Björn Borg AB (publ)

Good morning, and it's Friday again, and I'm happy that you have joined us for our Q4 presentation, closing then 2025. And decided to squeeze in three victories in one sentence. I think that's going to wrap up pretty good. feeling of our last quarter so I think first of course you know we closed the year with a very strong momentum in own ecom so growing 24 percent in the quarter taking market shares so that's reassuring and the second one of course sports apparel continues to drive growth very very important part of our you know key strategic initiative to move the entire brand then into becoming a sports fashion brand and i think last of course it's not easy to navigate in the world these days but to improve them operating profit with you know 28 in the quarter i think i'm just showcase uh the strength of the business model that we're operating so um Overall, we're leading Q4 that we are satisfied with. Of course, we want to grow even more, and we'll dig a bit deeper into some of the things that we want to do even better going forward. But to wrap it up then, net sales, 238. So, currency neutral, we're growing about 5%. The world, however, is not currency neutral, so the real growth is 1.5%, so lower than what we would want, of course. Close in the year still on a growth, yes, close of 6%. Currency neutral is 8%, so a bit below versus our financial targets. Looking at gross profit, however, that's going in the right direction. And, of course, here we have some help with the currency, but also, of course, the channel mix. And we can still see that we have a very strong pricing power. And, of course, that is leading into then a very, very strong operating profit in the last quarter. And also, of course, closing then the full year at 10.5%, so well above our financial target. So, overall, you know, a good year, 2025, and a strong finish of the year with a strong quarter four. Background and platform, of course, is the same. We're here to inspire and to build a brand that wants you to move, not to become an athlete or to win any Olympic gold medals, even though we love that the Swedish guys and girls are doing that too. But actually, we think that this journey is about inspiring you to move so you can become better at something else. And we see that that's more relevant than ever. So a strong why is really resonating with the world around us right now, which is super strong, of course. The financial objectives remains the same. And of course, the business strategy has been to focus on online, retail, marketplace and own e-com. That is going really, really well. Grow sales, of course, and predominantly throughout our sports apparel push. But also now with bags and footwear. That is, of course, what comes to be our future growth initiatives, even though neither one of those actually are growing last year, which, of course, is a bit of a disappointment. But here we need to do a lot better. The focus in terms of countries is still Europe. And looking at the brand, of course, that's our biggest and most important asset. And we can see, and here we only have one German number, but one thing that we saw in Q4 and actually for the full year last year is that the brand is getting stronger in Germany towards German consumers. And yes, of course, at a very low base. And we also know, of course, that there's some challenges in Germany in terms of their economical output. But we see a very strong momentum. So we're gaining growth also in terms of sales towards German consumers. And also the brand is getting stronger and getting some traction here. Sweden and Holland is continuing to develop good in terms of our brand. And here we have consideration. So this is full year 2025 numbers. And of course, what we ask the consumer here is a list of a lot of different brands, of which here do you consider buying? And we have a very high ratio at 53%, which of course tells us again that the biggest opportunity for us here is really to be visible when the consumer is out there shopping, because then they are very likely to pick us before any of our competitors. So the brand is going in the right direction, which is reassuring. Looking at the full year numbers, so as I think I wrote in my CEO comment with the profit and the sales in Q4 that we did in 2025, that's actually the best Q4 that we have done since I started now 11 years ago. So a very strong finish of the year. And looking at the full year, we're growing. The growth is driven from e-com and sports apparel. Footwear and bags are lagging a bit behind, so here we need to increase our focus. But overall, a fairly strong year is behind us. And looking at some of the categories, and here we have only Q4. Loungewear is doing really, really well. Sports apparel, as I said, is continuing to grow. And socks is also gaining momentum. And it's actually now almost twice the size of women's underwear. So we see that these smaller categories require not so much effort, but we can still drive a lot of growth in a very profitable way. Socks also, as opposed to footwear and apparel, has a very low return rate on e-commerce, for one example. So a very profitable category. Looking at the country, so it's a bit of a mixed picture here. Full year, all our countries are growing except Germany and Belgium. Looking at the quarter, we see super strong growth in Germany. So a good, you know, rebounds of last year in Germany. Sweden is doing really, really well. Denmark is having a strong momentum. And Finland is also doing really, really good. And they had also an exceptionally good finish of last year. The distributors are, you know, continuing to struggle even though a few of the smaller ones are growing. But that's still low numbers. And, of course, here we're not focusing too much on those. We still, of course, want them to grow. But the plan really is to work even more with wholesale and, of course, continue our D2C push with e-comm at the forefront. And with that, of course, wholesale is growing in the quarter, plus 2%. We also have a full year growth on a wholesale. Ecom 24%, so a very, very strong finish of the year. Also full year numbers is 19.7%, so just shy of 20%. So here we're taking market shares and doing an exceptionally good work. And actually also on Ecom, we can see that footwear is growing almost 20%. So there are consumers out there that wants to buy our footwear. We just need to be better at also managing our wholesale so they also can grow and benefit from the need that consumers really feel around our footwear collection. Own retail is declining. And of course, that's because we're closing down stores. I think now when we come into 2026, we have a store base that we are, you know, fine with. It's an outlet store focus. And from here, most likely we'll rather add stores than actually reduce store. But with that said, also the comparable stores are declining 2%. Distributors, as I said, a poor quarter and a fairly poor development. Not so much focus, but with that said, of course, we still would want them to grow, even though, of course, our strategy is to focus on our own channels. And I think with that said, there's no one else better than Jens to run you through some of the other lines in our P&L, which is also actually showcasing a very, very strong quarter. So, Jens, why don't you fire away? Thanks a lot, Henrik. Thank you.

Thank you. And I wish you all a happy Friday as well. And I'm wishing the best of success to the male Swedish hockey team playing against Finland in just a couple of hours. But leaving that aside and focusing on this Q4, the gross margin was a jump up. with 0.7 percentage points compared to Q4 last year. Here we have been helped with some favorable FX development, putting the gross margin in the right direction. But still, it's a good sign for closing 2025. In terms of profitability, as Henrik already mentioned, the operating profit is up 28% in the quarter to 22 million almost compared to 17 last year. So super strong close in terms of profitability for 2025. If we look at a simplified P&L for the quarter as well as full year 2025, sales was up 5% currency neutral and for the full year 8% to just above 1 billion Swedish crowns. The gross margin just mentioned up 0.7 points for the quarter and almost the same but the opposite direction for the full year. So closing close to 52%. The operating expenses in the quarter is a bit favorable and then more or less a bit unfavorable towards the full year. However, this is planned with mainly increased marketing investments driving the OPEX growth for the full year. EBIT, as I mentioned, 28%, super strong close of 2025. And then plus 9% for the full year to 112 million, bringing the EBIT margin to 10.7%. So very pleased with the profitability for 2025 and especially the last quarter of the year. If we look at the balance sheet items for a second, we can see the solidity or the equity through assets is strong. It's about 50% increasing versus last year. The net depth, on the other hand, is increasing slightly. to 50 million, still fairly low compared to previous years. But compared to last year, there's an increase that's quite substantial. This is driven by two things mainly. First of all, the own e-commerce is taking a bigger share of our sales, which is very positive. But on the other hand, it requires some larger inventory and hence bigger payments. And we also have the footwear integration that is playing a bigger part this year compared to previous year. The working capital is increasing for mainly the same reason as I just mentioned, mainly coming from the bigger inventory while e-comm is taking a bigger share. So all in all, positive signs. having a working capital in relation to sales of just about 20%. That's where we want to be, around 20%. So quite good KPIs on the balance sheet. There's lots of stuff to look at, obviously, but these are the main ones that we focus on. And quite pleased to see where we are. So with that, I think we're coming towards the close of this presentation. And Henrik, why don't you...

Yes, I'm back again. Let's just wrap it up then. So we have a number of different highlights in the quarter and also when we look at the full year 2025. So obviously, the first one is that we see that the brand is continuing to get stronger and stronger. We see a very, very strong momentum in Germany where the brand is growing a lot on a small base, but that's a key strength looking back. Secondly, of course, e-comm is continuing to develop, so close to 20% full year, finishing off the year at 24% growth. very, very strong. We know then that the consumer really wants to buy our stuff, and even some of our weaker cadres is actually performing fairly well on e-com, so Footwear is growing 20 as one example. And then last, of course, we're doing really, really well on sports apparel. So that's really, I think, the key highlight. The brand is getting stronger, e-com is doing really, really well, sports apparel is continuing to grow. The stuff, of course, that needs to be better is Footwear and bags, so Footwear were declining last year overall. That's not part of the plan. And of course, here we need to continue to build. We need to be a bit patient, make even better products and make sure they find the right home where consumers want to pick the products up so we can get back to growth mode when it comes to the footwear category. That's a major challenge that we are currently having. So I think that's that in terms of closing 2025 and also our last quarter of the year. So with that said, I know that Hjalmar for sure has a lot of questions that he wants to shoot off as well. So why don't you...