fell by 29 percent to 13.1 million Swedish kroner. According to the company, these losses were largely due to the strategic closure of two unprofitable locations. On a comparable basis, the decline was eight percent.
In the “strategic growth market” of Germany, sales rose by 38 percent
Geographically, the Swedish market grew by three percent to 104.6 million Swedish krona. This increase was mainly driven by our own e-commerce. Germany, which management sees as a strategic growth market, delivered robust figures with sales increasing by 38 percent. Finland and Denmark also reported strong results, with increases of 27 percent and 67 percent respectively. The Netherlands and Belgium, on the other hand, recorded declines in sales of nine percent and 14 percent respectively.
CEO Henrik Bunge reiterated that the group would maintain its strategic direction for 2026. The focus is on profitable growth in sportswear and shoes as well as in e-commerce and on the German market. Bunge admitted that the shoe business and its own e-commerce are currently slightly below internal planning. However, measures to improve these areas have already started.
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