Sweden's apparel maker Bjorn Borg Q2 profit more than doubles on e-commerce growth
Sweden's apparel maker Bjorn Borg Q2 profit more than doubles on e-commerce growth
Overview
Sweden apparel maker's Q2 net sales fell 12%, operating profit rose 11% yr/yr
Q2 net income increased 118% yr/yr, adjusted EPS rose to SEK 0.34
Gross margin improved to 56.2% from 50.6% in Q2
Outlook (Long-term financial targets)
Annual sales growth expected to exceed 10%, driven mainly by Sports Apparel and Footwear
Operating margin targeted at above 10% through continued profitability focus
Dividend payout to remain at at least 50% of net profit after tax
Equity ratio expected to stay above 35%, supporting a strong financial position
Result Drivers
E-COMMERCE GROWTH - Own e-commerce sales rose 16.5% yr/yr in Q2, partially offsetting overall sales decline
GROSS MARGIN IMPROVEMENT - Gross profit margin increased to 56.2% from 50.6% in Q2, supporting higher profitability
Company press release: ID:nMFN5HW8hG
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | SEK 198.40 mln | SEK 238 mln (2 Analysts) |
Q2 Adjusted EPS |
| SEK 0.34 |
|
Q2 Net Income |
| SEK 8.60 mln |
|
Q2 Gross Margin |
| 56.20% |
|
Q2 EBIT |
| SEK 11.80 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Bjorn Borg AB is SEK70.50, about 6.7% above its August 13 closing price of SEK66.10
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Aug 11 - Sweden's RVRC Q4 sales rise, gross margin improves
Aug 13 - Finland's Marimekko Q2 revenue misses estimates on weak domestic sales, costs hit profit
Aug 13 - Luxembourg's Global Fashion Group Q2 revenue falls on lower order volumes
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)