Björn Borg levererade en stabil Q1-rapport – i stort sett i linje med våra förväntningar. Men hur ser läget ut för konsumenten just nu?

Björn Borg delivered a solid Q1 report, broadly in line with our expectations. As a result, we are maintaining our estimates largely unchanged. However, despite the good Q1 performance, the share price has risen nearly 20% since our last update. At current valuation levels, we view the risk/reward profile as less attractive. Consequently, we turn to a Reduce recommendation (prev. Accumulate) but maintain our target price of SEK 55 per share.

Björn Borg will report its Q1’25 results on Thursday, May 15. We expect solid revenue growth compared to the same period last year, primarily driven by the integration of the footwear category, increased sales in the sports apparel category, and continued good development in own e-commerce. We estimate a lower gross margin due to a shift in the sales mix, as well as higher operating costs, mainly due to increased marketing activities. However, we believe that the strong sales growth should provide some operational leverage leading to a slight increase in absolute EBIT. Our focus in the upcoming report will be on updates regarding the footwear transition, as well as demand-related information.

The March figures for the Swedish clothing market were published this morning. Sales grew by 6.5% from last year.

We have lowered our estimates in response to expectations of slower economic growth and weaker consumer confidence. Despite these downward revisions the current valuation offers an attractive risk/reward profile, as the share price has fallen by around -17% and the expected return exceeds our required return. Consequently, we raise our recommendation to Accumulate (prev. Reduce) but lower our target price to SEK 55 per share (prev. SEK 62), mainly due to lower estimates.