Bjorn Borg sells branded underwear, sports apparel and footwear through wholesale (~70%), a growing own e-commerce channel (~+20%, the margin engine), loss-making own stores, distributors and licensing. FY2025 net sales +5.5% (+7.8% FX-neutral), gross margin ~52%, EBIT margin ~10.7%, ROIC ~19.5% and economic profit +SEK ~43m — value-creative but a narrow ~9.5pp spread over a 10% WACC.
It is a brand-improvement story (e-commerce + product), but quality is capped by competitive apparel dynamics, fashion/seasonality risk, wholesale dependence, loss-making own stores and a modestly net-debt balance sheet (SEK ~79m incl leases). Net income is flattered by ~SEK 6m of non-operating FX. At ~mid-teens EV/EBIT and a ~4.8% dividend yield it is fairly valued.
At ~14.8x EV/EBIT (the cleaner anchor; ~17x P/E is FX-flattered) with a ~4.8% yield, Bjorn Borg is fairly valued for a wholesale-heavy apparel brand.
Base SEK 62 (fair; dividend is the return); bull SEK 78 if e-commerce + brand momentum lift margins; bear SEK 48 on an apparel/consumer downturn or wholesale destocking.
At today’s enterprise value the constant-ROIC reverse-DCF maxes out: even at its sustainable-growth ceiling (~18.5%, limited by ROIC 20% ≈ WACC 10%) it cannot reach the current EV. No-growth value is SEK 36/share (58% of price); the market prices in growth and/or a higher ROIC than booked — richly valued on this lens. Read the sensitivity grid.
| Scenario | 24m target | Impl. g | Upside | Prob. | Driver |
|---|---|---|---|---|---|
| Bull | SEK 78 | ≥19% | +25% | 30% | E-commerce + brand momentum lift margins |
| Base | SEK 62 | ≥19% | -1% | 45% | Fair; dividend is the return |
| Bear | SEK 48 | +11% | -23% | 25% | Apparel/consumer downturn or wholesale destocking |
| Prob-weighted | SEK 63 | — | +1% | 100% | Scenario-weighted expected value |
| WACC \ g | 0% | 3% | 5% | 8% | 10% | 15% |
|---|---|---|---|---|---|---|
| 8.50% | 46 | 50 | 53 | 58 | 62 | 72 |
| 9.25% | 40 | 44 | 47 | 51 | 54 | 62 |
| 10.00% (base) | 36 | 39 | 41 | 45 | 47 | 54 |
| 10.75% | 33 | 35 | 37 | 40 | 42 | 47 |
| 11.50% | 30 | 32 | 34 | 36 | 38 | 42 |
Green = fair value above the current price of SEK 62.40. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.
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Higher-margin own channel +20% — the margin + growth engine.
Product + brand investment supports pricing + sell-through.
~4.8% yield underpins the total return.
Asset-light licensing royalties add high-margin income.
Bjorn Borg is a recognized sports-fashion brand growing its higher-margin e-commerce, value-creative (ROIC ~19.5%) but with a narrow spread, FX-flattered earnings and modest net debt — fairly valued at ~mid-teens EV/EBIT / ~4.8% yield. HOLD; base SEK 62.
Own it for the dividend + brand improvement; the swing factors are e-commerce margin and wholesale demand.
Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.
| Adjustment / figure | Value | Source | Why mttssn treats it this way |
|---|---|---|---|
| Net sales (group, full year) | 1,044 | Consolidated income statement / Note 2 | Net sales full-year 2025 column = 1,043,899 thousand = 1,043.9m (prior year 989,699). +5.5% reported, +7.8% currency-neutral. Note 2 confirms by geography (Sweden 386.8, Netherlands 234.0, Finland 132.5, Germany 100.5) and the channel split. |
| Operating profit (EBIT, full year) | 112 | Consolidated income statement | Operating profit full-year 2025 = 111,516 thousand = 111.5m (prior year 101,845). Used directly as adjusted EBIT (no verified non-recurring add-backs; company reports no adjusted-EBIT bridge). EBIT margin 10.7%. |
| Gross profit / margin | 540 | Consolidated income statement | Net sales 1,043.9 less goods for resale 503.7 (503,665 thousand) = 540.2; gross margin 51.8% on net sales, matching the company's stated 51.8%. |
| Net financial items (full year) | 6.2 | Note 1 (interest income/expense reconciliation) | Interest income and similar credits 13,230 (largely FX gains) less interest expenses and similar charges -6,997 = +6,233 thousand = +6.2m. A swing from -11.4 prior year; sits below EBIT and is NOT included in operating NOPAT. |
| Profit before tax (full year) | 118 | Consolidated income statement | Profit before tax full-year 2025 = 117,749 thousand = 117.7m (EBIT 111.5 + net financial items 6.2). |
| Tax expense (full year) | -25.7 | Consolidated income statement | Tax -25,689 thousand = -25.7m on profit before tax 117.7 = effective rate 21.8%. Statutory 20.6% used for NOPAT per methodology. |
| Profit for the period (net income) | 92.1 | Consolidated income statement | Profit for the period full-year 2025 = 92,060 thousand = 92.1m, all attributable to parent-company shareholders (NCI share of profit = 0). EPS 3.66. |
| Net sales by channel (Wholesale / E-com / Own stores / Distributors / Licensing) | 728 | Note 1 Summary per segment (external revenue) | Full-year 2025 EXTERNAL revenue by segment: Wholesale 728,480 (728.5), Own e-commerce 216,610 (216.6), Own stores 87,462 (87.5), Distributors 38,142 (38.1), Licensing 1,159 (1.2). Segment operating profit: Wholesale 67.1, E-com 40.2, Own stores -5.1 (LOSS), Distributors 8.3, Licensing 1.1. (value field carries the largest channel, Wholesale 728.5.) |
| Inventory | 257 | Consolidated statement of financial position | Inventory at 31 Dec 2025 = 257,237 thousand = 257.2m (prior year 259,487). A principal operating-capital item for this wholesale+retail brand model. |
| Accounts receivable | 133 | Consolidated statement of financial position | Accounts receivable at 31 Dec 2025 = 133,095 thousand = 133.1m (prior year 111,398). Large because ~70% of revenue is wholesale on credit terms; the +21.7 YoY rise drove the working-capital build that depressed operating cash flow. |
| Cash and cash equivalents | 13.5 | Consolidated statement of financial position | Cash and cash equivalents at 31 Dec 2025 = 13,535 thousand = 13.5m (prior year 8,771). Entirely operational (no excess stripped) against SEK 1,043.9 net sales and a 63.5 overdraft; the group is a net borrower. |
| Interest-bearing debt (overdraft + leases) | 92.8 | Consolidated statement of financial position | Current liability to credit institution (overdraft) 63,540 + long-term lease liabilities 14,979 + short-term lease liabilities 14,266 = 92,785 thousand = 92.8m. No bonds. Leases (29.2 total) are INCLUDED because Bjorn Borg operates own stores (lease-dependent retail) plus offices. Ex-lease interest-bearing debt = 63.5 (overdraft only). |
| Total equity (incl. NCI) | 361 | Consolidated balance sheet / Statement of changes in equity | Total equity at 31 Dec 2025 = 361,019 thousand = 361.0m, comprising equity attributable to parent 366,838 (366.8) and a non-controlling-interest deficit of -5,818 (-5.8). Equity ratio 50.2% (vs >=35% policy floor). |
| Number of shares outstanding | 25.148 | Consolidated income statement (share line) | 'Number of shares 25,148,384' for FY2025; no treasury shares held (AGM buyback authorised but not executed at year-end). Confirmed unchanged in Q1 2026. Used for market cap with web-verified price SEK 62.40. EPS check: 92.1 / 25.148 = 3.66 = reported. |
How the mttssn view has evolved — each prior dated note is preserved.