Earnings call transcript: Björn Borg Q2 2026 sales drop ends 25-quarter growth run

Björn Borg, the Swedish sportswear company, reported a 12% drop in second-quarter sales compared to a year earlier, marking the end of a 25-quarter growth streak. Despite this decline, the company's gross margin expanded by 5.6 percentage points and operating profit increased by 11%. The stock of Björn Borg fell 4.08% to $63.40 from $66.10, still trading above its 52-week low of $56 and below the $78 high.

Analysts had expected earnings of $0.3925 a share and revenue of $241.65 million, but those figures were not disclosed in the provided materials. Björn Borg's direct-to-consumer business, particularly e-commerce, showed strong performance, growing 17% and apparel sales rising 28% in the quarter. The company's gross profit margin of 52.87% and return on equity of 24% underscore its strong profitability.

Björn Borg pays a dividend yield of 6.81%, providing income to shareholders during this growth pause. The company aims for 10% sales growth and at least a 10% EBIT margin, currently above the profit target but below the growth target. Björn Borg plans to invest more in growth, especially in performance marketing and brand-building activities, and is focusing on expanding its e-commerce and wholesale network, particularly in Germany through Zalando and own e-commerce.

CEO Henrik expressed disappointment in the quarter but emphasized the company's focus on improving sales momentum rather than profitability.