Björn Borg reports record sales and executive leadership transition

Swedish sports and apparel brand Björn Borg AB has published its interim report for July to September 2026, delivering record quarterly sales and operating profit alongside the announcement of a chief executive officer transition.

Financial performance highlights

During the third quarter of 2026, Swedish apparel group Björn Borg increased group net sales by 2.8 percent to 308.23 million Swedish kronor (31.08 million dollars), up from 299.79 million Swedish kronor in the same period of 2025. Adjusted for foreign exchange fluctuations, net sales expanded by 2.5 percent. Gross profit margin improved to 54.6 percent, compared to 52.5 percent in the prior-year period.

Operating profit grew 17.8 percent to reach 53.16 million Swedish kronor, compared to 45.12 million Swedish kronor recorded in the third quarter of 2025. Profit after tax expanded 14.6 percent to 42.26 million Swedish kronor, while earnings per share rose to 1.68 Swedish kronor.

For the first nine months ending September 30, 2026, group net sales totaled 807.25 million Swedish kronor, compared to 805.73 million Swedish kronor in 2025. Operating profit for the nine-month period increased 24.3 percent to 111.78 million Swedish kronor.

Channel and market developments

Direct-to-consumer digital channels drove quarterly expansion; sales via own e-commerce increased 16.1 percent to 60.05 million Swedish kronor. Combined sales through own e-commerce and third-party e-tailers climbed 17.3 percent to 143 million Swedish kronor. Wholesale revenue rose 3 percent to 223.82 million Swedish kronor.

Sales in company-owned physical retail locations decreased 13 percent to 20.93 million Swedish kronor, impacted by store closures; comparable store sales declined by 3 percent.

Across geographic regions, market performance varied. Sweden, the group's largest market, expanded 6 percent to 119.75 million Swedish kronor, Germany demonstrated significant growth, increasing 34 percent to 30.99 million Swedish kronor, Denmark grew 31 percent to 16.81 million Swedish kronor, while Belgium rose 21 percent to 10.16 million Swedish kronor. Netherlands remained stable at 62.57 million Swedish kronor, whereas smaller markets declined 25 percent to 29.26 million Swedish kronor.

Across product categories, underwear sales grew 5 percent to 158.47 million Swedish kronor, sports apparel expanded 6 percent to 90.77 million Swedish kronor, footwear declined 9 percent to 26.99 million Swedish kronor, while bags fell 47 percent to 8.7 million Swedish kronor. Other products, including swimwear and socks, increased 43 percent to 29.42 million Swedish kronor.

Leadership change

In a separate announcement published October 22, 2026, chief executive officer Henrik Bunge communicated his decision to step down after twelve years in the role. Bunge will remain as chief executive officer through March 31, 2027, and subsequently serve as a senior adviser.

"Leading Björn Borg for twelve years has been a privilege," stated Bunge. "Together, we have transformed an underwear brand into a sports brand with training at its core. Now is the right time to hand over to someone who can take Björn Borg forward, and I look forward to supporting a smooth transition," said Bunge.

The board of directors, led by chair Johanna Schottenius, has formally initiated executive search proceedings to identify a successor.

"Henrik has developed Björn Borg with great drive and clear leadership, strengthening the company's position as a sports brand," stated Schottenius. "His focus on profitable growth, corporate culture and employee development has been instrumental in our success". Schottenius added that the focus of the board remains on finding a successor to build upon the brand's position of strength.