Q2 2026 Bjorn Borg AB Earnings Call

August 14, 2026

Speaker #1: So, presenting this quarter comes with a big ad of mixed feelings. If we start with the good things, so on one hand, of course we see very strong own ecom growth, almost all carriers within ecom is doing really, really well.

Speaker #1: Even Footwear is growing, it's increasing profitability very strong, gross margins, so that's clearly the highlight of the quarter. However, of course, when we look into the overall sales development, that's a disappointment.

Speaker #1: Q2 presentation for 2026. So, presenting this quarter comes with a bit of mixed feelings: if we start with the good things—on one hand, of course, we see very strong own e-com growth. Almost all carriers within e-com are doing really, really well.

Henrik Bunge: Q2 presentation for 2026. Presenting this quarter comes with a bit of mixed feelings. If we start with the good things, on one hand, of course, we see very strong own e-commerce growth. Almost all categories within e-commerce are doing really well. Even footwear is growing. It is increasing profitability, very strong gross margins. That is clearly the highlight of the quarter. However, of course, when we look into the overall sales development, that is a disappointment. We are behind last year, which means that we come from 25 consecutive quarters with growth. That stops right now, and of course, that is a big disappointment and something that we are absolutely not happy with. Sales is declining. It is related to our wholesale customers coming into the year with a bit of a poor order book. Also, of course, related to early deliveries.

Speaker #1: So we're behind last year, which means that we come from 25, you know, consecutive quarter with growth. That stops right now, and of course that is a big disappointment and something that we're absolutely not happy with.

Speaker #1: So sales is declining, it's related to our wholesale customers' coming into the year with a bit of a poor order book. Also, of course, related to early deliveries, but even if we look at the half-year numbers, we're slightly behind last year.

Speaker #1: Even Footwear is growing; it's increasing profitability very strongly, with gross margins, so that's clearly the highlight of the quarter. However, of course, when we look at the overall sales development, that's a disappointment.

Speaker #1: So we're behind last year, which means that we come from 25 consecutive quarters with growth. That stops right now, and of course that is a big disappointment and something that we're absolutely not happy with.

Speaker #1: So, here we simply need to do a lot better going forward. However, of course, looking at the gross profit, that's another victory. So we're trading in the right direction.

Speaker #1: It's a mix of what predominantly three different things. On one hand, reduced discounts, we also see, of course, still strong currency effects that is having a positive impact, even though it's slowing down a bit.

Speaker #1: So, sales are declining. It's related to our wholesale customers coming into the year with a somewhat poor order book. Also, of course, it's related to early deliveries. But even if we look at the half-year numbers, we're slightly behind last year.

Speaker #1: And also the channel mix. So of course, with ecom doing so well, that of course means it takes a bigger share of the business, and with own ecom we're doing, you know, between 7 to 6 and 7 to 7 percent gross margins.

Henrik Bunge: Even if we look at the H1 numbers, we are slightly behind last year. Here we simply need to do a lot better going forward. However, of course, looking at the gross profit, that is another victory. We are creating in the right direction. It is a mix of, predominantly three different things. On one hand, reduced discounts. We also see, of course, still strong currency effects that are having a positive impact, even though it is slowing down a bit. Also the channel mix, of course, with e-commerce doing so well, that of course means it takes a bigger share of the business. With own e-commerce, we are doing between 76% and 77% gross margin. Of course, that is helping our gross margin increase, which is very good. Operating profit, of course, despite then a negative sales development, we are improving our profit.

Speaker #1: So here, we simply need to do a lot better going forward. However, of course, looking at the gross profit, that's another victory. So we're trending in the right direction.

Speaker #1: So of course that's helping our gross margin increase, which is very, very good. Operating profit, so of course despite an unnegative sales development, we're improving our profit.

Speaker #1: It's a mix of, predominantly, three different things. On one hand, reduced discounts; we also see, of course, still strong currency effects that are having a positive impact, even though it's slowing down a bit.

Speaker #1: And actually looking at first half year, we've never made more money in the history of this company. So of course that's good. But I think at least, you know, the key message with Q2 is we're not happy with the sales performance.

Speaker #1: We need to do better. That's very clearly. Looking at a long-term plan, of course we're here, you know, not for the quarters, but for the long run.

Speaker #1: So of course, that's helping our gross margin increase, which is very, very good. Operating profit—so of course, despite a negative sales development, we're improving our profit.

Speaker #1: I think we're onto something very, very strong. We believe that there's a strong resonation with the whole idea of inspiring people to move more, we feel that people are trading more and more, despite of course the world being in a very challenging place.

Speaker #1: And actually, looking at the first half year, we've never made more money in the history of this company, so of course that's good. But I think at least, you know, the key message with Q2 is we're not happy with the sales performance.

Henrik Bunge: Actually looking at H1, we have never made more money in the history of this company. Of course that is good. I think at least, the key message with Q2 is we are not happy with the sales performance. We need to do better. That is very clearly. Looking at a long-term plan, of course, we are here not for the quarters, but for the long run. I think we are onto something very strong, and we believe that there is a strong resonation with the whole idea of inspiring people to move more. We feel that people are training more and more, despite, of course, the world being in a very challenging place. People spend more time investing into themselves.

Speaker #1: People spend more time, you know, investing into themselves. And we believe that there's a very strong spot or position for a brand like Bjorn Borg to continue to inspire people to work out, you know, to activate themselves as a way of becoming stronger in whatever, you know, you want to be stronger at.

Speaker #1: We need to do better. That’s very clear. Looking at a long-term plan, of course, we’re here, you know, not for the quarters, but for the long run.

Speaker #1: I think we're onto something very, very strong. We believe that there's a strong resonance with the whole idea of inspiring people to move more.

Speaker #1: This slide is an illustration of what we've done in Q2, and I think we haven't talked so much about that. But yesterday we had a long AI workshop.

Speaker #1: We feel that people are trading more and more, despite, of course, the world being, you know, a very challenging place. People spend more time, you know, investing in themselves.

Speaker #1: Yes, reviewing other projects that we have been launching, and the outcome of those projects, and on one hand we can see that AI is making us much more efficient and effective.

Speaker #1: And we believe that there's a very strong spot or position for a brand like Björn Borg to continue to inspire people to work out, you know, to activate themselves as a way of becoming stronger in whatever, you know, you want to be stronger at.

Henrik Bunge: We believe that there is a very strong spot or position for a brand like Björn Borg to continue to inspire people to work out, to activate themselves, as a way of becoming stronger in whatever you want to be stronger at. This slide is an illustration of what we have done in Q2, and I think we have not talked so much about that. Yesterday we had a long AI workshop, just reviewing all the projects that we have been launching and the outcome of those projects. On one hand, we can see that AI is making us much more efficient and effective. One example we talked about yesterday is when it comes down to writing all the text around our products. We now of course do that through AI, saving us somewhere between 600,000 and 700,000 SEK a year.

Speaker #1: One example we talked about yesterday is when it comes down to writing all the text around our products. We now, of course, do that through AI, saving us somewhere between 6 and 700,000 fake a year.

Speaker #1: This slide is an illustration of what we've done in Q2, and I think we haven't talked so much about that. But yesterday, we had a long AI workshop.

Speaker #1: Also, of course, spends saves a lot of time, and it makes also the quality much, much better. But on the other hand, we believe that when it comes to building the brand, in a world where almost everything is fake, we need to continue to be real.

Speaker #1: Yes, reviewing other projects that we have been launching, and the outcomes of those projects, on one hand we can see that AI is making us much more efficient and effective.

Speaker #1: So activating the brand with real people out there, I think is crucial for us. And we've done, you know, hundreds of activations during Q2.

Speaker #1: One example we talked about yesterday is when it comes to writing all the text around our products. We now, of course, do that through AI, saving us somewhere between 600,000 and 700,000 SEK a year.

Speaker #1: One was yesterday, Asgari is across the street here, you know, with a paddle event. We've activating ourselves in all the major cities with a very, very strong impact.

Speaker #1: Also, of course, it saves a lot of time, and it also makes the quality much, much better. But on the other hand, we believe that when it comes to building the brand, in a world where almost everything is fake, we need to continue to be real.

Henrik Bunge: Also, of course, saves a lot of time, and it makes the quality much better. But on the other hand, we believe that when it comes to building the brand, in a world where almost everything is fake, we need to continue to be real. Activating the brand with real people out there, I think is crucial for us. We have done hundreds of activations during Q2. One was yesterday at Askersund, across the street here, with a paddle event. We are activating ourselves in all the major cities with a very strong impact. I think that is the way to really build this brand. Real stories with real people. Only yesterday when we had our board meeting, closing Q2, I just looked outside the window at the first Norvik, and there I saw 70, 75 people that were joining our running club.

Speaker #1: And I think that's the way to really build this brand. Real stories with real people, and only yesterday when we had our board meeting closing Q2, I just looked outside the window at Frösundavik, and there I saw 70, 75 people that were joining our running club.

Speaker #1: So, activating the brand with real people out there, I think, is crucial for us. And we've done, you know, hundreds of activations during Q2.

Speaker #1: So I think that's another example of reaching out and building a strong connection with end consumers. And we need to continue doing that. I think we're doing that really, really well.

Speaker #1: One was yesterday. Askari is across the street here, you know, with a paddle event. We've been activating ourselves in all the major cities with a very, very strong impact.

Speaker #1: And also, of course, that's partly why our own ecom is going so well. It's really resonating well with what we do with end consumers out there.

Speaker #1: And I think that's the way to really build this brand—real stories with real people. Only yesterday, when we had our board meeting closing Q2, I just looked outside the window at Frösundavik, and there I saw 70 or 75 people who were joining our running club.

Speaker #1: So that's reassuring, and of course we need to continue doing that. Looking at the sales development, and again, of course, Q2 is a disappointment.

Speaker #1: Partly, of course, we delivered, you know, orders earlier, but also when you look at the first half year, we're slightly behind last year's numbers.

Speaker #1: So I think that's another example of reaching out and building a strong connection with end consumers, and we need to continue doing that. I think we're doing that really, really well.

Henrik Bunge: I think that is another example of reaching out and building a strong connection with end consumers, and we need to continue doing that, and I think we are doing that really well. Also, of course, that is partly why our own e-commerce is going so well. It is really resonating well with what we do with end consumers out there. That is reassuring, and of course, we need to continue doing that. Looking at the sales development, and again, of course, Q2 is a disappointment. Partly, of course, we delivered orders earlier. Also when you look at the H1, we are slightly behind last year's numbers. So, it is a poor sales development. Again, the highlight is really on e-commerce. It is only related to a wholesale and a couple of big customers. Here we simply need to work more and harder. Looking at the categories.

Speaker #1: So it's a poor sales development. And again, the highlight is really own ecom. It's only related to wholesale and a couple of big customers.

Speaker #1: And also, of course, that's partly why our own e-com is going so well. It's really resonating with what we do with end consumers out there.

Speaker #1: So here we simply need to work more and harder. Looking at the categories, well, of course, with wholesale declining a bit, that means that also most of the categories are declining.

Speaker #1: So that's reassuring, and of course, we need to continue doing that. Looking at the sales development—and again, of course—Q2 is a disappointment.

Speaker #1: But if you dig a bit deeper and you try to look for victories and see what is actually working, we can conclude on one hand that training.

Speaker #1: Partly, of course, we delivered orders earlier, but also, when you look at the first half-year, we're slightly behind last year's numbers.

Speaker #1: So the stuff we do for those that go to the gym is going really, really well. Both for, you know, adults, but also for kids.

Speaker #1: So it's a poor sales development. And again, the highlight is really own e-com. It's only related to wholesale and a couple of big customers.

Speaker #1: So we see that our junior collection is developing fantastic, growing 53 percent versus last year. Footwear is declining, and of course, that's a major focus.

Speaker #1: So here, we simply need to work more and harder. Looking at the categories, well, of course, with wholesale declining a bit, that means that also most of the categories are declining.

Speaker #1: So we need to change that trend. The highlights with footwear is that an own ecom, we're growing Sweden is growing. However, of course, we still see big drops in Netherlands and in Belgium.

Henrik Bunge: Well, of course, with wholesale declining a bit, means that also most of the categories are declining. But if you dig a bit deeper and you try to look for victories and see what is actually working, we can conclude on one hand that training, so the stuff we do for those that go to the gym is going really well. Both for adults but also for kids. We see that our junior collection is developing fantastic, growing 53% versus last year. Footwear is declining, and of course, that is a major focus. We need to change that trend. The highlights with footwear is that in own e-commerce, we are growing. Sweden is growing. However, of course, we still see big drops in Netherlands and in Belgium. So the work here continues. I have been asked a couple of times, how long will you do this?

Speaker #1: But if you dig a bit deeper and try to look for victories and see what is actually working, we can conclude, on one hand, that training...

Speaker #1: So the work here continues. And I've been asked a couple of times, you know, how long will you do this? So yes, to remind you all, footwear, even though of course we're declining in turnover, it's still profitable.

Speaker #1: So the stuff we do for those that go to the gym is going really, really well, both for, you know, adults, but also for kids.

Speaker #1: So, we see that our junior collection is developing fantastically, growing 53% versus last year. Footwear is declining, and of course, that's a major focus.

Speaker #1: We're making money here. The ambition, of course, is to turn this into a 5 or 600 million category. Currently, we're, you know, closer to 70, 80 million rolling 12.

Speaker #1: So we need to change that trend. The highlights with footwear are that in own e-com, we're growing; Sweden is growing. However, of course, we still see big drops in the Netherlands and in Belgium.

Speaker #1: And of course, we want the 500 to happen quick. It's going to take a bit of time, but we will continue to focus on footwear.

Speaker #1: We believe that the brand is strong, the brand is able to have multiple different categories of which footwear should be one. Bags is doing okay, growing in the quarter.

Speaker #1: So the work here continues. And I've been asked a couple of times, you know, how long will you do this? So yes, to remind you all, footwear—even though, of course, we're declining in turnover—is still profitable.

Henrik Bunge: Just to remind you all, footwear, even though of course we are declining in turnover, it is still profitable. We are making money here. The ambition, of course, is to turn this into a 500 or 600 million category. Currently, we are closer to 70, 80 million rolling 12-month. Of course, we want the 500 to happen quick. It is going to take a bit of time, but we will continue to focus on footwear. We believe that the brand is strong. The brand is able to have multiple different categories of which footwear should be one. Bags is doing okay, growing in the quarter, and our swim collection has been doing good. Of course, partly thanks to an exceptional, really good weather, sometimes a bit too warm, of course, during Q2.

Speaker #1: And our swim collection has been doing good. Of course, partly thanks to an exceptionally really good weather. Sometimes a bit too warm, of course.

Speaker #1: We're making money here. The ambition, of course, is to turn this into a 500 or 600 million category. Currently, we're, you know, closer to 70–80 million rolling 12.

Speaker #1: During Q2. So overall, of course, a few highlights, and of course other things that is not working according to plan. So simply more work to be done.

Speaker #1: And of course, we want the 500 to happen quickly. It’s going to take a bit of time, but we will continue to focus on footwear.

Speaker #1: When we look at the countries, of course, with wholesale declining, well, we see that then in, you know, in all of the markets. Finland is holding on really, really well.

Speaker #1: We believe that the brand is strong. The brand is able to have multiple different categories, of which footwear should be one. Bax is doing okay, growing in the quarter.

Speaker #1: Norway is also rebounding a bit. And then, of course, looking at the channels then. So of course, wholesale, as we said, is declining. Partly due to timing, but also partly due to a bit of a lower order book.

Speaker #1: And our swim collection has been doing good. Of course, partly thanks to exceptionally really good weather—sometimes a bit too warm, of course.

Speaker #1: During Q2, so overall, of course, there were a few highlights—and, of course, other things that are not working according to plan. So, simply, more work to be done.

Speaker #1: Ecom is doing very, very well. It's a growing 17 percent in the quarter. Profit is increasing. Profit ratio is increasing. So of course, there's a lot of highlights with ecom.

Henrik Bunge: Overall, of course, a few highlights and of course, other things that are not working according to plan, so simply more work to be done. When we look at the countries, of course, with wholesale declining, we see that then in all of the markets. Finland is holding on really, really well. Norway is also rebounding a bit. Then of course, looking at the channels, so of course, wholesale, as we said, is declining, partly due to timing, but also partly due to a bit of a lower order book. E-com is doing very well, so growing 17% in the quarter. Profit is increasing, profit ratio is increasing. So of course, there are a lot of highlights with e-com, and of course, that is the channel where we are closest to the consumer, so that is super good. Retail is struggling as well.

Speaker #1: When we look at the countries, of course, with wholesale declining, well, we see that then, you know, in all of the markets, Finland is holding on really, really well.

Speaker #1: And of course, that's the channel where we're closest to the consumer. So that's super good. Retail is struggling as well. Com stores is declining 5 percent.

Speaker #1: And we can conclude that the traffic is really dropping during the summer when the weather is what it is. Distributors are doing okay. Mostly then thanks to Norway.

Speaker #1: Norway is also rebounding a bit. And then, of course, looking at the channels, so of course wholesale, as we said, is declining—partly due to timing, but also partly due to a bit of a lower order book.

Speaker #1: But again, of course, our focus channels is wholesale. And ecom, ecom is working good. Wholesale is having a weak quarter. And here we simply can do better.

Speaker #1: Ecom is doing very, very well—growing 17% in the quarter. Profit is increasing, and the profit ratio is increasing. So, of course, there are a lot of highlights with ecom.

Speaker #1: And of course, that's the channel where we're closest to the consumer. So that's super good. Retail is struggling as well. Comp stores are declining 5%.

Speaker #1: We are here to grow. We're not growing. That is simply not good enough. So for us and for me, it's, you know, back to work and show you guys that we can do a lot better.

Henrik Bunge: Comparable store sales is declining at 5%, and we can conclude that the traffic is really dropping during the summer when the weather is what it is. Distributors are doing okay, mostly then thanks to Norway. But again, of course, our focus channels are wholesale and e-com. E-com is working good. Wholesale is having a weak quarter and here we simply can do better. We are here to grow. We are not growing. That is simply not good enough. For us, and for me, it is back to work and show you guys that we can do a lot better. I think with that said, let us dig into some of the other numbers where actually things look a lot better. With that, Jens, why do not you showcase a bit the margin development here in the quarter?

Speaker #1: And we can conclude that the traffic is really dropping during the summer when the weather is what it is. Distributors are doing okay, mostly then thanks to Norway.

Speaker #1: So I think with that said, let's, you know, dig into some of the other numbers we're actually things looks a lot better. So with that, Jens, why don't you showcase a bit margin development here in the quarter?

Speaker #1: But again, of course, our focus channels are wholesale and e-com. E-com is working well. Wholesale is having a weak quarter, and here we simply can do better.

Speaker #2: Will do. Thanks a lot, Henrik. Well, good morning to you all. And yeah, in a world that sometimes feel you don't know really what's real or what's not, it's good to be back from the summer at least to find your colleagues that are certainly real.

Speaker #1: We are here to grow. We're not growing. That is simply not good enough. So for us, and for me, it's, you know, back to work and to show you guys that we can do a lot better.

Speaker #2: That makes me filled with energy to continue this journey and develop this company. Clearly, as you heard, the Q2 was a disappointment in terms of sales.

Speaker #1: So I think with that said, let's, you know, dig into some of the other numbers where actually things look a lot better. So with that, Jens, why don't you showcase a bit of the margin development here in the quarter?

Speaker #2: There are some highlights, however. Looking at the gross margin, it's improving versus last year. You can really split that into three parts if you want.

Speaker #2: Will do. Thanks a lot, Henrik. Well, good morning to you all. And yeah, in a world that sometimes feels like you don't really know what's real or what's not, it's good to be back from the summer, at least to find your colleagues that are certainly real.

Jens Nyström: Will do. Thanks a lot, Henrik. Well, good morning to you all. In a world that sometimes feels you do not know really what is real or what is not, it is good to be back from the summer, at least, to find your colleagues that are certainly real. That makes me filled with energy to continue this journey and develop this company. Clearly, as you heard, Q2 was a disappointment in terms of sales. There are some highlights, however. Looking at the gross margin, it is improving versus last year. You can really split that into three parts if you want for Q2. It is partly, as you heard from Henrik, our own e-commerce is growing with a high gross margin that takes a bigger share of the total, meaning that the share of the segment or the channels is improving the margins.

Speaker #2: For the Q2, it's partly, as you heard from Henrik, our own e-commerce is growing. We had a high gross margin that takes a bigger share of the total, meaning that so the share of the segment, so the channels is improving, the margins.

Speaker #2: That makes me feel energized to continue this journey and develop this company. Clearly, as you heard, Q2 was a disappointment in terms of sales.

Speaker #2: Otherwise, we have a favorable FX development in the quarter that helps the margin as well. And also product mix that is going in the right direction.

Speaker #2: There are some highlights; however, looking at the gross margin, it's improving versus last year. You can really split that into three parts, if you want.

Speaker #2: So that's all combined helping to a very good gross margin in the Q2. So that's one highlight. The operating profit as well is improving 11 percent versus last year.

Speaker #2: For the Q2, it's partly, as you heard from Henrik, our own e-commerce is growing with a high gross margin that takes a bigger share of the total, meaning that.

Speaker #2: So that's good in a quarter where, as you already heard now, we're losing or dropping sales. So quite pleased with the fact that, you know, we can drive a profitable company here despite the sales is dropping.

Speaker #2: So the share of the segment of the channels is improving the margins. Otherwise, we have a favorable FX development in the quarter that helps the margin as well.

Jens Nyström: Otherwise, we have a favorable FX development in the quarter that helps the margin as well, and also product mix that is going in the right direction. So that is all combined helping to a very good gross margin in Q2. So that is one highlight. The operating profit as well is improving 11% versus last year. So that is good in a quarter where, as you already heard now, we are losing or dropping sales. So quite pleased with the fact that we can drive a profitable company here despite the sales dropping. Clearly being helped by favorable FX, but also the channel mix, as you heard before, is helping the profitability. So that is two good things in an otherwise slightly disappointing quarter. If we summarize all this in a simplified P&L, you already heard sales is dropping 12%. However, the gross margin, as I just mentioned, is up 5.6 points.

Speaker #2: Clearly being helped by favorable FX, but also the channel mix, as you heard before, is helping the profitability. So that's a two good things in an otherwise slightly disappointing quarter.

Speaker #2: And also the product mix is going in the right direction. So that's all combined, helping to achieve a very good gross margin in Q2.

Speaker #2: So that's one highlight. The operating profit as well is improving, up 11% versus last year. So that's good in a quarter where, as you already heard, we're losing or dropping sales.

Speaker #2: If we summarize all this in a simplified P&L, you already heard, sales is dropping 12 percent. However, the gross margin, then as I just mentioned, is up 5.6 points.

Speaker #2: So, quite pleased with the fact that, you know, we can drive a profitable company here despite sales dropping. Clearly, being helped by favorable FX, but also the channel mix, as you heard before, is helping the profitability.

Speaker #2: The operating expenses is more or less where we want them to be. So we have good control on that. And the EBIT margin, as I mentioned, up 11 percent.

Jens Nyström: Clearly being helped by favorable FX, but also the channel mix, as you heard before, is helping the profitability. So that is two good things in an otherwise slightly disappointing quarter. If we summarize all this in a simplified P&L, you already heard sales is dropping 12%. However, the gross margin, as I just mentioned, is up 5.6 points.

Speaker #2: So that's a, you know, overall disappointing on sales, but in other places a good P&L, I should say. In terms of the equity or the solidity, quite stable, dropping slightly, 0.5 points versus last year, but still on high levels.

Speaker #2: So that's two good things in an otherwise slightly disappointing quarter. If we summarize all this in a simplified P&L, you already heard, sales are dropping 12%.

Speaker #2: However, the gross margin, as I just mentioned, is up 5.6 points. The operating expenses are more or less where we want them to be.

Speaker #2: Net debt is decreasing, which is really good considering everything that's happening. So I'm very pleased with a quite a big drop in the net debt.

Jens Nyström: The operating expenses is more or less where we want them to be, so we have good control on that. The EBIT margin, as I mentioned, up 11%. That's overall disappointing on sales, but in other places, a good P&L, I should say. In terms of the equity or the solidity, quite stable, dropping slightly, 0.5 points versus last year, but still on high levels. Net debt is decreasing, which is really good considering everything that's happening. I'm very pleased with quite a big drop in the net debt. Our working capital is really, really stable. At least when you compare it to the gross sales rolling 12-month, flat versus last year. Around 20%, 21%, that's where we want it to be, obviously focusing on the right things. That was a few highlights from the bottom lines.

Speaker #2: So we have good control on that. And the EBIT margin, as I mentioned, is up 11%. So that's overall disappointing on sales, but in other places, good P&L, I should say.

Speaker #2: Our working capital is really, really stable. So at least when you compare it to the gross sales rolling 12 months, flat versus last year.

Speaker #2: In terms of the equity, or the solidity, it's quite stable, dropping slightly—0.5 points versus last year—but still at high levels. Net debt is decreasing.

Speaker #2: So around 20 percent, 21 percent, that's where we want it to be. Obviously focusing on the right things. So that was a few highlights from the bottom lines with that, Henrik, why don't you close this one?

Speaker #2: Which is really good, considering everything that's happening. So I'm very pleased with quite a big drop in the net debt. Our working capital is really, really stable.

Speaker #1: Yes, yes, yes. Thank you, Jens. And again, of course, if we should then at least close the quarter with some things to be proud over.

Speaker #1: We just launched Golf that is working really, really well with very, very strong sell-through numbers. However, of course, still small volumes. But I think it also tells that the brand is ready to launch new category, new product groups.

Speaker #2: So at least when you compare it to the gross sales rolling 12 months, it's flat versus last year. So, and around 20%, 21%—that's where we want it to be.

Speaker #2: Obviously, focusing on the right things. So, those were a few highlights from the bottom lines. With that, Henrik, why don't you close this one?

Speaker #1: Secondly, of course, own ecom is doing really, really well. So growing 17 percent. Apparel within own ecom is growing 28 percent. I think that's something that we're super proud over.

Jens Nyström: With that, Henrik, why don't you close this one?

Speaker #1: Yes, yes, yes. Thank you, Jens. And again, of course, we should then at least close the quarter with some things to be proud of.

Henrik Bunge: Yes. Thank you, Jens. Again, of course, if we should then at least close the quarter with some things to be proud over. We just launched golf. That is working really well with very strong sell-through numbers. However, of course, still small volumes. But I think it also tells that the brand is ready to launch a new category, new product groups. Secondly, of course, our own e-com is doing really well. Growing 17%. Apparel within our e-com is growing 28%. I think that's something that we're super proud over. Of course, lastly, profitability is increasing. Looking at H1, we never made more money in the history of this company. Of course, that's also something that we're super proud over. Again, however, of course, it was a weak quarter in terms of sales. We need to grow.

Speaker #1: And of course, you know, lastly, you know, profitability is increasing. Looking at first half year, we never made more money in the history of this company.

Speaker #1: We just launched Golf, which is working really, really well with very, very strong sell-through numbers. However, of course, volumes are still small. But I think it also shows that the brand is ready to launch new categories and new product groups.

Speaker #1: So of course, that's also something that we're super proud over. Again, however, of course, it was a weak quarter in terms of sales. We need to grow.

Speaker #1: We don't grow. And of course, that needs to change very clearly. So I think with that said, you know, thank you for listening in.

Speaker #1: Secondly, of course, own e-com is doing really, really well, growing 17%. Apparel within own e-com is growing 28%. I think that's something that we're super proud of.

Speaker #1: I'm sure that Hjalmar has had tons of, you know, good questions as well. So hang on for a few more minutes and let's see where this will take us.

Speaker #2: Thank you so much, Henrik. And I guess let's start at the wholesale segment. You mentioned, of course, the timing effect and we know between Q1 and Q2 that there were some timing effects.

Speaker #1: And of course, you know, lastly, profitability is increasing. Looking at the first half-year, we have never made more money in the history of this company.

Speaker #1: So, of course, that's also something that we're super proud of. Again, however, of course, it was a weak quarter in terms of sales. We need to grow.

Speaker #2: But if we disregard this are you satisfied with sort of the underlying development in the wholesale segment? If we evaluate the first half of the year?

Speaker #1: We don't grow, and of course, that needs to change very clearly. So I think with that said, thank you for listening in.

Henrik Bunge: We don't grow, and of course, that needs to change very clearly. I think with that said, thank you for listening in. I'm sure that Hjalmar has a tons of good questions as well. Hang on for a few more minutes and let's see where this will take us.

Speaker #1: No, no, I think it's a big disappointment. So I think if we look at first half year, we're down, I think, 1.4 percent on top line.

Speaker #1: I'm sure that Hjalmar has had tons of, you know, good questions as well. So hang on for a few more minutes, and let's see where this will take us.

Speaker #1: And of course, we want to grow 10 percent. So that is not at all according to plan. Of course, you know, the way the business works with wholesale is that we do pre-orders the year before.

Speaker #2: Thank you so much, Henrik. And I guess let's start at the wholesale segment. You mentioned, of course, the timing effect, and we know between Q1 and Q2 that there were some timing effects.

[Analyst] (Redeye): Thank you so much, Henrik. I guess let's start at the wholesale segment. You mentioned, of course, the timing effect, and we know between Q1 and Q2 that there were some timing effects. If we disregard this, are you satisfied with the underlying development in the wholesale segment if we evaluate the H1 of the year?

[Analyst]: Thank you so much, Henrik. I guess let's start at the wholesale segment. You mentioned, of course, the timing effect, and we know between Q1 and Q2 that there were some timing effects. If we disregard this, are you satisfied with the underlying development in the wholesale segment if we evaluate the H1 of the year?

Speaker #1: So the order book that we took, you know, last year, so in August 2025, was a bit weaker. Then what it was the year before.

Speaker #2: But if we disregard this, are you satisfied with the underlying development in the wholesale segment if we evaluate the first half of the year?

Speaker #1: And of course, in order to catch up, you need to do more reorder, more never out of stock, more ecom. But that was a bit tough to, you know, catch for that gap that was created with a poor order book.

Speaker #1: No, no, I think it's a big disappointment. So, I think if we look at the first half-year, we're down, I think, 1 or 1.4% on top line.

Henrik Bunge: No, I think it's a big disappointment. I think if we look at H1, we're down, I think, 1.4% on top line, and of course, we want to grow 10%. That is not at all according to plan. Of course, the way the business works with wholesale is that we do pre-orders the year before. So the order book that we took last year, so in August 2025, was a bit weaker than what it was the year before. Of course, in order to catch up, you need to do more reorder, more never out of stock, more e-com. That was a bit tough to catch for that gap that was created with that poor order book. That poor order book was related to one or two accounts.

Speaker #1: And of course, we want to grow 10%. So that is not at all according to plan. Of course, you know, the way the business works with wholesale is that we do pre-orders.

Speaker #1: And that poor order book was related to, you know, one or two accounts. So actually, you know, most things are doing good. But of course, if you have a big account that is buying a bit less in pre-orders and of course, it's hard to catch up.

Speaker #1: The year before, so the order book that we took, you know, last year, so in August 2025, was a bit weaker. Then what it was the year before.

Speaker #1: But, you know, first half year, from a sales perspective, wholesale is a disappointment, very clearly.

Speaker #2: Okay, okay. Yeah. So is it fair to assume then that this is not reflecting sort of a sort of like a widespread decline, but rather isolated at a few accounts?

Speaker #1: And of course, in order to catch up, you need to do more reorders, more never-out-of-stock, more e-com. But that was a bit tough—to, you know, catch up for that gap that was created with that poor order book.

Speaker #2: Or how do you feel that this development is maybe comparing to the market? Are you going in line with the market or how is your market share developing?

Henrik Bunge: So actually, most things are doing good, but of course, if you have a big account that is buying a bit less in pre-orders, then of course it's hard to catch up.

Speaker #1: No. If we look at, you know, sort of sell-through data, so not perhaps so much than our total sales, we see that we're performing really, really well.

Speaker #1: But, you know, first half-year, from a sales perspective, wholesale is a disappointment—very clearly.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: H1, from a sales perspective, wholesale is a disappointment very clearly.

Speaker #1: Both with our wholesale customers. So they're selling out our products at a good pace. But also, of course, with own ecom. So the brand is strong.

Speaker #2: Okay, okay. Yeah. So is it fair to assume then that this is not reflecting sort of a widespread decline, but rather isolated at a few accounts?

[Analyst] (Redeye): Okay. Yeah. Is it fair to assume then that this is not reflecting a widespread decline, but rather isolated at a few accounts? How do you feel that this development is maybe comparing to the market? Are you going in line with the market or how is your market share developing?

[Analyst]: Okay. Yeah. Is it fair to assume then that this is not reflecting a widespread decline, but rather isolated at a few accounts? How do you feel that this development is maybe comparing to the market? Are you going in line with the market or how is your market share developing?

Speaker #1: People are buying our stuff. The issue, of course, was that we came in with a poor order book. So of course, that stuff has been sold out.

Speaker #2: Or how do you feel that this development is maybe comparing to the market? Are you going in line with the market, or how is your market share developing?

Speaker #1: We simply need to be, you know, better. Of course, tying, you know, the big key accounts, wholesale partners, closer to us. And driving growth with all of them.

Speaker #1: No. If we look at, you know, sort of sell-through data—so not perhaps so much at our total sales—we see that we're performing really, really well, both with our wholesale customers.

Henrik Bunge: If we look at sell-through data, not perhaps so much than our total sales, we see that we are performing really well, both with our wholesale customers, so they are selling out their products at a good pace, but also of course with own e-com. The brand is strong. People are buying our stuff. The issue of course was that we came in with a poor order book, so of course that stuff has been sold out. We simply need to be better of course, tying the big key accounts, wholesale partners closer to us, and driving growth with all of them. Of course, we know that we have a few really big ones, like a Zalando or a Boozt, XXL, Stadium. Of course, if one of those are declining, it is hard to catch up of course. But we need to grow with all of them.

Speaker #1: And of course, we know that we have a few really big ones. So like a Saland or a Boost, XXL, you know, Stadium. And of course, if one of those are declining, you know, it's hard to, you know, to catch up, of course.

Speaker #1: So they're selling out our products at a good pace, but also, of course, with our own e-com. So the brand is strong. People are buying our stuff.

Speaker #1: But we need to grow with all of them. I believe our strength has been that we're good in wholesale, but also very strong in own ecom.

Speaker #1: The issue, of course, was that we came in with a poor order book. So, of course, that stuff has been sold out. We simply need to be, you know, better.

Speaker #1: And we need to manage both. And clearly, of course, you know, this first half year has indicated that wholesale is not, you know, performing the way we would want it to perform.

Speaker #1: Of course, tying, you know, the big key accounts—wholesale partners—closer to us, and driving growth with all of them. And, of course, we know that we have a few really big ones.

Speaker #2: Yeah. Okay. Thank you. And tying all this together, as it relates to your financial targets, I mean, of course, a lot of moving parts, a lot of external items as well.

Speaker #1: So, like a Zalando or Boozt, XXL, you know, Stadium. And of course, if one of those are declining, you know, it's hard to, you know, to catch up, of course.

Speaker #2: But how should we look at your growth trajectory going forward? I mean, how will you balance, you know, the profitability target with the growth and, of course, some things are in your control, some things are out of it, but just how do you perceive this split going forward?

Speaker #1: But we need to grow with all of them. I believe our strength has been that we're good in wholesale, but also very strong in our own e-com.

Henrik Bunge: I believe our strength has been that we are good in wholesale, but also very strong in own e-com, and we need to manage both.

Speaker #1: And we need to manage both. And clearly, of course, you know, this first half-year has indicated that wholesale is not, you know, performing the way we would want it to perform.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Speaker #1: Well, I think what we can see though is that we're, you know, well above, you know, our profit target. In terms of what we've said.

Henrik Bunge: Clearly of course, this H1 has indicated that wholesale is not performing the way we would want it to perform.

Speaker #1: So we said minimum 10 percent and we're simply doing a lot more. More than 11. So on the other hand, of course, you know, sales is flat and we want to grow 10 percent.

Speaker #2: Yeah, okay. Thank you. And tying all this together as it relates to your financial targets—I mean, of course, there are a lot of moving parts, a lot of external items as well.

[Analyst] (Redeye): Yeah. Okay. Thank you. Tying all this together, as it relates to your financial targets, of course a lot of moving parts, a lot of external items as well, but how should we look at your growth trajectory going forward? How will you balance the profitability target with the growth, and of course, some things are in your control, some things are out of it, but just how do you perceive this split going forward?

[Analyst]: Yeah. Okay. Thank you. Tying all this together, as it relates to your financial targets, of course a lot of moving parts, a lot of external items as well, but how should we look at your growth trajectory going forward? How will you balance the profitability target with the growth, and of course, some things are in your control, some things are out of it, but just how do you perceive this split going forward?

Speaker #2: But how should we look at your growth trajectory going forward? I mean, how will you balance the profitability target with growth? And of course, some things are in your control, some things are out of it.

Speaker #1: And of course, yes, we come from 25, you know, consecutive quarter of growth. So of course, you know, it's the first quarter that we don't grow in a very, very, very long time.

Speaker #1: So on one hand, I don't want to overplay that. But I think it's very clear, you know, our challenge is not profitability. Our challenge is to, you know, grow quicker.

Speaker #2: But just how do you perceive this split going forward?

Speaker #1: Well, I think what we can see, though, is that we're, you know, well above, you know, our profit target in terms of what we've said.

Henrik Bunge: I think what we can see, though, is that we are well above our profit target in terms of what we have said. So we said minimum 10%, and we are simply doing a lot more, more than 11%. On the other hand, of course, sales is flat and we want to grow 10%. Of course, yes, we come from 25 consecutive quarters of growth, so of course, it is the first quarter that we do not grow in a very long time. So on one hand, I do not want to overplay that, but I think it is very clear. Our challenge is not profitability. Our challenge is to grow quicker. Of course, it is all about looking at our investments, looking at what we do, and we simply need to generate more growth in all the channels, e-com, but also, of course, the wholesale customers.

Speaker #1: So of course, it's all about, you know, looking at our investments, looking at what we do. And we simply then need to generate more growth in all the channels, ecom, but also, of course, you know, the wholesale customers.

Speaker #1: So, we said a minimum of 10%, and we're simply doing a lot more—more than 11%. On the other hand, of course, you know, sales are flat and we want to grow 10%.

Speaker #1: So without then, you know, giving away the future, we're here to deliver on our financial targets. We're currently not doing that from a sales perspective.

Speaker #1: And of course, yes, we come from 25 consecutive quarters of growth. So of course, you know, it’s the first quarter that we haven’t grown in a very, very, very long time.

Speaker #1: So, on one hand, I don't want to overplay that. But I think it's very clear—our challenge is not profitability; our challenge is to, you know, grow quicker.

Speaker #1: We need to do better.

Speaker #2: Yeah. Okay. Thank you. And then the gross margin, of course, very strong. But this is a channel mixed question among us, right? How would you balance these items in the second quarter?

Speaker #1: So, of course, it's all about, you know, looking at our investments, looking at what we do. And we simply then need to generate more growth in all the channels—e-com, but also, of course, you know, the wholesale customers.

Speaker #2: I mean, of course, the big split, I guess, is the sales market driver. But how do the other items, I mean?

Speaker #1: So without, then, you know, giving away the future, we're here to deliver on our financial targets. We're currently not doing that from a sales perspective.

Speaker #1: Well, we got actually after Q1, a couple of you guys actually reached out to us and asked why we don't disclose. Of course, you know, the full impact of currencies, for example.

Henrik Bunge: So, without them giving away the future, we are here to deliver on our financial targets. We are currently not doing that from a sales perspective. We need to do better.

Speaker #1: So if we take Q2, so our gross margin is up, I think, 5.6 percent roughly. If we divide that into what is increasing it with the 5.6, we can see that there's three things that has an equal impact on the gross margin in a positive sense.

Speaker #1: We need to do better.

Speaker #2: Yeah, okay. Thank you. And then the gross margin, of course, very strong. But this is a channel mix question, among other items. How would you balance these items in the second quarter?

[Analyst] (Redeye): Yeah. Okay. Thank you. The gross margin, of course, very strong. But this is a channel mix question among other items. How would you balance these items in Q2? Of course, the big split, I guess, is the sales market.

[Analyst]: Yeah. Okay. Thank you. The gross margin, of course, very strong. But this is a channel mix question among other items. How would you balance these items in Q2? Of course, the big split, I guess, is the sales market.

Speaker #2: I mean, of course, the big split, I guess, is the sales market driver. But how do the other items—I mean.

Henrik Bunge: Yeah

[Analyst] (Redeye): driver, but how do the other items, I mean

[Analyst]: driver, but how do the other items, I mean

Speaker #1: And one, of course, is the channel mix, like Jens just talked about. So of course, ecom is taking a bigger share. Here we have, you know, well, 77 percent gross margin.

Henrik Bunge: Actually after Q1, a couple of you guys actually reached out to us and asked why we do not disclose, of course, the full impact of currencies, for example. If we take Q2, our gross margin is up, I think 5.6% roughly. If we divide that into what is increasing it, the 5.6, we can see that there are three things that have an equal impact on the gross margin in a positive sense. One, of course, is the channel mix like Jens just talked about. Of course, e-com is taking a bigger share. Here we have 77% gross margin, so that is lifting it. That is one third of it, roughly. The other one is related to the wholesale drop because of course it is the big key account that dropped a bit. They had the highest discounts. We have lower discounts within wholesale.

Speaker #1: Well, we got actually after Q1, a couple of you guys actually reached out to us and asked why we don't disclose. Of course, you know, the full impact of currencies, for example.

Speaker #1: So that's lifting it. That's one third of it, roughly. The other one, it's related to the, you know, a bit the wholesale drop. Because of course, it's the big key account that dropped a bit.

Speaker #1: So if we take Q2, our gross margin is up, I think, 5.6% roughly. If we divide that—what is increasing it with the 5.6—we can see that there are three things that have an equal impact on the gross margin in a positive sense.

Speaker #1: They have the highest discounts. We have lower discounts within wholesale. That's, you know, one third. And then the last one third is then currency.

Speaker #1: So still, we're, you know, buying in US dollar. We're selling in euros and SEK. And even though it's been flattening out a bit, actually, it's still, you know, having a positive impact in Q2.

Speaker #1: And one, of course, is the channel mix, like Jens just talked about. So, of course, e-com is taking a bigger share. Here we have, you know, well, 77% gross margin.

Speaker #1: And those three not exactly, but close to exactly standing for one third each in Q2.

Speaker #1: So that's lifting it. That's one third of it, roughly. The other one, it's related to, you know, a bit, the wholesale drop. Because, of course, it's the big key account that dropped a bit.

Speaker #2: Okay. Thank you. That's very clear. And I mean, even if we look at the FX items, of course, I mean, like you mentioned, the profitability is on a very good level right now.

Speaker #1: They had the highest discounts. We have lower discounts within wholesale—that's, you know, one third. And then the last one third is currency.

Henrik Bunge: That is one third, and the last one third is then currency. Still we are buying in US dollar, we are selling in euros and SEK. Even though it has been flattening out a bit actually, it is still having a positive impact in Q2. Those three, not exactly, but close to exactly standing for one third each in Q2.

Speaker #2: Could it be fair to assume maybe that you want to invest some more in growth going forward, maybe to drive, you know, the own direct-to-consumer channels or how should we view that?

Speaker #1: So still, we're, you know, buying in US dollars. We're selling in euros and SEK. And even though it's been flattening out a bit, actually, it's still, you know, having a positive impact in Q2.

Speaker #2: Are you happy with the sort of like marketing yield that you're getting right now and what could we expect?

Speaker #1: And those three, not exactly, but close to exactly, stand for one third each in Q2.

Speaker #1: No. I think, you know, when we look at the way we spend our money, of course, there's a big chunk that you don't know whether you're getting something back for.

Speaker #2: Okay. Thank you. That's very clear. And I mean, even if we look at the FX items, of course, I mean, like you mentioned, the profitability is on a very good level right now.

[Analyst] (Redeye): Okay. Thank you. That is very clear. Even if we look at the FX items, of course, like you mentioned, the profitability is on a very good level right now. Could it be fair to assume maybe that you want to invest some more in growth going forward? Maybe to drive their own direct to consumer channels or how should we view that? Are you happy with the marketing yield that you are getting right now and what could we expect?

[Analyst]: Okay. Thank you. That is very clear. Even if we look at the FX items, of course, like you mentioned, the profitability is on a very good level right now. Could it be fair to assume maybe that you want to invest some more in growth going forward? Maybe to drive their own direct to consumer channels or how should we view that? Are you happy with the marketing yield that you are getting right now and what could we expect?

Speaker #1: We have a feeling. And then, of course, there's components around performance marketing, meta, where you know exactly. And of course, when I look at our return on ad spend, where we can measure performance, those are very, very high.

Speaker #2: Could it be fair to assume, maybe, that you want to invest some more in growth going forward—maybe to drive, you know, your own direct-to-consumer channels? Or how should we view that?

Speaker #1: So that indicates, of course, that there's room for us to invest even more. Which, of course, will drive then ecom even further. And potentially strengthen the brand.

Speaker #2: Are you happy with the sort of, like, marketing yield that you're getting right now, and what could we expect?

Henrik Bunge: No, but I think, when we look at the way we spend our money, of course there's a big chunk that you don't know whether you're getting something back for. We have a feeling. Then of course there's components around performance marketing, Meta, where you know exactly. Of course, when I look at our return on ad spend, where we can measure performance, those are very high. So that indicates, of course, that there's room for us to invest even more, which of course will drive e-com even further and potentially strengthen the brand. So, that's something we're looking into. However, of course, our approach has been we want to grow, and we also want to be a very strong partner to our biggest key accounts. So we want to invest in them.

Speaker #1: No, I think, you know, when we look at the way we spend our money, of course there's a big chunk where you don't know whether you're getting something back for it.

Speaker #1: So that's something we're looking into. However, of course, you know, our approach has been we want to grow and we also want to be a very strong partner to our biggest key accounts.

Speaker #1: We have a feeling. And then, of course, there's components around performance marketing—Meta—where you know exactly. And of course, when I look at our return on ad spend, where we can measure performance, those are very, very high.

Speaker #1: So we want to invest in them. We want to invest into the brand so they can sell out our products at better margins. And of course, you know, performance marketing, it's not going to help that.

Speaker #1: So that indicates, of course, that there is room for us to invest even more, which, of course, will drive e-com even further and potentially strengthen the brand.

Speaker #1: So we want to invest in both, continue to drive on ecom, but also, of course, invest into the brand so we can grow even more or start growing, if you look at Q2, then with our wholesale customers.

Speaker #1: So that's something we're looking into. However, of course, you know, our approach has been that we want to grow, and we also want to be a very strong partner to our biggest key accounts.

Speaker #2: Yeah. Yeah. Thank you. And if you look at the, if you stay on the topic then of growing with the wholesale customers, what is, do you think the key challenge here is it, if you look at maybe the product offering, is it upselling, you know, new items, the focus areas that you launch or is it maintained sort of growth within the, you know, the legacy categories maybe?

Speaker #1: So, we want to invest in them. We want to invest into the brand so they can sell our products at better margins. And, of course, you know, performance marketing is not going to help that.

Henrik Bunge: We want to invest into the brand so they can sell out our products at better margins. Of course, performance marketing is not going to help that. So we want to invest in both, continue to drive on e-com, but also of course invest into the brand so we can grow even more, or start growing, if you look at Q2 then with our wholesale customers.

Speaker #1: So, we want to invest in both—continue to drive our own e-com, but also, of course, invest in the brand so we can grow even more.

Speaker #2: What do you see the key item is to drive growth for the wholesale?

Speaker #1: No. But I think, you know, it is, you know, to continue to do what we're doing. But I think what we need to be better at, we have a couple of really big customers.

Speaker #1: Or start growing, if you look at Q2, then with our wholesale customers.

Speaker #2: Yeah, yeah, thank you. And if you look at the, if you stay on the topic then of growing with the wholesale customers, what do you think the key challenge here is? If you look at maybe the product offering, is it upselling, you know, new items, the focus areas that you launch, or is it maintaining sort of growth within the, you know, the legacy categories maybe?

[Analyst] (Redeye): Yep. Thank you. If you stay on the topic then of growing with the wholesale customers, what do you think the key challenge here is? If we look at maybe the product offering, is it upselling new items, the focus areas that you launch? Or is it maintained growth within the legacy categories maybe? What do you see the key item is to drive growth with the wholesale?

[Analyst]: Yep. Thank you. If you stay on the topic then of growing with the wholesale customers, what do you think the key challenge here is? If we look at maybe the product offering, is it upselling new items, the focus areas that you launch? Or is it maintained growth within the legacy categories maybe? What do you see the key item is to drive growth with the wholesale?

Speaker #1: And of course, you know, we need to build, you know, a broader base of strong wholesale partners. Because then, of course, we will be less impacted if one decides to buy a bit less or decides to do something that will have an impact on us.

Speaker #2: What do you see as the key item to drive growth for the wholesale?

Speaker #1: So I think, you know, it's more that. So it's a bit about, you know, strategic key account management that we need to, you know, build than go to market slightly different.

Speaker #1: No, but I think, you know, it is—to continue to do what we're doing. But I think what we need to be better at—we have a couple of really big customers.

Henrik Bunge: No, but I think it is to continue to do what we're doing. But I think what we need to be better at, we have a couple of really big customers, and of course, we need to build a broader base of strong wholesale partners, because then, of course, we will be less impacted if one decides to buy a bit less or decides to do something that will have an impact on us. So I think it's more that, so it's a bit about strategic key account management that we need to build than go to market slightly different because that's actually working. Many of our big key accounts is doing fantastic, and we're growing really, really well.

Speaker #1: Because that's actually working. Many of our big key accounts are doing fantastic and we're growing really, really well. But of course, if you then have one or two that is buying, you know, high volumes and they decide to do something dropping their purchase or focusing on, you know, cash flow or something that will have an impact on how they're buying from us, then that has an impact.

Speaker #1: And of course, you know, we need to build a broader base of strong wholesale partners, because then, of course, we will be less impacted if one decides to buy a bit less or decides to do something that will have an impact on us.

Speaker #1: So I think, you know, it's more that. So it's a bit about, you know, strategic key account management that we need to, you know, build, and then go to market slightly differently.

Speaker #1: And of course, we simply need to spread the base a bit broader with wholesale. I think that's more, you know, my key take here.

Speaker #1: Because that's actually working. Many of our big key accounts are doing fantastic, and we're growing really, really well. But of course, if you then have one or two that are buying, you know, high volumes, and they decide to do something, dropping their purchase or focusing on, you know, cash flow or something, that will have an impact on how they're buying from us—then that has an impact.

Speaker #1: So we're not so dependent on a few. But very clearly, I think we have a good product proposition. We know how to drive wholesale.

Henrik Bunge: But of course, if you then have one or two that is buying high volumes and they decide to do something, dropping their purchase or focusing on cash flow or something that will have an impact on how they are buying from us, then that has an impact. And of course, we simply need to spread the base a bit broader with wholesale.

Speaker #1: We need to continue to build strong partnership and be really close with those. So we are really their best, you know, business partners, no matter whether it's boost, stadium, XXL or Zalando.

Speaker #1: They all require slightly different support. And we need to be the one that is there with them, helping them to drive sales through and win consumers.

Speaker #1: And of course, we simply need to spread the base a bit broader with wholesale. I think that's more, you know, my key take here.

Speaker #2: Yeah. Thank you. That's very clear. And if we look then at the geographical markets, Germany, maybe if we like the disregard the online channels there, just look at the, maybe the launch, what is sort of the progress here and what is your focus areas for growing in Germany?

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: That is more my key take here, so we are not so dependent on a few.

Speaker #1: So we're not so dependent on a few. But very clearly, I think we have a good product proposition. We know how to drive wholesale.

[Analyst] (Redeye): Okay. Yep.

[Analyst]: Okay. Yep.

Henrik Bunge: But very clear, I think we have a good product proposition. We know how to drive wholesale. We need to continue to build strong partnership and be really close with those so we are really their best business partners, no matter whether it is Boozt, Stadium, XXL, or Zalando. They all require slightly different support, and we need to be the one that is there with them, helping them to drive sell-through and win consumers.

Speaker #1: We need to continue to build strong partnerships and be really close with those. So we are really their best, you know, business partners, no matter whether it's Boost, Stadium, XXL, or Zalando.

Speaker #1: No. But the focus in Germany has been to really take ownership over Hamburg. It's a bit of a three-legged, you know, approach. So one, drive German sales within Zalando.

Speaker #1: They all require slightly different support, and we need to be the ones who are there with them, helping them to drive sales through and win consumers.

Speaker #1: So the Zalando business goes to German consumers. Zalando, of course, sells, you know, in all European markets. So that's one hand. Of course, our own ecom towards German consumers.

[Analyst] (Redeye): Yep. Thank you. That is very clear. If we look then at the geographical markets, Germany, maybe if we disregard the online channels there, just look at maybe the launch. What is sort of the progress here, and what are your focus areas for growing in Germany?

[Analyst]: Yep. Thank you. That is very clear. If we look then at the geographical markets, Germany, maybe if we disregard the online channels there, just look at maybe the launch. What is sort of the progress here, and what are your focus areas for growing in Germany?

Speaker #1: And then, of course, build a wholesale-based in Germany. But starting with Hamburg. So all those three we're doing. And looking at the year to date, so Germany is roughly about flat with declining in Q2.

Speaker #1: No, but the focus in Germany has been to really take ownership over Hamburg. It's a bit of a three-legged, you know, approach. So, one, drive German sales within Zalando.

Henrik Bunge: The focus in Germany has been to really take ownership over Hamburg. It is a bit of a three-legged approach. So one, drive German sales within Zalando. The Zalando business goes to German consumers. Zalando, of course, sells in all European markets. So that is one hand. Of course, our own e-com towards German consumers. Then, of course, build a wholesale base in Germany, but starting with Hamburg. So all those three we are doing. Looking at the year to date, so Germany is roughly about flat with declining in Q2. We can see that on one hand, the Zalando business, so them selling to German consumers, is doing really, really well. So here we are growing. However, our own e-com in Germany is flat, declining like 1% full year. So of course, here we need to change.

Speaker #1: We can see that on one hand, the Zalando business, so them selling to German consumers is doing really, really well. So here we're growing.

Speaker #1: However, our own ecom in Germany, you know, is flat, declining like 1%, you know, full year. So of course, here we need to change.

Speaker #1: So the Zalando business goes to German consumers. Zalando, of course, sells in all European markets. So that's one hand. Of course, our own e-com towards German consumers.

Speaker #1: And the big challenge here is that when we look at, you know, performance marketing, so we give, you know, the ecom team a krone to invest.

Speaker #1: And then, of course, build a wholesale base in Germany, but starting with Hamburg. So, all those three we're doing. And looking at the year-to-date, Germany is roughly about flat.

Speaker #1: Of course, you know, if you want to make the most out of that, you then invest into markets where the brand is stronger because you'll get more back.

Speaker #1: We're declining in Q2. We can see that, so them selling to German consumers is doing really, really well. So here we're growing. However, our own e-com in Germany is flat, declining like 1% full year.

Speaker #1: Whilst, of course, in Germany, you won't get as much back for that krone invested. But you won't do it anyway. For the long run.

Speaker #1: So of course, that's the constant, of course, you know, balance you need to manage simply. We can invest more in Germany, own ecom. And that, of course, will enable us to grow there.

Speaker #1: So of course, here we need to change. And the big challenge here is that when we look at, you know, performance marketing, so we give, you know, the ecom team a krone to invest of course, you know, if you want to make the most out of that, you then invest into marketing, markets where the brand is stronger because you'll get more back.

Henrik Bunge: The big challenge here is then when we look at performance marketing, so we give the e-com team a krona to invest. Of course, if you want to make the most out of that, you then invest into markets where the brand is stronger because you will get more back. Whilst, of course, in Germany, you will not get as much back for that krona invested, but you want to do it anyway for the long run. So of course, that is the constant balance you need to manage, simply. We can invest more in Germany on e-com, and that, of course, will enable us to grow there. But if we take exactly the same money and put it into another market, we will probably grow twice the pace.

Speaker #1: But if we take exactly the same money and put it into another market, we'll probably grow twice the pace. So we need to find that balance.

Speaker #1: And I think we need to invest even more here, even though it's not going to pay back as much as some of the other markets.

Speaker #1: So own ecom Germany, we need to do better. And the last, of course, is to open up new customers. And here we have a new country manager that is, that joined us last Monday, actually.

Speaker #1: While, of course, in Germany, you won't get as much back for that krone invested, but you want to do it anyway for the long run.

Speaker #1: So, of course, that's the constant balance you need to manage, simply. We can invest more in Germany, own e-com, and that, of course, will enable us to grow there.

Speaker #1: Who will then help us to start building strong relationship with German wholesale customers. And that business is very small currently. And that we need to, you know, focus now with this new country manager.

Speaker #1: But if we take exactly the same money and put it into another market, we'll probably grow at twice the pace. So we need to find that balance.

Speaker #1: But it's all those three needs to, you know, come to play at the same time. And then, of course, building this from, you know, from Hamburg and then expanding, of course, outside, Hamburg.

Henrik Bunge: We need to find that balance, and I think we need to invest even more here, even though it is not going to pay back as much as some of the other markets. So on e-com Germany, we need to do better. The last, of course, is to open up new customers. Here we have a new country manager that joined us last Monday, actually, who will then help us to start building strong relationship with German wholesale customers. That business is very small currently, and that we need to focus now with this new country manager. But it is all those three needs to come to play at the same time. Then, of course, building this from Hamburg and then expanding, of course, outside Hamburg. So that is the focus.

Speaker #1: And I think we need to invest even more here, even though it's not going to pay back as much as some of the other markets.

Speaker #1: So that's the focus. One reflection potentially is if we see that consumers in Scandinavia is picking up a bit, we don't really see that at all in Germany.

Speaker #1: So, on e-com Germany, we need to do better. And the last, of course, is to open up new customers. And here we have a new country manager that joined us last Monday, actually.

Speaker #1: Who will then help us to start building strong relationships with German wholesale customers. And that business is very small currently, and we need to, you know, focus now with this new country manager.

Speaker #1: So it's, you know, still a fairly, you know, pessimistic, you know, outlook on the world, on the economy, in Germany where, you know, in some other markets we've seen that, well, the trend actually shifting a bit to be a bit more positive.

Speaker #1: But it's all those three needs to, you know, come into play at the same time. And then, of course, building this from, you know, from Hamburg and then expanding, of course, outside Hamburg.

Speaker #1: But we're so small. So we should be able to grow anyway.

Speaker #1: So that's the focus. One reflection, potentially, is if we see that consumers in Scandinavia are picking up a bit—we don't really see that at all in Germany.

Speaker #2: Yeah. Yeah. But a bit of a challenged consumer in Germany then, I guess.

Henrik Bunge: One reflection potentially is if we see that consumers in Scandinavia is picking up a bit, we do not really see that at all in Germany. Still a fairly pessimistic outlook on the world, on the economy in Germany, where in some other markets, we have seen that, well, the trend actually shifting a bit

Speaker #1: Yes. Yes.

Speaker #2: Yeah. And then finally on the own online, could you just remind us of the drivers of this impressive growth that we see now in the quarter?

Speaker #2: And maybe do you feel that you still have, you know, good pricing power here? We saw the gross margin remains very strong in this channel.

Speaker #1: So it's, you know, still a fairly, you know, pessimistic outlook on the world, on the economy in Germany, where, you know, in some other markets we've seen that, well, the trend is actually shifting a bit to be a bit more positive.

Speaker #2: What are the prospects here going forward?

Speaker #1: No. But I think, you know, ecom, both year to date and in Q2 looks very, very promising. Which, of course, is an indication that there's a lot of consumers out there that really want to buy stuff from us.

[Analyst] (Redeye): Yeah

[Analyst]: Yeah

Henrik Bunge: to be a bit more positive.

Speaker #1: But we're so small, so we should be able to grow anyway.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: But we are so small, so we should be able to grow anyway.

Speaker #2: Yeah, yeah. But a bit of a challenged consumer in Germany then.

[Analyst] (Redeye): Yeah. But a bit of a challenged consumer in Germany then, I guess.

[Analyst]: Yeah. But a bit of a challenged consumer in Germany then, I guess.

Speaker #1: Yes. Yes.

Speaker #1: So on one hand, sales is growing. Gross margin is up. Profit in absolute numbers is up. Profit ratio is up. So I think everything is simply pointing in the right direction.

Henrik Bunge: Yes.

[Analyst] (Redeye): Yeah. Finally, on online, could you just remind us of the drivers of this impressive growth that we see now in the quarter? Maybe do you feel that you still have good pricing power here? We saw the gross margins remain very strong in this channel. What are the prospects here going forward?

[Analyst]: Yeah. Finally, on online, could you just remind us of the drivers of this impressive growth that we see now in the quarter? Maybe do you feel that you still have good pricing power here? We saw the gross margins remain very strong in this channel. What are the prospects here going forward?

Speaker #2: Yeah. And then, finally, on the online side, could you just remind us of the drivers of this impressive growth that we see now in the quarter? And maybe do you feel that you still have, you know, good pricing power here?

Speaker #2: We saw that the gross margin remains very strong in this channel. What are the prospects here going forward?

Speaker #1: And also when we see performance marketing and the stuff that we're doing there, the return on ad spend that we're having is record high.

Speaker #1: No, but I think, you know, e-com, both year-to-date and in Q2, looks very, very promising. Which, of course, is an indication that there's a lot of consumers out there that really want to buy stuff from us.

Henrik Bunge: No, I think e-com both year to date and in Q2 looks very, very promising, which of course is an indication that there are a lot of consumers out there that really want to buy stuff from us. On one hand, sales is growing, gross margin is up, profit in absolute numbers is up, profit ratio is up. I think everything is simply pointing in the right direction. Also when we see performance marketing and the stuff that we are doing there, the return on ad spend that we are having is record high. That is up, I think 34% to 35% versus last year. If we put in one krona, we will get 34% more revenue this year versus last year. Already last year was really good.

Speaker #1: So that's up, I think, 34, 35% versus last year. So if we put in one krone, we'll get 34% more revenue this year versus last year.

Speaker #1: So, on one hand, sales are growing, gross margin is up, profit in absolute numbers is up, and profit ratio is up. So, I think everything is simply pointing in the right direction.

Speaker #1: And already last year was really, really good. So of course, there's something happening here that is very, very strong. So super proud and super happy over ecom.

Speaker #1: Clearly one of the highlights in the quarter. But we're not only an ecom company. You know, we want to drive, of course, all channels.

Speaker #1: And also, when we look at performance marketing and the activities we're pursuing there, the return on ad spend we are seeing is at a record high.

Speaker #1: That, I think, is key for us to, well, to grow 10%.

Speaker #2: Perfect. Yeah. Thank you. Very clear. And that's all on my end. So I'll leave it to you for any concluding remarks.

Speaker #1: So that's up, I think, 34–35% versus last year. So if we put in one krone, we'll get 34% more revenue this year versus last year.

Speaker #1: Excellent. No. Thank you, Arman. Good questions always. And again, of course, we had 25 consecutive quarters of growth. We were hoping, of course, it will be at 26th one.

Speaker #1: And already last year was really, really good. So of course, there's something happening here that is very, very strong. So, super proud and super happy over e-com.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: So of course, there is something happening here that is very strong.

Speaker #1: This is simply not good enough. There are highlights. And of course, you can talk about them in circles. But we're not happy with the sales growth.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: Super proud and super happy over e-com, clearly one of the highlights in the quarter.

Speaker #1: Clearly, one of the highlights in the quarter. But we're not only an e-commerce company. You know, we want to drive, of course, all channels.

Speaker #1: We can do better. I think that's the key message. We simply need to shape up. That's it. So have a fantastic Friday. Don't forget to work out.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Henrik Bunge: But we are not only an e-com company. We want to drive, of course, all channels.

[Analyst] (Redeye): Yeah.

[Analyst]: Yeah.

Speaker #1: That, I think, is key for us to—well, to grow 10%.

Henrik Bunge: That, I think, is key for us to grow 10%.

Speaker #1: And remember, we're here for the long run. We want to build a global iconic, you know, sports fashion brand that really inspires people to move.

Speaker #2: Perfect. Yeah, thank you. Very clear. And that's all on my end, so I'll leave it to you for any concluding remarks.

[Analyst] (Redeye): Perfect. Yeah. Thank you. Very clear. That is all on my end, so I will leave it to you for any concluding remarks.

[Analyst]: Perfect. Yeah. Thank you. Very clear. That is all on my end, so I will leave it to you for any concluding remarks.

Speaker #1: And that hasn't changed just because we're dipping, you know, sales in one quarter.

Speaker #1: Excellent. No, thank you, Jarmo. Good questions, as always. And again, of course, we had 25 consecutive quarters of growth. We were hoping, of course, it would be the 26th one.

Henrik Bunge: Excellent. No, thank you, Arnold. Good questions, always. Again, of course, we had 25 consecutive quarters of growth. We were hoping, of course, it would be a 26th one. This is simply not good enough. There are highlights, and of course, you can talk about them in circles, but we are not happy with the sales growth. We can do better. I think that is the key message. We simply need to shape up. That is it. So, have a fantastic Friday. Do not forget to work out, and remember, we are here for the long run. We want to build a global, iconic sports fashion brand that really inspires people to move. That has not changed just because we are dipping sales in one quarter.

Speaker #2: Thank you.

Speaker #1: This is simply not good enough. There are highlights, and of course, you can talk about them in circles. But we're not happy with the sales growth.

Speaker #1: We can do better. I think that's the key message. We simply need to shape up. That's it. So, have a fantastic Friday. Don't forget to work out.

Speaker #1: And remember, we're here for the long run. We want to build a global, iconic, you know, sports fashion brand that really inspires people to move.

Speaker #1: And that hasn't changed just because we're dipping, you know, sales in one quarter.

Speaker #2: Thank you.

[Analyst] (Redeye): Thank you.

[Analyst]: Thank you.

Henrik Bunge: Brilliant.

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Q2 2026 Bjorn Borg AB Earnings Call

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