Bjorn Borg AB: From Tennis Legacy to E-commerce and Sports Fashion Leadership

Strong Digital Growth and Market Evolution

Despite facing challenges with declining retail sales and margin pressures, Bjorn Borg AB has demonstrated impressive performance in its digital operations, reporting a 26% growth in its e-commerce segment.

The company has achieved remarkable results in Q2 2025, with sports apparel sales increasing by 45% and overall top-line growth of 6%. When adjusted for currency effects, sales exceeded 10%, driven primarily by wholesale and e-commerce channels.

Market Position and Strategic Focus

The company maintains a strong competitive position, ranking third in consumer consideration in key markets, trailing only behind global giants Nike and Adidas. This success is attributed to three key factors: the global shift to e-commerce, the expanding sports apparel market, and the untapped potential of the German market.

Germany represents a crucial frontier in Bjorn Borg’s expansion strategy, with the CEO describing it as a market “as large as all other markets combined.” Despite challenges with distribution partner Salando, the company has implemented a focused approach starting in Hamburg, where e-commerce sales have doubled. Overall sales to German consumers through their own e-commerce channel have increased by nearly 30% year-to-date.

Financial Performance and Future Outlook

The company’s financial discipline remains strong, maintaining a healthy equity/assets ratio of 35% and an impressive return on equity of 23%. Bjorn Borg has set clear long-term objectives, including 10% annual sales growth, a 10% operating margin, and a 50% dividend payout ratio.

The strategic shift towards e-commerce is reshaping the company’s margin dynamics. By reducing dependence on wholesale partners and optimizing logistics, Bjorn Borg has maintained a gross margin of 51.68%, providing protection against inflationary pressures. The company’s investment in personalized digital experiences and omnichannel integration has strengthened customer retention.