Q4 2024 Bjorn Borg AB Earnings Call Transcript
Key Points
- Bjorn Borg AB (OSTO:BORG) achieved record sales in Q4 2024 and for the full year, with a 19% growth in the quarter and 14% growth for the year.
- The company has seen strong development in its sports apparel and footwear categories, with sports apparel experiencing double-digit growth for 10-11 consecutive quarters.
- Bjorn Borg AB (OSTO:BORG) successfully integrated its footwear business after a partner's bankruptcy, which is now seen as a major growth opportunity.
- The brand's strength is increasing, with improved consumer awareness and intent in key markets like Germany, Sweden, and the Netherlands.
- The company is strategically shifting focus from retail stores to online growth and branded spaces with leading retailers, which is expected to enhance profitability.
- Gross margin declined to 53.3% in the quarter, primarily due to the integration of the footwear business and one-off discounts.
- Operating profit decreased in the quarter due to investments in the team and brand, as well as the impact of footwear margin.
- Retail stores are declining as the company closes full-price stores to focus on online and branded spaces, which may impact short-term sales.
- E-commerce growth slowed to 10%, lower than previous years, partly due to reduced discounts.
- The company faces challenges in maintaining growth momentum in the footwear segment, with potential supply chain and customer issues.
Good morning and welcome to our Q4 2024 presentation. And with that also the closure of 2024. And looking back, for us, it's been a great year. So when we were here the last time announcing our Q3 and also of course, just prior to that we updated our long term financial goals and we clearly told the world that we are now ready to start growing.
And they're looking at what has happened since that is exactly what we have done. We have identified a number of growth initiatives, of which two are strong categories in footwear and sports apparel, and those are doing an exceptionally strong development currently, which is absolutely great, of course.
We've also said that we want to grow more in Germany, and that's been our number one, growth market and here we see also good progress. Together with of course, all the other categories, all the other markets continuing to slowly, of course, add to our top line growth.
But looking at 2024, I think clearly the highlights are divided into two things. One, an ongoing very strong
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