Björn Borg achieves strongest Q1 in company history with double-digit growth in sports apparel

Swedish sports fashion brand Björn Borg has reported the strongest first quarter in the history of the company, with record levels achieved for both net sales and operating profit. The group saw continued momentum in its sports apparel category, marking 15 consecutive quarters of double-digit growth for the division.

Strong financial performance across group operations

For the period from January 1 to March 31, 2026, group net sales increased by 7.3 percent to 300.6 million kronor (32.40 million dollars), up from 280 million kronor in the previous year. On a currency-neutral basis, the increase in net sales was 10.9 percent.

Operating profit experienced a significant uplift, rising 37 percent to 46.9 million kronor compared to 34.2 million kronor in 2025. The gross profit margin improved to 54 percent from 49.9 percent, a development attributed to earlier deliveries in underwear and sports apparel which provided more time for sell-through on the shop floor. Profit after tax amounted to 36.9 million kronor, while earnings per share before and after dilution reached 1.47 kronor.

Performance by product category and channel

The underwear category, which remains the largest product area for the group, grew by 15 percent to 140.3 million kronor. Sports apparel also continued its positive trajectory with a 12 percent increase, reaching 90.4 million kronor. However, the group faced challenges in other areas: Footwear sales decreased by 20 percent to 35.4 million kronor. Bags fell by 19 percent to 11.7 million kronor. Other products, including swimwear and socks, rose by 14 percent.

In terms of sales channels, the wholesale business remains the largest contributor, growing 11 percent to 233.6 million kronor. Within this channel, e-tailers showed particularly strong growth of 20 percent. Direct-to-consumer (D2C) results were mixed; while own e-commerce grew by 2 percent to 52.5 million kronor, sales in own stores decreased by 29 percent to 13.1 million kronor. The group noted that the decline in physical store sales was largely due to the strategic closure of two unprofitable locations. For comparable stores, the decrease was 8 percent.

Regional growth led by Germany and Denmark

Geographically, the Swedish market grew by 3 percent to 104.6 million kronor, primarily supported by own e-commerce. Germany, which Björn Borg has identified as a strategic growth market, delivered a robust performance with a 38 percent increase in sales. Finland and Denmark also reported strong results, with increases of 27 percent and 67 percent respectively.

Conversely, the Netherlands and Belgium saw sales contract by 9 percent and 14 percent.

Björn Borg chief executive officer Henrik Bunge confirmed that the group will maintain its strategic direction for 2026, focusing on profitable growth in sports apparel, footwear, e-commerce, and the German market. Bunge acknowledged that footwear and own e-commerce are currently performing somewhat below internal plans, with action plans in place to address these areas.

“Never before have we generated higher sales or delivered a stronger result in a first quarter,” stated Bunge. “Growth in sports apparel continues, and with this quarter the category has now delivered 15 consecutive quarters of double-digit growth”.

The board of directors has proposed a dividend of 3.00 kronor per share for the financial year 2025, representing 82 percent of profit after tax. The annual general meeting is scheduled for May 19, 2026.