“Overall, a record sales quarter, with very strongown e-commerce growth in the quarter with a 32 percent increase."
Henrik Bunge, CEO BJÖRN BORG AB
Key facts
Net sales
Overall Net sales in Q3 2024 increased by 9% to SEK 285 m.
By channel, our focus on own e-com continued to result in a high growth rate of +32% while the largestchannel Wholesale expanded by a solid 5%.
Own Retail Stores experienced a decline of –5% which wasdue to store closures. Comparable store sales would have been stable (+1%). Distributors also grew by astrong +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 +29% and Sports Apparel with +25%. Both are our strategic focus categories, where we see the most significant growth opportunities. Our largest category Underwear was stable (–1%) while bags showed a temporary decline of –14% after good development since the beginning of the year.
By channel, our focus on own e-com continued to result in a high growth rate of +32% while the largestchannel Wholesale expanded by a solid 5%.
Own Retail Stores experienced a decline of –5% which wasdue to store closures. Comparable store sales would have been stable (+1%). Distributors also grew by astrong +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 +29% and Sports Apparel with +25%. Both are our strategic focus categories, where we see the most significant growth opportunities. Our largest category Underwear was stable (–1%) while bags showed a temporary decline of –14% after good development since the beginning of the year.
Gross profit margin
Gross profit margin declined by 0.5 ppt to 52.1%. Currency neutral the gross profit margin decreased by 1.4ppt to 51.2%.
Operating profit
Operating profit increased by 2.8% to SEK 42.0 m. Currency neutral the operating profit increased by 0.5%to SEK 41.1m.
Solidity
The financial solidity remains strong, showing an equity ratio of 47% and a net debt / EBITDA ratio of 1.21.
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 andpreference in sports apparel.
— Expand geographically focused on Europe
— Grow business share andpreference 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
+25%
Purchase intention HER in SE
23.1% in Q3 2023 → 28.8% in Q3 2024
+160%
Preference HIM in SE
1% in Q2 2023 → 2.6% in Q3 2024
+16%
UNAIDED AWARENESS HER
4,1% in Q2 2023 → 4,1% in Q3 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 Q3 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 Q3 2024
Wholesale
+5%
VS Q3 2023
Wholesale e-tailers with strong growth in the quarter, +21%.
Brick and mortar stores with a decline of -2%.
Brick and mortar stores with a decline of -2%.
Own E-com
+32%
VS Q3 2023
Own e-commerce keeps growing by +32%
Own retail
-5%
VS Q3 2023
Comparable stores +1%.
Distributors
31%
VS Q3 2023
Distributors with continued growth, increase with +31%.
Largest distributor, Norway, increase with +47%.
Largest distributor, Norway, increase with +47%.
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 Q3, with strong growth in sports apparel and footwear.
BJÖRN BORG AB – CATEGORY DEVELOPMENT Q3 2024
Underwear
-1%
Apparel
+25%
Bags
-14%
Footwear
+29%
[due to integration of the footwear licence business]
Operating income show improvement vs last year, while grossmargin declines due to footwear integration.
BJÖRN BORG AB – BOTTOM LINE KPIS Q3 2024
All balance sheet KPIs on good levels. Net debt increasing due to Footwear integration.
BJÖRN BORG AB – BALANCE SHEET KPIS AS PER Q3 2024
A quarter marked by strong momentum across all channels and categories.
BJÖRN BORG AB – KEY TAKEAWAYS Q3 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.
Continued strong sports apparel growth +25% and good progress with our footwear integration project +29%
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!
