Overall, a record sales quarter, with particularly strong development in our two strategic focus areas: footwear +57% and sportswear +44%"
Henrik Bunge, CEO BJÖRN BORG AB
Key facts
Net sales
Overall Net sales in Q4 2024 increased by +19% to SEK 235 m
By channel, the largest channel Wholesale increased by +28% while at the same time own e-com continued to grow with a solid +10%. Own Retail Stores experienced a decline of –2% which was due to store closures. Comparable store sales would have been +5%. Distributors also grew by a strong +13% compensating for a weaker development in the beginning of the year.
Own Retail Stores experienced a decline of –5% which was due to store closures. Comparable store sales would have been stable (+1%). Distributors also grew by a strong +31% compensating for a weaker development in the beginning of the year.
By product category, the growth in the quarter was predominantly driven by Footwear with +57% and Sports Apparel with +44%. Both are our strategic focus categories, where we see the most significant growth opportunities. Our largest category Underwear was also showing strong growth at +14% andBags bounced back with a growth of 30%.
By channel, the largest channel Wholesale increased by +28% while at the same time own e-com continued to grow with a solid +10%. Own Retail Stores experienced a decline of –2% which was due to store closures. Comparable store sales would have been +5%. Distributors also grew by a strong +13% compensating for a weaker development in the beginning of the year.
Own Retail Stores experienced a decline of –5% which was due to store closures. Comparable store sales would have been stable (+1%). Distributors also grew by a strong +31% compensating for a weaker development in the beginning of the year.
By product category, the growth in the quarter was predominantly driven by Footwear with +57% and Sports Apparel with +44%. Both are our strategic focus categories, where we see the most significant growth opportunities. Our largest category Underwear was also showing strong growth at +14% andBags bounced back with a growth of 30%.
Gross profit margin
Gross profit margin declined by 3.5 ppt to 53.3%. Currency neutral the gross profit margin decreased by 3.3ppt to 53.5%.
Operating profit
Operating profit decreased by 16.7% to SEK 16.8 m, entirely related to the footwear integration and increased marketing investments. Currency neutral the operating profit decreased by 14.8% to SEK 17.2 m.
Solidity
The financial position remains strong, showing an equity ratio of 50% and a net debt / EBITDA ratio of 0.08.
Where we want to go
Our mission, our business strategy and our long-term financial objectives are clearly set.
Our mission
We inspire people to be more, through our belief that sports can make our minds, souls and bodies become something more than what we are today, and that anyone can become anything.
Our long-term financial objectives
— Annual sales growth of min 10%
— Annual operating margin of min 10%
— Annual dividend of min 50% of net profit
— An equity/assets ratio of min 35%
— Annual operating margin of min 10%
— Annual dividend of min 50% of net profit
— An equity/assets ratio of min 35%
Our business strategy
— Increase share of on-line and business with e-tailers.
— Grow business share and preference in sports apparel.
— Expand geographically focused on Europe
— Grow business share and preference in sports apparel.
— Expand geographically focused on Europe
Our brand journey continues in the right direction with strong brand heat signs.
We conducted surveys in our biggest markets to find out if we were their last purchase or top 3
+32%
Purchase intention HER in SE
23.7% in Q4 2023 → 31.4% in Q4 2024
+14%
Purchase intention HER in NL
24% in Q4 2023 → 27.4% in Q4 2024
+15%
AIDED AWARENESS HIM in DE
49.9% in Q4 2023 → 57.5% in Q4 2024
— A variety of touchpoints gives us a great reach and with that an increased awareness
— Offline activations works well among our male target group, such as partnerships with Barry’s, Tough Viking etc.
— Our message “Train To Live” is resonating well with our target group
— A strong online and influencer focus is clearly working
— Offline activations works well among our male target group, such as partnerships with Barry’s, Tough Viking etc.
— Our message “Train To Live” is resonating well with our target group
— A strong online and influencer focus is clearly working
Source: Brand Track Data from weekly end consumer surveys done by XTREME. 22k people/year. Markets: SE, NO, FI, DK, NL, BE, DE.
Increasing our strong market position in men’s underwear andat the same time increasing our apparel position
BJÖRN BORG AB – Brand heat KPIs 2018 - 2024 - All countries
Source: Brand Track Data from weekly end consumer surveys done by XTREME. 22k people/year. Markets: SE, NO, FI, DK, NL, BE, DE.
The growth continues in the third quarter of 2024, delivering a clear sales record in the history of Björn Borg.
BJÖRN BORG AB – Net Sales development by quarter [SEK m]
Strong momentum overall, especially in Germany and Finland. Distributors back to growth.
BJÖRN BORG AB - TOTAL SALES DEVELOPMENT Q4 2024 BY COUNTRY
Source: BB AB Investor Relations
Own e-commerce continues to grow strongly. Wholesale holding up well and distributors on continued growth.
BJÖRN BORG AB – Channel development Q4 2024
Wholesale
+28%
VS Q4 2023
Wholesale e-tailers withstrong growth in the quarter,+15%.
Brick and mortar stores backto strong growth with +36%.
Brick and mortar stores backto strong growth with +36%.
Own E-com
+10%
VS Q4 2023
Own e-commerce keeps growing by +10%
Own retail
-2%
VS Q4 2023
Comparable stores +5%.
Distributors
13%
VS Q4 2023
Distributors with continued growth, increase with +13%.
Largest distributor, Norway, increase with +51%.
Largest distributor, Norway, increase with +51%.
Strong online development in the quarter, across all channels, predominantly external e-tailers.
BJÖRN BORG AB – Online sales 2020-2024 [SEK m]
Source: BB AB Investor Relations
Mixed performance among the categories in Q4, with strong growth in sports apparel and footwear.
BJÖRN BORG AB – CATEGORY DEVELOPMENT Q4 2024
Underwear
+14%
Apparel
+44%
Bags
+30%
Footwear
+57%
Operating income show improvement vs last year, while grossmargin declines due to footwear integration.
BJÖRN BORG AB – BOTTOM LINE KPIS Q4 2024
All balance sheet KPIs on good levels. Net debt increasing due to Footwear integration.
BJÖRN BORG AB – BALANCE SHEET KPIS AS PER Q4 2024
A quarter marked by strong momentum across all channels and categories.
BJÖRN BORG AB – KEY TAKEAWAYS Q4 2024
1.
The Björn Borg Brand continues to strengthen across our main markets.
2.
Overall record sales with strong recovery for distributors and very good momentum for own e-com.
3.
Very strong sports apparel growth +44% and good progress with our footwear integration project +57%
Björn Borg is on a solid basis to show continued profitable growth.
1. Steady profitable growth since 2014.
2. Strategy for continued profitable growth in the years to come.
3. Stable and high dividend payments.
4. Safe equity ratio and net debt ratios way below bank covenant.
5. Strong, professional and committed management team.
6. Solid business foundation due to new ERP system, e.com platform, cyber security process and supply chain set-up.
7. Growth initiatives identified to support annual sales growth of at least 10%
Thank you!
