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Research

Björn Borg Q3'24: Maintaining a good pace despite challenging conditions

By Lucas MattssonAnalyst
Björn Borg
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The operating environment continues to be challenging due to low consumer purchasing power and confidence. In addition, Björn Borg has, during the past year, struggled with internal challenges in integrating the footwear distribution from the previous partner that went bankrupt early this year. Despite these factors, we believe that Björn Borg delivered a stable third quarter, although it was somewhat below our expectations in terms of sales. The valuation of P/E 17x and EV/EBIT 13x for 2025 looks quite attractive and a combination of dividends and earnings growth should give around 10% total shareholder return. 

Björn Borg

61.01SEK15.11.2024, 18.00
67SEKTarget price
Accumulate
Changed from:Accumulate
Recommendation updated:18.11.2024

Björn Borg operates in the fashion industry and focuses on the design, manufacture and distribution of sportswear and underwear. The company's products are aimed at private individuals looking for comfortable and stylish clothing. The business is global with a main presence in the Nordic region and Europe. Björn Borg was founded in 1984 and is headquartered in Solna.

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Key Estimate Figures18.11.2024

202324e25e
Revenue872.3971.31,053.9
growth-%4.4 %11.4 %8.5 %
EBIT (adj.)100.6105.2119.9
EBIT-% (adj.)11.5 %10.8 %11.4 %
EPS (adj.)3.023.043.65
Dividend3.003.003.40
Dividend %6.6 %5.1 %5.7 %
P/E (adj.)15.019.516.2
EV/EBITDA8.711.410.3
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