Sports apparel drives Björn Borg's 2025 growth with 24 percent segment increase

Stockholm-based sports fashion group Björn Borg has published its year-end report for 2025, revealing record profitability and sustained sales growth. For the full year, group net sales increased by 5.5 percent to 1,043.9 million Swedish kronor (116.8 million dollars), up from 989.7 million Swedish kronor in 2024. Adjusted for currency effects, annual sales growth reached 7.8 percent.

Operating profit for the 2025 financial year rose by 9.5 percent to 111.5 million Swedish kronor, while profit after tax increased by 26.7 percent to 92.1 million Swedish kronor. Chief executive officer Henrik Bunge noted that the fourth quarter was the company's best in terms of both sales and profitability during his 11-year tenure, with quarterly operating profit surging by 28.5 percent.

Sports apparel drives product performance

The group’s clothing collection was a primary engine for growth throughout the year. Sports apparel product segment grew by 24 percent for the full year, supported by a 31 percent increase in wholesale operations and 30 percent growth in the company's own e-commerce.

Annual sales of the underwear category remained relatively flat, decreasing by 1 percent primarily due to a reduction in the number of physical stores.

Net sales for the company's own e-commerce platforms rose by 19.7 percent for the full year to 216.6 million Swedish kronor.

Footwear and bags sales saw slight full-year declines of 1 percent and 5 percent respectively, prompting management to increase focus and investment in these categories for the coming year.

Market and channel development

Sweden remains the group's largest market, growing by 13 percent over the full year, followed by the Netherlands, which also saw an increase within the wholesale segment. During the fourth quarter, Finland and Germany performed particularly strongly, with growth of 25 percent and 21 percent respectively. Conversely, Belgium and the Norwegian distributor market experienced weaker demand.

The group continued to optimise its retail footprint, ending 2025 with 11 group-owned stores, down from 13 at the end of 2024. This reduction was part of a strategic shift to close unprofitable locations.

Based on the strong results, the board of directors has proposed a dividend of 3.00 Swedish kronor per share, consistent with the previous year and representing 82 percent of net profit. The board has also requested authorisation for a share repurchase programme.

Looking toward 2026, Bunge expressed confidence in the brand's clear direction and its ability to navigate continued geopolitical and macroeconomic uncertainty.