Björn Borg AB (publ)

Good morning, guys, and welcome to our Q2 presentation for 2026. So something this quarter comes with a bit of mixed feelings. If we start with the good things, so on one hand, of course, we see a very strong own e-comm growth. Almost all carriers within e-comm is doing really, really well. Even footwear is growing. It's increasing profitability, very strong gross margins. So that's clearly the highlight of the quarter. However, of course, when we look into the overall sales development, that's a disappointment. So we're behind last year, which means that we come from 25 consecutive quarter with growth. That stops right now. And of course, that is a big disappointment and something that we're Absolutely not happy with. So sales is declining. It's related to our wholesale customers coming into the air with a bit of a poor order book. Also, of course, related to early deliveries. But even if we look at the half-year numbers, we're slightly behind last year. So here we simply need to do a lot better going forward. However, of course, looking at the gross profit, that's another victory. So we're trading in the right direction. It's a mix of, what, predominantly three different things. On one hand, reduced discounts. We also see, of course, still strong currency effects that is having a positive impact, even though it's slowing down a bit. And also the channel mix. So, of course, with Ecom doing so well, That, of course, means it takes a bigger share of the business. And with OwnEcom, we're doing between 76% and 77% gross margin. So, of course, that's helping our gross margin increase, which is very, very good. Operating profit. So, of course, despite then a negative sales development, we're improving our profit. And actually looking at first half year, We've never made more money in the history of this company. So, of course, that's good. But I think at least, you know, the key message with Q2 is we're not happy with the sales performance. We need to do better. That's very clearly. Looking at a long-term plan, of course, we're here, you know, not for the quarters, but for the long run. I think we're on to something very, very strong. We believe that there's a strong resonation with the whole idea of inspiring people to move more. We feel that people are training more and more. And despite, of course, the world being in a very challenging place, people spend more time investing into themselves. And we believe that there is a very strong spot or position for a brand like Bjorn Borg to continue to inspire people to work out, to activate themselves as a way of becoming stronger in whatever you want to be stronger at. This slide is an illustration of what we've done in Q2. And I think we haven't talked so much about that, but yesterday we had a long AI workshop, just reviewing all the projects that we have been launching and the outcome of those projects. And on one hand, we can see that AI is making us much more efficient and effective. One example we talked about yesterday is when it comes down to writing all the text around our products. We now, of course, do that through AI, saving us somewhere between 600,000 and 700,000 SEK a year. Also, of course, it saves a lot of time and it makes also the quality much, much better. But on the other hand, we believe that when it comes to building the brand, In a world where almost everything is fake, we need to continue to be real. So activating the brand with real people out there I think is crucial for us. And we've done hundreds of activations during Q2. ASKARI ASKARI ASKARI Board meeting, closing Q2. I just looked outside the window at Frösundavik and there I saw 70, 75 people that were joining our running club. So I think that's another example of reaching out and building a strong connection with end consumers. And we need to continue doing that. I think we're doing that really, really well. And also, of course, that's partly why our own e-commerce is going so well. It's really resonating well with what we do with end consumers out there. So that's reassuring. And of course, we need to continue doing that. Looking at the sales development, and again, of course, Q2 is a disappointment. Partly, of course, we delivered orders earlier, but also when you look at the first half year, we're slightly behind last year's number. So it's a poor sales development. And again, the highlight is really own e-comm. It's only related to wholesale and a couple of big customers. So here we simply need to work more and harder. Looking at the categories, well, of course, wholesale declining a bit means that also most of the categories are declining but if you dig a bit deeper and you try to look for victories and see what is actually working we can conclude on one hand that training so the stuff we do for those that go to the gym is going really really well both for you know adults but also for kids so we see that our junior collection is developing fantastic growing 53% versus last year footwear is declining and of course that's a major focus so we need to change that trend The highlights with footwear is that in e-com we're growing, Sweden is growing. However, of course, we still see big drops in Netherlands and in Belgium. So the work here continues. And I've been asked a couple of times, you know, how long will you do this? So just to remind you all, footwear, even though, of course, we're declining in turnover, it's still profitable. We're making money here. The ambition, of course, is to turn this into a 500 or 600 million category. And currently, we're closer to 70, 80 million, rolling 12. And of course, we want the 500 to happen quick. It's going to take a bit of time, but we will continue to focus on footwear. We believe that the brand is strong. The brand is able to have multiple different categories of which footwear should be one. Bags is doing okay, growing in the quarter, and our swim collection has been doing good. Of course, partly thanks to an exceptionally really good weather, sometimes a bit too warm, of course, during Q2. So overall, of course, a few highlights and, of course, other things that are not working according to plan, so simply more work to be done. When we look at the countries, of course, with Holesale declining. Well, we see that then in all of the markets. Finland is holding on really, really well. Norway is also rebouncing a bit. And then, of course, looking at the channels then. So, of course, wholesale, as we said, is declining. Partly due to timing, but also partly due to a bit of a lower order book. Ecom is doing very, very well, so growing 17% in the quarter. Profit is increasing. Profit ratio is increasing. So, of course, there's a lot of highlights with Ecom. And, of course, that's the channel where we're closest to the consumer, so that's super good. Retail is struggling as well. Comp stores is declining 5%. And we can conclude that the traffic is really dropping during the summer when the weather is what it is. Distributors are doing okay, mostly thanks to Norway. But again, of course, our focus channels is wholesale and e-com. E-com is working good. Wholesale is having a weak quarter, and here we simply can do better. We are here to grow. Thanks a lot, Henrik.

Well good morning to you all and yeah in a world that sometimes feel you don't know really what's real or what's not it's good to be back from the summer at least to find your colleagues that are certainly real that makes me filled with energy to continue this journey and develop this company. Clearly, as you heard, the Q2 was a disappointment in terms of sales. There are some highlights, however. Looking at the gross margin, it's improving versus last year. You can really split that into three parts if you want for the Q2. It's portless, you heard from Henrik. Our own e-commerce is growing with a high gross margin that takes a bigger share of the total, meaning that the share of the segments or the channels is improving the margins. Otherwise, we have a favorable FX development in the quarter that helps the margin as well, and also product mix that is going in the right direction. So that's all combined helping to a very good gross margin in the Q2. So that's one highlight. The operating profit as well is improving 11% versus last year. So that's good in a quarter where, as you already heard now, we're losing or dropping sales. So quite pleased with the fact that, you know, we can drive a profitable company here despite the sales is dropping. Clearly being helped by favorable FX, but also the channel mix, as you heard before, is helping the profitability. So that's two good things in an otherwise slightly disappointing quarter. If we summarize all this in a simplified P&L, you already heard sales is dropping 12%. However, the gross margin, as I just mentioned, is up 5.6 points. The operating expenses is more or less where we want them to be. So we have good control on that. And the EBIT margin, as I mentioned, up 11%. So that's... Overall, disappointing on sales, but in other places, a good P&L, I should say. In terms of the equity or the solidity, quite stable, dropping slightly, 0.5 points versus last year, but still on high levels. The net depth is decreasing, which is really good considering everything that's happening. So I'm very pleased with quite a big drop in the net depth. Our working capital is really, really stable. So at least when you compare it to the gross sales rolling 12 months, flat versus last year. So around 20%, 21%, that's where we want it to be, obviously focusing on the right things. So that was a few highlights from the bottom lines. With that, Henrik, why don't you close this one?

Yes, yes, yes. Thank you, Jens. And again, of course, if we should then at least close the quarter with some things to be proud over. We just launched Golf. That is working really, really well with very, very strong sell-through numbers. However, of course, still small volumes. But I think it also tells that the brand is ready to launch a new category, new product groups. Secondly, of course, OwnEcom is doing really, really well. So growing 17%. Apparel within OECOM is growing 28%. I think that's something that we're super proud over. And of course, lastly, profitability is increasing. Looking at first half year, we never made more money in the history of this company. So of course, that's also something that we're super proud over. Again, however, of course, it was a weak quarter in terms of sales. We need to grow. We don't grow. And of course, that needs to change very clearly. So I think with that said, thank you for listening in. I'm sure that Hjalmar has tons of good questions as well. So hang on for a few more minutes and let's see where this will take us.