This article first appeared on GuruFocus .
Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bjorn Borg AB ( FRA:6BB ) reported a 24% growth in their e-commerce segment for Q4 2025, indicating strong online sales momentum.
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The company's sports apparel segment continues to drive growth, aligning with their strategic initiative to become a sports fashion brand.
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Operating profit improved by 28% in Q4 2025, showcasing the strength of their business model.
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The brand is gaining traction in Germany, with sales to German consumers up by 20%, despite starting from a low base.
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Gross margin increased by 0.7 percentage points in Q4 2025, aided by favorable foreign exchange developments.
Negative Points
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Overall real growth was only 1.5% for Q4 2025, which is below the company's financial targets.
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Footwear and bags segments did not grow last year, indicating a need for increased focus and improvement.
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Retail sales are declining due to store closures, with comparable store sales down by 2%.
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The company's net debt increased to 50 million, driven by larger inventory requirements for e-commerce.
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The footwear distribution has been struggling, with a decline of 9 to 10% in specialist distribution.
Q & A Highlights
Q: You mentioned Germany and the strength of the brand in this market. When do you feel we can evaluate Germany from a sales perspective? A: Unidentified_1: We can start evaluating now, but it will take time to build a sustainable platform. Sales towards German consumers were up 20% last year, indicating growth and market share gains, but from a low base. We are committed to the German market despite its challenges.
Q: Which categories do you think will be most successful in Germany? A: Unidentified_1: Sports apparel is currently growing and will be the key category to drive growth in Germany. We aim to build a consistent brand across all markets, focusing initially on sports apparel, while also promoting socks, footwear, and underwear.
Q: Are you becoming more sensitive to seasonal patterns in the direct-to-consumer segment? A: Unidentified_1: We don't see a seasonal connection tied to weather for e-commerce. While physical retail is weather-dependent, e-commerce remains unaffected by seasonal changes, as evidenced by our strong Q4 performance despite a mild winter.
Q: Could you elaborate on the challenges faced in the shoes and bags segment in 2025? A: Unidentified_1: The focus is on making better products and shifting distribution points. While e-commerce is growing, wholesale distribution has struggled. We need to improve product offerings and distribution to drive growth, especially in markets like Holland and Belgium.
Q: Are you satisfied with the pricing level and campaign participation in 2025? A: Unidentified_1: The year was more off-price driven due to market conditions. We were more price aggressive, but the plan is to reduce discounts and sell more products at full price, maintaining our pricing power.
Q: What is your perception of the current Swedish consumer? A: Unidentified_1: Despite rational reasons for increased spending, consumer sentiment remains hesitant. There's a shift from physical stores to online, but overall consumption hasn't picked up as expected. We hope for improvement, especially with upcoming events like Valentine's Day.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
