Björn Borg AB (publ)

Good morning and welcome to our Q3 presentation. I'm happy to be here. The weather is not fantastic, but our numbers are. So let's dig into those immediately. So if I sort of sum it up, it's clear that when we have Q3 2026 behind us, it's the best quarter that we have ever done. Looking at the top line business, we're bigger than ever. With that said, of course, we're still not happy with only growing 3%. Our plans are to grow a lot more. And hopefully, of course, we will continue and improve that even further. But nevertheless, the best quarter when it comes to sales, we had a very, very strong margin, as we will talk about a bit later. And of course, finishing off with a record profit. So almost, almost 17% in Q3, which is fantastic news. Just above 53 million, so that's very, very good. And a massive improvement versus last year. But again, we'll dig into the details and explain a bit why it looks so good. And first, of course, as I said, net sale 308. So that's up 2.8% versus last year. A bit below our plans and our ambitions. So here, of course, we can do a lot better. There are some highlights, things that are going really, really well. And a few things that we simply need to focus even more on. The gross profit, very, very strong. And here, of course, a combination of a number of different things. One is the channel splits, as we'll talk about in a while. Ecom is doing fantastic. That's high gross margin. We also see underwear as growing 5%. And, of course, that's our biggest category. We see sports apparel slowing down a bit, even though we see strong growth there. Thank you very much. record profit of 53% so good improvement versus last year and again you know just shy of 17% in profit margin for the quarter which is very very good and something that we are proud of of course so with that said our plan is clear and of course this I've been talking about since 2014 and are repeating it over and over and over again We have a very clear mission, and that is to inspire you and everyone else that you can become more. And that the idea behind training is not to win gold medals or become good in a sport. Training is simply much too important for that. We believe that training is the key enabler for you to become better at whatever it is that you want to become better at. We'll see you next time. And we can conclude that we are delivering quarter after quarter on our profit ambitions. However, you know, sales are not performing according to our ambitions. Of course, here we simply need to speed up. The strategy has been set and it's clear we want to focus on online business. We want to focus on sports apparel and we are digging where we stand. So it's about growing where we already exist and adding Germany as our number one growth market. If we then look into the development over the years, so 308, that's a 3% versus last year's quarter. So on a steady progression, if we wrap up all the quarters, we are just behind last year. So at least we're catching up a bit versus our Q2 result. But again, if there's something that is... Porn in the quarter is the sales development. And then of course, there's a lot of other things that are really, really, really good. Looking at our categories, I think the main highlight is definitely underwear. So here we really see a strong rebound. So we're growing at 5% in the quarter, which I think is very, very strong. Sports apparel is also growing. However, slowing down a bit, And of course now the apparel collection and the apparel business is very, very big. So here we simply need to take more steps forward to continue the growth. Our ambition for sports apparel is to have at least double-digit growth. Footwear is still not delivering according to our plan. So the team is in place. The products are looking much, much better. We see growth on our own e-com. We see growth in Sweden. We see that the Nordic markets are really, really recovering, but we still are having massive challenges in both Netherlands and in Belgium. And of course, we need to turn all those things around to see growth overall. But very clearly, looking ahead, where the biggest potential for the brand is, is to get the footwear going. That, of course, will be the key driver in terms of us delivering on our double-digit sales growth. Socks and some of the smaller caddies are doing really, really well. So socks is up 48%. Also swimwear has been developing fantastic. And of course, that's reassuring. But again, the main highlight, I think, from the quarter is apparel growing, underwear, strong performance, footwear, still a challenge. And with that said, let me have then Jens dig a bit into the markets and of course, also our balance sheet. So with that said, Jens, why don't you fire away?

Great. Thanks a lot, Henrik. And from me as well, welcome to this Friday morning. If we continue this quite strong quarter and looking into the markets, I'm very pleased to see that all our own subsidiaries are growing in this quarter with super strong growth in Germany and also in Denmark that continues with a strong momentum. In terms of the distributors, I can see that our biggest one in Norway is bouncing back and is growing with 5%. Very pleased to see that as well. If we look at the channels that we measure upon, we can see that the wholesale is on a growth path as well. But here is the online players mainly that is growing with 18% in the quarter. So online players mainly only selling their wholesale stuff online then. In terms of EA-owned e-commerce, very strong quarter with plus 16%, as you heard before. Very pleased to see that as well. However, our owned retail is continuing to decline, minus 13% in the quarter overall. However, if you look at the comparable stores, meaning stores that existed last quarter, last year as well, we see a decline of 3%. distributors are holding flat, while as I said earlier, Norway, the biggest one, is growing with 5%. Looking at the margin, you heard slightly before from Henrik, so it's growing 2.1% each point versus last year, and that's made out of a lot of stuff, obviously. The channel mix being one that is a main driver for the growth here, but also positive FX development is helping up, even though we see a slight change in this area at the moment. In terms of profitability, 18% up versus last year to 53 million. Super strong EBIT. Very, very happy with that. We can see that we have something that is working for us at the moment. If we simplify this into a P&L, we can see sales 308 plus 3% versus last year. Sales record in a quarter in the company history. Gross margin, as I said, 54.6, 2% each point up. Operating expenses more or less where we expect them to be, and then profitability of 53 million, 18% up versus last year. with a margin then of 17.2%. Very solid and very strong P&L for the quarter and I'm really happy to see that we can deliver this. In terms of the balance sheet then so more or less all KPIs are on good levels and happy to see that the net debt is decreasing with 38 million to just shy of 100. The solidity is strong even though it's dropping two percentage points to just below 50%. And then the working capital or the core working capital is declining as that's good where the inventory level mainly is really stable. So good KPIs on the balance sheet as well. And yeah, with that, I think we've been through the main items on this and I leave it for Henrik to close this presentation.

Yes, yes. Thank you, Jens. Sure, thanks. Um, and, um, uh, very clearly, of course, um, you know, looking at the, uh, the quarter, it's the best quarter that we have seen so far. Uh, so very, very strong, uh, underwear him performance of growing 5%. That's one of the highlights. The second one, of course, only come continue to grow, you know, plus 16 versus last year. We see also that the sports apparel collection is working really, really good. Also, footwear is growing in e-commerce. So we see that the brand is getting stronger and stronger. We are winning consumer. We are taking market shares. So I think that's very reassuring. And of course, last, it's a record profit. The quarter is a record profit. Year-to-date is a record profit. And again, close in the quarter, above 17% in profit margin is just very, very strong. Borg ABlvania Borg ABlvania Borg ABlvania I plan to do another one and that is to close this year hopefully with records and on a very good note that will be my 50th quarter report and at one point I've simply felt that there is someone else that can do this better so I'm happy to you know hand over this to a new CEO And of course, who that is will be determined in the future. I will still be around to, again, close this quarter, also close Q4, and close Q1 next year. So that's the plan. Looking back, of course, I've been a shareholder, yes, as you, and we have about 600% increase since I joined. I think that's... Well, I think that's fantastic. Of course, looking back, on one hand, creating shareholder value has been important, but I think what I would remember and take with me is really train to live and the whole idea behind the thought of building a strong brand that really have a meaningful message and a message that is really corresponding well with end consumers out there. And I can clearly conclude that one of the main highlights and probably my biggest learning is that in order to move something, so again, this was a colorful underwear brand back in the days, and we really moved the entire brand into a completely new arena. The only ingredients you really need to do that is to have faith and not to give up. There were a number of occasions throughout this journey ABBY BORG ABBY BORG ABBY The fruits of all that hard work in our sports apparel growth and our ability to really reposition the entire brand. So, of course, that makes me super happy. But again, this is not my last quarter. You will see me again closing Q4. And again, I will close Q1 as well. And I'll be around to support the brand, given, of course, that I spent most of my working career here. And it's been an incredible journey. So I'm very, very grateful and thankful for that. JALMAR FIREAWAY