Despite a continued challenging environment, Björn Borg delivered a strong second quarter that beat our estimates. The valuation of P/E 16x and EV/EBIT 12x for 2025 still looks moderate and a combination of dividends and earnings growth should give around 10% total shareholder return.

Björn Borg will report its Q2’24 results on Friday, August 16. We anticipate good growth in revenue compared to the corresponding quarter last year, primarily driven by the integration of the footwear category and continued strong development in own e-commerce. Although we expect a favorable channel mix and reduced discounts to positively impact profitability, we forecast that EBIT-% will remain similar to last year's corresponding period due to increased costs associated with footwear integration and marketing. Given the challenging economic environment, our focus will be on demand-related information and updates on the footwear transition, which we consider the key highlights of the upcoming Q2 report.

Björn Borg has a strong track record of profitable growth, consistently generating value for its shareholders. We see solid growth opportunities in key markets for this strong Nordic brand. The valuation of P/E 15x and EV/EBIT 11x for 2025 looks moderate and a combination of dividends and earnings growth should give around 10-15% expected return.